The CPTPP eliminates 98 per cent of tariffs in the CPTPP region. The CPTPP market access outcomes build on existing levels of market access Australia has with its FTA partners, namely Japan, Chile, New Zealand, Malaysia, Singapore, Brunei and Vietnam. The CPTPP also opens up valuable new market access opportunities for Australian exporters in the two CPTPP Parties where Australia does not have a FTA, namely, Canada and Mexico.

As a regional free trade agreement, the CPTPP has additional benefits. The combined effect of new market access and common rules makes it easier for Australian businesses, exporters and consumers to participate in regional value chains.

Agriculture

Australia exported around $12 billion worth of agricultural goods to CPTPP countries in 2017, representing close to 23 per cent of Australia's total exports of these products. The CPTPP provides preferential access for more than $5.5 billion of Australia's dutiable agricultural exports to CPTPP countries.

Summary outcomes by sector

Beef

Around 33 per cent of Australia's beef exports go to CPTPP markets. Beef is Australia's largest single agricultural goods export, worth $7.5 billion in 2017.

CPTPP market access outcomes for Australian beef producers and exporters include:

• Japan's beef tariffs will be reduced to 9 per cent within 15 years of entry into force of the CPTPP. Australian fresh, chilled and frozen beef exports to Japan were valued at $2 billion in 2017;
• The majority of Japan's tariffs on offal will be eliminated over 10 to 15 years of entry into force of the CPTPP, and tariffs on cheek and head meat significantly reduced to 9 per cent within 15 years of entry into force of the CPTPP. Australian offal exports to Japan were valued at $213 million in 2017;
• Elimination of Japanese tariffs on processed meat products within 15 years of entry into force of the CPTPP. Australian exports of these products to Japan were valued at $26.7 million in 2017;
• Elimination of Canadian beef tariffs (currently 26.5 per cent) within five years of entry into force of the CPTPP. Australian beef exports to Canada were valued at more than $126 million in 2017;
• Elimination of all Mexican tariffs on beef carcasses and cuts (currently up to 25 per cent) within 10 years of entry into force of the CPTPP; and
• Elimination of Mexico's tariff (currently 20 per cent) on "other offal" (used for taco meat) from entry into force of the CPTPP. Australian exports of this product were valued at around $4.6 million in 2017.

Sheepmeat

Australia exports around $425 million in lamb and mutton to CPTPP markets, 16 per cent of all sheepmeat exports.

Key CPTPP market access outcomes include:

• Tariffs on exports to Mexico will be eliminated within 8 years of entry into force of the CPTPP. Australia sheepmeat exports to Mexico were valued at $13 million in 2017; and
• Tariffs on sheepmeat exports to all other CPTPP countries were eliminated upon entry into force of the CPTPP.

Wool

Total Australian exports of wool were valued at around $3.7 billion in 2017, and wool exports to CPTPP countries were valued at around $35 million in that period.

The CPTPP eliminates all remaining tariffs on Australian raw wool exports to CPTPP countries from entry into force of the Agreement. Products produced using Australian wool in Malaysia, Vietnam or any other CPTPP partner will receive preferential treatment throughout the CPTPP region. The rules of origin for textiles encourage greater demand for the Australian wool used to produce high quality yarns.

Pork

In 2017, 71 per cent of Australia's pork exports went to CPTPP countries, valued at almost $88.6 million.

Key CPTPP market access gains for Australian pork producers and exporters include:

• Building on the Japan-Australia Economic Partnership Agreement (JAEPA), elimination of the ad valorem component of Japan's pork tariffs within 10 years of entry into force of the CPTPP;
• Building on JAEPA, a 90 per cent reduction in Japan's specific tariff applied to pork cuts and carcasses within 10 years of entry into force of the CPTPP;
• Elimination of all tariffs on pork exported to Malaysian within 15 years; and
• Elimination of Mexico's 20 per cent pork tariff on entry into force of the CPTPP.

Cereals and grains

Total Australian exports of cereals and grains were valued at around $8.5 billion in 2017, more than 19 per cent (or $1.6 billion) of which was exported to CPTPP countries.

CPTPP market access outcomes for Australian cereals and grains producers and exporters include:

• Significant market access improvements in Japan for wheat, barley and malt, building on JAEPA, including:
• reduction of the mark up on wheat and barley by 45 per cent within 8 years of entry into force of the CPTPP;
• the creation of new quota volumes for wheat and barley under the simultaneous buy-sell mechanism. Australia's exports of these products to Japan were worth $553 million in 2017; and
• new quota access for malt exports;
• Elimination of Mexican tariffs on wheat (currently 67 per cent) within 10 years of entry into force of the CPTPP;
• Elimination of Mexican tariffs on barley (currently 115 per cent) within 5 years of entry into force of the CPTPP; and
• Elimination of all Canadian tariffs on cereals and grains upon entry into force of the CPTPP.

Dairy

Total Australian dairy products exports were valued at more than $2.9 billion in 2017, and 34 per cent (valued at $974 million) was exported to CPTPP countries.

Key CPTPP market access outcomes for Australian dairy producers and exporters include:

• Significant market access improvements in Japan for Australian dairy. Australian dairy exports to Japan were worth $498 million in 2017. Building on JAEPA, outcomes include:
• elimination of tariffs on certain cheese products, and tariff reductions and new quota allocations for remaining cheese products;
• new quotas for butter and skim milk powder with the in-quota mark-up eliminated within 10 years of entry into force of the CPTPP; and
• new quotas and tariff reductions for a range of dairy products including ice cream, whole milk powder, condensed milk, yoghurt and infant formula;
• Preferential access into the highly protected Canadian market with new quotas for dairy products including, cheese, milk powders and butter. Tariffs on milk protein concentrates were eliminated on entry into force; and
• New quotas access into Mexico, including for butter, cheese and milk powders, and elimination of tariffs on yoghurt.

Rice

Total Australian rice exports were estimated to be valued at around $225 million in 2017. Key CPTPP market access outcomes include:

• For the first time since 1995, new quota access for Australia into Japan with a new 6,000 tonne quota from entry into force of the CPTPP, growing to 8,400 tonnes after 12 years, for Australian rice and rice flour exports. Japan has also reduced tariffs on a number of rice preparation products; and
• Improvements to Japan's tendering process for rice. Japan will now offer tenders 6 times a year, including an additional tender in May in line with Australia's growing season.

Sugar

Total Australian exports of sugar were worth an estimated $2.1 billion in 2017, and over one quarter of these exports (valued at $588 million) went to CPTPP countries.

CPTPP market access gains for Australian sugar producers and exporters include:

• Building on the JAEPA, elimination of Japan's tariff and reduction in the levy on high polarity sugar exports on entry into force of the CPTPP. In 2017, Australian sugar exports to Japan were worth an estimated $462 million;
• Elimination of Canada's tariffs on refined sugar (currently CA$30.86/tonne) within 5 years of entry into force of the CPTPP. Australia already has duty free access for raw sugar into Canada;
• Mexico will apportion Australia a guaranteed 7 per cent of any tariff rate quota for raw sugar in the years in which it is offered. Australia is only the sixth country Mexico has offered such an outcome;
• Elimination of in-quota tariffs on Vietnam's World Trade Organization (WTO) sugar quota on entry into force; and
• Malaysia has committed to allow Australia to engage in the wholesale distribution of refined sugar in Malaysia for use in the food and beverage industry.

Cotton

Total Australian exports of cotton were valued at nearly $2.1 billion in 2017, and 15 per cent of cotton exports (valued at $445 million) were sent to CPTPP countries.

All tariffs on Australian cotton exports will be eliminated under the CPTPP, with most eliminated from entry into force.

Australian cotton producers will now also benefit from creation of new regional supply chains into the Japanese consumer market. For example, clothing produced in Vietnam from Australian cotton benefits from the elimination of Japanese tariffs on cotton products over 10 to 15 years – encouraging greater demand for Australian cotton in the CPTPP region.

Wine

Total Australian wine exports were valued at more than $2.6 billion in 2017, and around 19 per cent of these exports (valued at $454 million) went to CPTPP countries.

CPTPP market access gains for Australian wine producers and exporters include:

• Elimination of Canada's tariffs (currently 1.87 ¢/litre and 4.68 ¢/litre) upon entry into force of the CPTPP. Australian wine exports to Canada were valued at $187 million in 2017;
• Elimination of Malaysian tariffs within 15 years of entry into force of the CPTPP. Australian wine exports to Malaysia were valued at nearly $9 million in 2017 and are currently subject to tariffs ranging from 7 to 23 Malaysian Ringgit per litre;
• Elimination of Vietnamese tariffs within 11 years of entry into force of the CPTPP. Australian wine exports to Vietnam were valued at $5.2 million in 2017 and are currently subject to tariffs of up to 59 per cent; and
• Elimination of Mexican tariffs (currently 20 per cent) within 3 years of entry into force of the CPTPP for higher quality wine and elimination of all tariffs within 10 years of entry into force of the CPTPP for all wine.

Horticulture

Total Australian horticulture exports were valued at $5.1 billion in 2017, and 14 per cent of these exports (valued at $756 million) went to CPTPP countries.

CPTPP market access outcomes for Australian horticultural producers and exporters include:

• Building on JAEPA, Japan extended the period by which oranges will face the lower "out of season" tariff (corresponding to the main growing season in Australia) to an 8 month period (from 1 April to 30 November), and will eliminate that tariff over 6 years. The higher "in season" tariff will be eliminated over 7 years. Australian orange exports to Japan were valued at $54 million in 2017;
• Japan will also eliminate all tariffs on fruit juices within 10 years of entry into force of the CPTPP, building on the quota arrangements achieved under JAEPA. Australia fruit juice exports to Japan were valued at $10 million in 2017;
• Elimination of all Canada's horticulture tariffs upon entry into force of the CPTPP. Australia horticultural exports to Canada were valued at $38 million in 2017; and
• Elimination of most of Mexico's horticulture tariffs upon entry into force of the CPTPP and elimination of all tariffs within 15 years of entry into force.

Seafood

Australia's total seafood exports in 2017 were worth nearly $1.4 billion, with exports to CPTPP countries valued at $724 million.

CPTPP market access outcomes for Australian seafood producers and exporters include:

• Elimination of all seafood tariffs into Japan within 15 years of entry into force of the CPTPP;
• Elimination of most seafood tariffs into Vietnam on entry into force with the remainder eliminated within 4 years;
• Elimination of all seafood tariffs into Canada on entry into force of the CPTPP; and
• Mexico's seafood tariffs will be eliminated within 15 years of entry into force of the CPTPP, with many eliminated on entry into force.

Resources, energy and manufactured goods

Australian exports of resources, energy, and manufactured products generally face far lower tariff barriers than those facing agricultural goods. Nonetheless, the CPTPP eliminates remaining tariffs on Australian exports of non-agricultural products to CPTPP countries and create new opportunities for Australian exports.

Resources and energy

Australia's exports of resources and energy products to CPTPP countries are worth around $43 billion, representing around 59 per cent of Australia's total goods exports to these countries.

CPTPP market access outcomes for resources and energy products that are additional to Australia's existing FTAs include tariff elimination on:

• butane, propane and liquified natural gas exports to Vietnam within 7 years of entry into force of the CPTPP; and
• refined petroleum exports to Vietnam within 10 years of entry into force of the CPTPP. Australia exported $9 million worth of refined petroleum to Vietnam in 2017.

Manufactured and other goods

Australia's exports of manufactured and other goods to CPTPP countries are worth an estimated

$19 billion. CPTPP market access outcomes for manufactured and other goods additional to Australia's existing FTAs include tariff elimination on:

• iron and steel products and aluminium exported to Canada on entry into force of the CPTPP. Australian exports of these products were worth around $14 million in 2017;
• leather and sack kraft paper exported to Mexico on entry into force of the CPTPP. In 2017, Australian exports to Mexico of leather were worth $2.1 million and sack kraft paper were worth $0.220 million;
• medicament exports to Mexico within 10 years of entry into force of the CPTPP. In 2017, Australian exports of medicaments to Mexico were worth $2.5 million;
• other manufactured products exported to Mexico within 15 years of entry into force of the CPTPP. Australia exports of these products to Mexico were valued at $105 million in 2017;
• iron and steel products exported to Vietnam within 10 years of entry into force of the CPTPP. Australian exports of these products to Vietnam were worth over $223 million in 2017; and
• automotive parts to Vietnam within 10 years of entry into force of the CPTPP.

In the CPTPP, Malaysia has committed to provide guaranteed access for Australian providers to engage in the wholesale distribution of automotive parts and components. Malaysia has also committed to stop providing excise tax credits for locally produced automotive parts. This scheme had provided an incentive for Malaysian manufacturers to use local parts over imported Australian products.