METS to Benefit from Trans-Pacific Partnership Deal
The Trans-Pacific Partnership Deal that was announced this morning is the world’s largest regional trade agreement, involving 12 nations and covering about 40% of the global economy. Australia is one of the 12 nations included in the deal.
The Australian Mining Equipment, Technology and Services (METS) Sector will benefit substantially from the Trans-Pacific Partnership Deal as it opens up export and investment opportunities and reduces costs when doing business offshore.
“Exporting is the life blood of Australian METS,” said Christine Gibbs Stewart, CEO of Austmine. “Trade deals such as this will make Australian mining equipment and services more competitive, and make it easier for our METS to do business offshore. We have seen substantial benefits with the Free Trade Agreements (FTAs) in regards to METS, and this trade deal will cement those even further while widening the brief and bringing new advantages.”
According to a recent Austmine national METS survey as much as 66% of the sector exports and over half of those have operations or investments offshore. TPP countries represent a substantial part of both export and investment activity with New Zealand, the United States, Canada, Chile, Malaysia and Singapore included in Australian METS’ top 10 export markets, and the United States, Canada and Chile being Australian METS’ most important investment destinations.
“Along with tariffs being reduced to zero by the TPP, the easier movement of people and the new rules on state-owned enterprises will provide substantial benefits. Australian METS’ biggest export is our service capabilities, so being able to easily bring people in and out of countries quickly and efficiently will save time and money.
Smoothing the way to do business with the large state-owned enterprises is needed because of their size, lack of transparency in procurement and simplifying some of the complexities in becoming part of the supply chain opportunities will also be a bonus.
Further, the new commitments from Chile, Mexico and Peru on the provision of consulting, research and development, engineering, environmental, mining and technical testing and analysis services will open up business opportunities for our METS in those markets even further.
Austmine welcomes the focus on METS by the Australian Government in the TPP negotiations. For 26 years, we have been developing the Australian METS sector and letting Government know it is a vital part of the Australian economy. Australian METS companies contribute some $90 billion in revenue to the economy and export $15bn of products and services to mining houses worldwide. Australian METS have not only contributed to our success as a mining nation, but we are a highly innovative, technologically advanced, world leading sector.”
Austmine is the peak industry body representing the Australian mining equipment, technology and services (METS) sector.