THE conclusion of the landmark Trans-Pacific Partnership Agreement (TPP), resolved in the early hours of Monday morning, has been welcomed by Asialink Business, Australia's National Centre for Asia Capability.
Following eight years of negotiations, 12 Pacific-rim nations including Australia agreed upon the free trade agreement, which will minimise trade tariffs in the region and enforce common labour, environmental and legal standards.
Asialink Business CEO Mukund Narayanamurti believes the agreement will foster growing cooperation with markets in the region.
"Australia's economic prosperity is inherently interlinked with the Asia-Pacific. The TPP creates a common platform of rules and will help deepen our integration in the region, create jobs and drive economic prosperity," Narayanamurti says.
"The TPP complements Australia's successful negotiation of free trade agreement with our biggest north Asian trading partners, China, Japan and Korea.
"It unlocks new opportunities for Australian businesses in key regional markets that account for 40 per cent of global GDP."
According to Narayanamurti, the TPP will help drive growth in Australia's services sector, including education, tourism, financial, legal, telecommunications, health and mining services.
"According to recent research by Asialink Business, services trade with Asia could be worth more than $160 billion to Australia's economy and create more than 1 million new jobs for Australians by 2030," he says.
Narayanamurti says businesses will require specialised capabilities to harness the potential of the new regional trade platform.
"Australian businesses need to invest in developing sophisticated market insights, as well as the skills needed to navigate global supply chains and manage cross-cultural and virtual teams, for example," he says.
"Asialink Business congratulates the trade minister on concluding Australia's first ever regional trade agreement spanning the Asia-Pacific and is ready to assist in building these capabilities, especially the Asia capabilities required to achieve results in Japan, Malaysia, Singapore, Vietnam and Brunei."
The TPP signatories are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United States and Vietnam.
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