The Trans-Pacific Partnership Agreement is set to provide the Australian financial services industry with a platform into major economies within the Pacific Rim, says the Financial Services Council (FSC).
Commenting on The Trans-Pacific Partnership (TPP) – which was finalised this week by 12 Pacific-Rim nations including Australia – the FSC said the agreement is a positive step forward for Australia's financial services sector and broader economy.
FSC chief executive Sally Loane said: “When the TPP agreement is up and running, Australia will be able to trade in financial services on the same basis as a domestic provider in the participating countries.
“Regulatory restrictions in participating TPP countries will be removed for Australian firms, which will create more streamlined processes and transparency for licencing of financial services firms.
“It will further integrate our economy with those in the Asia-Pacific region, which is the fastest-growing region in the world, and the one we want to be able to access," Ms Loane said.
Prime Minister Malcolm Turnbull also articulated the importance of the agreement, arguing that it "ushers in a new era of economic growth and opportunity across the fast-growing Asia Pacific".
"The TPP will drive significant growth in our world-class services industries," he said.
According to a statement issued by Mr Turnbull, the TPP will eliminate over 98 per cent of tariffs in the TPP region, removing import taxes on approximately $9 billion of Australian trade.
"The TPP writes regional trade rules which will drive Australia's integration in the region and underpin our prosperity," he said.
UNSW Business School fellow of economics Tim Harcourt reinforced the above comments, noting that the agreement will have a large impact on Australia's export industries.
“The deal covers 40 percent of the global economy, and make no mistake it will have a major impact on the Australian economy, generally for the better.
“The new TPP deal puts Asia-Pacific region front and centre of the global economy for the 21st century," he said.
Participating countries included in the TPP are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the US.
The TPP must now be ratified by legislatures in most participating nations.
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