PERTH (miningweekly.com) – The Australian government has ratified the Trans-Pacific Partnership (TPP-11) trade agreement, a move that has been welcomed by the resources sector.

Australia is the sixth country to ratify the agreement, meaning it can now enter into force on December 30, with Australia joining Canada, Japan, Mexico, New Zealand and Singapore as part of the first group to ratify.

“Our ratification means we are guaranteeing maximum benefits for our farmers and businesses, with the bonus of two tariff reductions within 3 days - one on December 30, and another on January 1, 2019,” said Prime Minister Scott Morrison.

“The TPP-11 is one of the most comprehensive and ambitious trade agreements in Australia’s recent history. It will help support Australian businesses to grow and see annual benefits of up to A$15.6-billion to our national economy by 2030.

“Australian farmers and businesses will particularly benefit from new high-quality free trade agreements with Canada and Mexico, our first ever with these two of the world’s top 20 economies.”

“Australian exporters of industrial products such as iron and steel, leather and paper products and medical equipment, who currently sell A$19-billion worth of products to TPP-11 markets, will be able to grow their businesses without facing a tariff disadvantage,” Morrison said.

“The TPP-11 also improves our market access into Japan for our beef, wheat, barley and dairy exporters beyond the bilateral Japan-Australia Economic Partnership Agreement.”

The Minerals Council of Australia (MCA) on Wednesday said the ratification was great news for Australian jobs and exports.

“The TPP-11 will give Australian exporters an early double tariff cut, helping our world-class Australian minerals companies, as well as other export sectors like farming, manufacturing and wine,” said MCA CEO Tania Constable.

Economic modeling previously commissioned by the MCA has shown that by 2030, the TPP-11 will have increased Australian exports by A$29.9-billion, while generating additional direct investment into the country by A$7.8-billion, and overseas investment by Australian firms to A$26-billion.

“By trading with the rest of the world, Australia generates export earnings to support growth and jobs at home, gives consumers lower prices and more choice, forges more competitive industries and a more efficient economy,” Constable said.

“Trade and free trade agreements also give our manufacturers access to global supply chains and help lift millions of people in developing countries out of poverty.

“Australia has long been a trading nation and our minerals exports are a major part of the story of Australia’s international economic success.”