PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has welcomed Australia’s signing of the Regional Comprehensive Economic Partnership (RCEP), saying it would create more trade and investment opportunities for the nation’s minerals industry.

Australian Trade Minister Simon Birmingham said RCEP would be the world’s largest free trade agreement and would improve export opportunities for Australian farmers and businesses, especially in the services sector.

“This deal will further integrate Australian exporters into a booming part of the globe, with RCEP countries making up nearly 30% of world gross domestic product (GDP) and the world´s population,” Birmingham said.

“RCEP has been driven by the ten ASEAN nations, who collectively constitute Australia’s second largest two-way trading partner and have successfully brought Australia, China, Japan, New Zealand and South Korea into this regional trading block with them.

“This agreement may have taken eight years to negotiate but it could not have come at a more important time given the scale of global economic and trade uncertainty.”

Birmingham said that economic cooperation of this scale sends a strong signal that the region is committed to the principles of open trade for the post-Covid-19 recovery.

“Greater openness within our region, as well as the greater integration of value chains and more common rules of origin which this deal delivers, will make it easier for Australian businesses and investors to operate throughout our region, helping Australia to continue to grow our exports.

“There are particular gains for Australian providers within the financial services sector, education, health, engineering and other professional services, who can become better integrated within the region and have more access within RCEP countries.

“Australia is committed to fully ratifying RCEP as soon as possible so Australian farmers, businesses and investors can start to access the benefits of this agreement. It will also be an inclusive agreement, with the door open for others, especially India, to join if and when they are ready.”

The MCA’s CEO Tania Constable on Monday said that the long-awaited agreement, the world’s largest, signalled Australia and the South East Asian region’s shared commitment to open trade and investment.

“Trade, investment and economic cooperation maximise opportunities for Australia’s minerals industry to boost national income, generate government revenue and create high value jobs.

“One in five jobs in Australia is trade related and exporting companies on average have workforces 24% larger than non-exporting companies and pay 11.5% higher wages. Trade and investment boost economic growth, support jobs and improve living standards across Australia including in rural and regional areas.”

Constable said that the harmonisation of rules provided the basis for significant trade and investment in the fastest growing region in the world, enabling business to trade and invest efficiently across the range of services, products and infrastructure.

“It also provides the basis for cooperation and partnership that will drive the jobs, productivity and wellbeing of all who participate.

“Comprehensive regional trade agreements such as RCEP are critical in filling the void created by a stalemate in rules-making at the multilateral level and the rise of protectionist sentiments.

“Deeper integration through regional agreements will generate additional trade and output gains in Australia’s sectors of comparative advantage,” Constable said.

Data released by the MCA last week found that Australia’s mining export had significant growth potential into the Asian region, with demand remaining strong for gold, coal, copper, semi-finished products of iron and steel and aluminium.

“The RCEP provides the landscape for Australia to continue being a major source of resources for Asia’s growing economies, supporting their growth and contributing to deeper economic, social and cultural ties to the benefit of everyone in our region,” Constable said.