Coalition in new beef over TPP trade deal

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By Leith van Onselen

The Australian is reporting today that the Trans-Pacific Partnership (TPP) trade agreement, which enters its final stages of negotiation, could require that Australia allow access to US beef imports that are potentially contaminated with Mad Cow disease:

The US has previously suggested increasing Australia’s access to its sugar markets in return for a lowering of biosecurity limits on American beef and this month cabinet was warned “there is ­increasing pressure from the US, Japan and Europe to allow fresh beef” imports.

According to the cabinet briefing, obtained by The Australian, the US has offered Australia some of the “least acceptable outcomes” in the TPP trade talks and offers of increased sugar and dairy access “is still linked” to quarantine conditions.

The US’ linking of quarantine with sugar and dairy access has reportedly infuriated both the beef industry and some Coalition members, with both the National’s Agriculture Minister, Barnaby Joyce, and Liberal Senate agricultural committee member, Bill Heffernan, publicly against such a move.

The issue is the second recent public display of dissent over the TPP within the Coalition. Last month, Bill Heffernan warned “about unintended consequences” of the TPP, in particular the Investor State Dispute Settlement clause, which would empower multinationals to sue governments if new laws such as food safety standards harm their profits. Heffernan also asked that the TPP be released to the public so that it can be tested by people with “dirt under their fingernails”.

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It is worth highlighting, once again, that US Congressmen have received access to the draft TPP, as have the Malaysian parliament, whereas Australia’s parliamentarians have been kept completely in the dark.

One wonders how many other gremlins are lurking within the draft TPP text to which we are completely oblivious.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.