Trans-Pacific Partnership will boost trade
The new Trans-Pacific Partnership (TPP) trade deal will make it easier for innovative Australian mining equipment, technology and services (METS) companies to do business offshore, according to Techenomics International CEO Chris Adsett.
The TPP, which was signed this week, will open up export and investment opportunities and reduce costs when doing business offshore. It involves an agreement by 12 countries around the Pacific Ocean - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
These nations cover about 40% of the global economy and the TPP is the world’s largest regional trade agreement. The legislative body (government) of each signatory country still needs to agree to the TPP for it to be ratified.
Chris Adsett says any initiative to make it easier for Australian METS companies to do business overseas in these difficult times for the mining industry is welcome. “The Australian market is relatively small and the best way to utilize the innovative technology of many Australian METS companies is in larger overseas markets.
“Australian METS companies are recognised leaders in provision of innovative technology in the mining industry and other markets can benefit from this.”
Techenomics is an example of an Australian-founded company which has made good overseas by using its innovative fluid management and condition monitoring services to benefit emerging markets in Indonesia, Mongolia and elsewhere.
Chris Adsett says many mining companies in emerging countries party to the TPP are seeking opportunities to enhance existing operations in order to reduce costs, improve productivity and limit their footprint on the environment and Australian technology has a major role in this process.
“The TPP could prove to be the catalyst for Australian-based METS companies to expand overseas and for existing providers like Techenomics to expand into new markets.
“Trade deals like this and the proposed free trade agreements with China and India make Australian mining equipment and services more competitive. Along with tariffs being reduced to zero by the TPP, the easier movement of people and new rules on state-owned enterprises (SOEs) have potential to provide substantial benefits.
“Smoothing the way to do business with large SOEs in many nations is needed because of their size, the lack of transparency in procurement and simplifying some of the complexities in becoming part of the supply chain opportunities,” Chris Adsett concludes.
For more information on Techenomics innovative fluid management and condition monitoring services, including oil analysis, contact Chris Adsett (email email@example.com) or Jim Ellison (email firstname.lastname@example.org)