TPP11 starts December 30 – what it means for you?

In Customs Posted December 11, 2018 at 2:39 pm
By Alex McNairn


What is TPP11?

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP11 is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, based on the goals of the Transpacific Partnership prior to the USA’s withdrawal.

The eleven countries’ combined economies represent 13.4 percent of the global gross domestic product, approximately US$13.5 trillion, making the TPP11 the third largest free trade area in the world by GDP after the North American Free Trade Agreement and European Single Market.

The TPP11 comes into force for the initial six ratifying countries on 30 December 2018 with the goal that by the end of 2021 the majority of products will be duty-free under the agreement.

The agreement will initially only benefit trade in goods and services between Australia, Japan, Canada, Mexico, New Zealand, and Singapore because the other members are yet to ratify the agreement.

What does it mean for you?

  • Immediately lowering the 5% tariff on most goods from Mexico and Canada
  • Provide tariff relief by eliminating 98 percent of tariffs in the TPP11 region
  • Easier certification of origin requirements making it easier to utilize than other existing Free Trade Agreements.
  • There is also the potential for more benefits to come as new countries can join the agreement. Taiwan, Thailand, Indonesia, and the Philippines have all expressed interest and Australia continues to lobby the US to bring it on board.

Phasing rates:

Whilst most products will be duty-free from the 30th of December, there are some products that will be phased to duty-free over the next three years.

  • 30 December 2018 – TPP11 commences with an initial round of rates cuts
  • 1 January 2019 – the second round of rates cuts

Things to note:

  • A certificate of origin is required, however, unlike other FTAs the certificate of origin does not need to be provided by a government authority. The TPP11 takes a flexible approach whereby certification can be provided by the exporter, producer or importer of the goods.
  • The ease of use may mean cost saving for importers utilising other free trade agreements where an official government-endorsed certificate is required.
  • The TPP does not require direct shipment. If the goods are shipped via a country which is not a party to the agreement the goods must remain under customs control. This is especially important to note for goods claiming Mexican or Canadian origin which have been shipped from the USA.


In the meantime, get in touch with me or your Customs Broker on if you would like to discuss how TPP11 affects you. To ensure you don’t miss a freight forwarding or customs communication that may affect you please subscribe below.

Get in touch with our team to learn Magellan services like international freight shipping, air freight cost, project logistics, break bulk shipping and more.

Memberships & Accreditations

Magellan is proud to support

Magellan is proud to support














Los Angeles