Australia’s mining equipment, technology and services (METS) and oilfield services sectors in countries like Vietnam, Malaysia, Mexico, Chile and Peru will gain strong benefits. There will be major new commercial opportunities for Australia’s METS service providers, including through:
- Mexico’s liberalisation of its energy sector, which, for the first time, will allow Australian companies to be able to bid to participate in the exploration, production, processing and distribution of oil, gas and geothermal resources.
- Brunei Darussalam and Vietnam locking in future reforms to local content regimes, or otherwise committing to a level playing field between Australian and foreign suppliers providing goods and services in the mining, oil and gas sectors.
- New rules on large state-owned enterprises like PETRONAS, PEMEX, VINACOMIN and PETROVIETNAM, which will help ensure that Australian goods and service providers can compete fairly for contracts.
- Prohibitions on the introduction of new export taxes and commitments for the elimination of existing export taxes in Malaysia and Vietnam, providing greater certainty for Australian mining and energy companies operating in these countries.
The TPP’s new rules on state-owned enterprises (SOEs) will level the playing field between Australia’s privately-owned mining, oil and gas companies and the large SOEs that dominate these sectors in some TPP countries. The TPP will help ensure that the member countries do not provide financial support to their SOEs that would give them an unfair advantage over their Australian competitors.
Streamlined investment processes and greater protections
Greater investment protections and streamlined processes will help propel investment by Australian miners, oil and gas companies, METS and oilfield goods and service providers in TPP countries.
TPP countries have committed to not introducing new foreign investment screening regimes or have extended higher preferential investment screening thresholds to Australian investors. Australian investments into Canada of below C$1.5 billion (currently AUD$369 million) will be exempt from investment screening processes.
The TPP will also promote further growth of foreign investment in resources and energy in Australia by increasing the screening threshold at which private foreign investments in the mining and energy sectors are considered by the Foreign Investment Review Board (FIRB). The threshold will be raised from