Deal will make a difference to us
As a small country relying on exports, New Zealand can’t get rich selling things to ourselves.
That’s why the 800 million customers in the recently completed Trans-Pacific Partnership Agreement will make all the difference.
It will build on the Government’s wider plan to diversify and strengthen our economy, support more jobs, and provide more opportunities for Kiwis to get ahead.
As the largest economy in the world, the United States is responsible for over a quarter of all household consumption in the world. Japan is the third largest economy and TPP includes both of them. New Zealand has been trying to get free trade agreements with these two countries for 25 years.
The 12 countries involved in TPP account for 36 per cent of the world economy. Last year, New Zealand sold $28 billion worth of goods and services to the other 11 countries in TPP. With these numbers in mind, it’s no surprise TPP is New Zealand’s biggest ever trade deal.
TPP will save New Zealand exporters around $259 million a year in tariffs they currently have to pay just to get their products into these markets.
That’s money they can now spend growing their businesses, and employing more New Zealanders on higher wages.
Take the New Zealand dairy industry for example. This deal will save them $102 million on the $4.6 billion worth of products exported to TPP countries.
Another industry set to benefit is New Zealand meat – $2.3 billion worth is sold to TPP countries and this agreement will save us around $72 million in tariffs.
Tariff savings are just the start of the benefits this trade agreement offers to New Zealand. Barriers to access are often even more important to exporters. Eliminating these barriers will unlock enormous opportunities.
All this is expected to be worth at least $2.7 billion a year to New Zealand by 2030. We know from the free trade deal with China these figures are likely to be underestimated. Two-way trade with China exploded after that deal was signed.
Now TPP negotiations have concluded people will see many of the concerns raised previously have not been reflected in the agreement.
To touch on a few of these concerns we have not given up our right to govern our own country and New Zealanders will not pay more for medicines.
An article on October 7 touched on a recent petition. Readers may have been led to believe that the petition sought to restrict the movements of all heavy truck traffic in and around Matamata. Petition organiser Alan Dowling feels this is completely wrong. The petition stipulated the exclusion of ‘local’ traffic which would include trucks servicing Matamata businesses or those using local facilities (i.e. overnight stay in motels).
He says the proposed restricted area for trucks involved only part of Broadway thus ‘local’ trucks could, within reason, carry on as usual. Entry and exit would still remain at either end of town. The petition was aimed solely at those trucks moving directly through town (estimated to be about 600).
The number for placing complaints with the NZ Transport Agency was also wrong, it should have read 0800 4Highways.