Pi­ako MPs wel­come TPP trade deal

Pi­ako MPs Lind­say Tisch (Waikato) and Scott Simp­son (Coro­man­del) com­ment on last week’s sign­ing of the Trans-Pa­cific Part­ner­ship Agree­ment.

Matamata Chronicle - - Classified -

LIND­SAY TISCH

At the start of Fe­bru­ary, New Zealand hosted the sign­ing of the Trans-Pa­cific Part­ner­ship Agree­ment (TPP). Years of ne­go­ti­a­tion now open up 800 mil­lion po­ten­tial cus­tomers to our ex­porters. TPP is ex­pected to en­ter into force within two years, once coun­tries have com­pleted their do­mes­tic im­ple­men­ta­tion pro­cesses.

For New Zealand, this means that fol­low­ing sig­na­ture the Govern­ment will sub­mit the fi­nal text of TPP and a Na­tional In­ter­est Anal­y­sis to Par­lia­ment. The leg­isla­tive changes needed to im­ple­ment TPP will then go through nor­mal pol­icy and Par­lia­men­tary pro­ce­dures.

The 12 coun­tries in­volved in TPP make up 36 per cent of the world econ­omy. New Zealand sells around $28 bil­lion worth of goods and ser­vices to other TPP coun­tries each year. The agree­ment in­cludes Ja­pan and the United States, two of the three largest economies in the world, which suc­ces­sive gov­ern­ments have tried to get a free-trade deal with for 25 years.

Once TPP tar­iff com­mit­ments are fully phased in, our ex­porters will save around $274 mil­lion a year thanks to a re­duc­tion in the tar­iffs they cur­rently pay to get their prod­ucts into TPP mar­kets. Of­ten there are also other bar­ri­ers to trade, in­clud­ing im­port

re­stric­tions or com­plex doc­u­men­ta­tion re­quire­ments,

which are frus­trat­ing to ex­porters. Elim­i­nat­ing th­ese un­locks enor­mous op­por­tu­ni­ties for busi­nesses to ex­pand. This is a big deal for a small coun­try such as New Zealand that re­lies on trade to grow its econ­omy. It fur­ther builds on the Govern­ment’s wider plan to di­ver­sify and strengthen our econ­omy, sup­port more jobs, and pro­vide more op­por­tu­ni­ties for Ki­wis to get ahead.

The Govern­ment will be run­ning a se­ries of road­shows through­out the coun­try in the com­ing months, for in­ter­ested mem­bers of the pub­lic to learn more about TPP, and to as­sist busi­nesses to iden­tify and plan for new ex­port op­por­tu­ni­ties when TPP comes into force in around two years.

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 agree­ment with China that th­ese fig­ures are likely to be un­der­es­ti­mated. Two-way trade with China ex­ploded af­ter that deal was signed.

The op­por­tu­ni­ties that TPP presents are go­ing to be a real boost for the Kiwi econ­omy.

‘‘Years of ne­go­ti­a­tion now open up 800 mil­lion po­ten­tial cus­tomers to our ex­porters.’’ ‘‘As an ex­port ori­ented small trad­ing na­tion not to be part of a part of ma­jor free trade agree­ment would be ab­so­lutely un­think­able.’’

Scott Simp­son

I am proud to sup­port the sign­ing of the Trans Pa­cific Part­ner­ship (TPP).

It is a sig­nif­i­cant step in achiev­ing a bet­ter deal in trade for our coun­try. In the words of for­mer Labour Prime Min­is­ter He­len Clark it would be ‘‘un­think­able’’ for New Zealand to be ex­cluded.

As an ex­port ori­ented small trad­ing na­tion not to be part of a part of ma­jor free trade agree­ment would be ab­so­lutely un­think­able for New Zealand.

Our hospi­tals and schools come from the wealth cre­ated on our farms, fac­to­ries and ser­vices. As New Zealan­ders we all want im­prov­ing ser­vices but we have to pay for them.

Those ser­vices come from the taxes that are gen­er­ated by in­creased trade and prof­its many of which come from our very pro­duc­tive re­gion.

Af­ter the sign­ing, the fi­nal TPP text and to­gether with a Na­tional In­ter­est Anal­y­sis, there will be a full Par­lia­men­tary ex­am­i­na­tion by the For­eign Affairs, De­fence and Trade Se­lect Com­mit­tee.

Dur­ing this time, the pub­lic will be in­vited to make sub­mis­sions as part of the con­sul­ta­tion process as it should be.

Scott Simp­son

Lind­say Tisch

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