RCEP will ‘add certainty’ for exporters

WELLINGTON: After eight years and 30 rounds of negotiations, the Government has put pen to paper on what has been called the world’s largest freetrade agreement.

New Zealand is one of 15 AsiaPacific countries to join the Regional Comprehensive Economic Partnership (RCEP) trade deal.

Trade and Export Growth Minister Damien O’Connor said the country had more to gain than just regulation around import and export of perishable goods.

The agreement set down ‘‘rules for trade with a third of the world’s population’’.

‘‘It’s been a long process — eight years to get here — and we had hoped that India might be at the table. They’ve pulled back at the last moment but the doors are open for them to join . . . for the rest of us, the other 15 countries, there is some certainty, some structure to build on.’’

He would not say when the $2 billion promise would be fulfilled.

The agreement had to be ratified by the Asean countries, he said.

‘‘We hope that it will be in place in 2022; that’s [when] the countries will have ratified [it].’’

But former senior government trade deal negotiator Charles Finny said the agreement meant nothing in the short term, as it had yet to be ratified.

He said the deal made way for a common set of rules and dispute settlement mechanisms that would be ‘‘very positive for such a large part of the global economy’’.

‘‘It’s going to add certainty for New Zealand exporters; it’s a good thing.’’

Mr Finny would have liked to have India in the deal, but said it would result in growth and that was where the $2 billion for New Zealand would come from, as opposed to tariff advantage.

‘‘This is the first freetrade agreement involving China, Korea and Japan. That’s a very positive thing and it will lead to some growth in the region.’’

Mr Finny said although commentators in the US and Europe had been insinuating this was a ‘‘Chineseled initiative, actually, this is an Aseanled initiative — it used to be known as Asean Plus Six’’.

‘‘China has been a key player at the table. The rules of origin will make it more difficult for those in the US and elsewhere who are trying to decouple from China, that’s true . . . this is an agreement that was not essentially China’s idea; it is an Aseanled agreement.’’

He said China had problems with each of the measures implemented. Some were still uncertain, but it was something to watch closely.

‘‘Unfortunately, some of the major players right now aren’t necessarily abiding by international trade rules. The US is probably the most guilty party, and unfortunately the WTO dispute settlement mechanism isn’t functioning properly.’’

He said the idea was that New Zealand and China would be equal players despite holding different views on some issues. — RNZ