Full details of revised TPP show trade deal worth $4b to economy

The full details of the revised TransPacific Partnership trade agreement have been released and New Zealand’s trade department says the economy will grow by as much as $4 billion thanks to the deal.

The Government yesterday made public the controversial 11-country free trade deal’s text, with an analysis of its predicted effects.

The Ministry of Foreign Affairs and Trade (Mfat) estimates the deal will add between $1.2b and $4b to NZ’s real GDP — adding up to 1 per cent on to the value of the economy.

The dairy industry alone is expected to save nearly $86 million in tariffs and exporters would save about $200m in reduced tariffs to just Japan once they are fully realised.

After the United States pulled out of the original TPP pact early last year, the remaining 11 member countries — including New Zealand — reached a new agreement last month.

It’s now called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“The reasons for New Zealand becoming a party to the CPTPP are both economic and strategic,” Mfat said.

“[It will] provide significant benefits for New Zealand goods exporters across a range of sectors.”

ExportNZ said exporters appreciate the progress made towards signing the CPTPP and the transparency around the deal’s final version.

Executive director Catherine Beard said the deal had successfully dealt with some remaining public concerns about investor dispute settlement, intellectual property protection and the operation of Pharmac.

“At the same time, core elements of the deal around tariff reduction and non-tariff barriers have been retained,” Beard said.

It represented significant extra income and opportunity for exporters, which would also lead to new jobs, many in the regions — for example in dairy, horticulture, seafood, meat processing, and timber.

“New Zealand being part of the CPTPP agreement will ensure our businesses are competitive and have access to markets on a level playing field, not only with regard to our goods exports but also with regard to services,” Beard said.

Delays in releasing the text to the public have been blamed on translation disputes between members.

The original deal was met with heavy protest and Mfat was yesterday keen to point out the “significant differences” between the two deals — particularly in areas of controversy.

The much maligned investor-state dispute settlement (ISDS) clauses allowing companies to sue Governments over policies had been significantly narrowed, Mfat said.

“Overall the safeguards mean New Zealand’s Government cannot be successfully sued for measures related to public education, health and other social services.”

Trade Minister David Parker says 22 items have been suspended from the original deal, including changes to intellectual property law and taxpayer subsidised medicine.

Full protection for government drug-buying agency Pharmac has been introduced, extension to copyright and patent lengths has been dropped, and a clause ensuring government procurement isn’t affected.

The deal also includes protections for the Treaty of Waitangi’s unique status and consultation with Maori.

Depending on the legal procedures of other member countries, the deal could come into force by the end of the year, Mfat said.

Australian Trade Minister Steve Ciobo said itcut more than 98 per cent of tariffs in a trade zone with a combined GDP of A$13.7 trillion ($14.7t). It’s made up of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.— NZN, AAP

CPTPP . . . will ensure our businesses are competitive and have access to markets on a level playing field. Catherine Beard, ExportNZ