Major hurdle cleared for Pacific deal
After years of negotiation and controversy the reworked TransPacific Partnership trade deal is poised to come into effect, promising a multi-billion dollar boost to exporters and the economy.
Now known as the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership), the deal was confirmed yesterday after the required six nations signed up to the trade pact.
Trade and Export Growth Minister David Parker said that triggered the 60-day countdown for the agreement.
Parker described it as a ‘‘momentous’’ day for New Zealand and world trade, and said the CPTPP had become even more vital now the World Trade Organisation was in such a parlous state. ‘‘It has benefits that will spread throughout the economy to every person in New Zealand from the factory floor to the farm owner to all the other service industries that rely on our export industries,’’ Parker said.
A National Interest Analysis put the boost to New Zealand at anywhere between $1.2 billion and $4b a year.
Studies showed export industries paid higher wages because they got a premium price for what they sold to the rest of the world, Parker said.
The CPTPP nearly foundered when United States President Donald Trump withdrew from the deal. America’s inclusion as the world’s biggest economy had been the major driver for other nations, including New Zealand.
But Japan’s inclusion kept the negotiations afloat.
Parker said getting the deal across the line sent a powerful international signal but its benefits would also reach every part of New Zealand.
Examples included substantial reductions on tariffs on fish products going into Mexico and beef exports to Japan.
The CPTPP would be New Zealand’s first free trade deal with Japan, as well as with Mexico and Canada. Canada and Australia joined Mexico, Japan, Singapore and New Zealand in ratifying the 11-country Pacific Rim deal. Yet to ratify are Brunei Darussalam, Chile, Malaysia, Peru and Vietnam.