Trade deal sealed with extra ‘side letters’
''It gives our exporters new opportunities ... it preserves the unique status of the Treaty of Waitangi and it protects the Government's right to regulate in the public interest."
Trade Minister David Parker
After years of stalling and controversy, the Comprehensive and Progressive Trans-Pacific Partnership (CPTTP) has finally been signed in Chile, with Trade Minister David Parker describing it as a ‘‘fair deal’’.
The agreement, formerly known as the TPPA when the United States was part of negotiations, brings together 11 countries whose combined economies total 13.5 per cent of the world’s GDP.
But not all Government support partners are pleased with the news. The Green Party called on all political parties to rule out signing any trade deals like it in the future.
The Greens’ trade spokeswoman, Golriz Ghahraman, said no future governments should sign agreements with investor-state dispute settlements (ISDS) because they were ‘‘a threat to our sovereignty’’.
Parker revealed New Zealand signed a number of side letter agreements that exclude ISDS, while in Santiago, which have the same treaty-level status as the CPTPP.
Those side letters have been signed with Australia, Brunei, Malaysia, Peru and Vietnam.
‘‘This is a fair deal for New Zealand. It gives our exporters new opportunities in key markets like Japan, it preserves the unique status of the Treaty of Waitangi, and it protects the Government’s right to regulate in the public interest.’’
But Ghahraman said it was disappointing the side letters were with ‘‘relatively small nations’’ while the likes of Japan and Chile were ‘‘still free to sue our government for access’’.
Prime Minister Jacinda Ardern said a process still needed to be gone through before the CPTPP came into effect, which includes a select committee process and parliamentary debate.
‘‘There’s a lot more still to do,’’ Ardern said.
Ardern said she was ‘‘pleased with the progress we’ve made there’’ in reference to the ISDS side letters.
‘‘We didn’t get as far as we would have liked but we made a huge difference to the way they will apply.’’
Alongside the agreement, New Zealand has also joined Canada and Chile in issuing a joint declaration on fostering progressive and inclusive trade.
‘‘This joint declaration is an acknowledgement of public concerns about ISDS. Along with Canada and Chile, we have pledged to work together to promote transparency,’’ Parker said.
‘‘It’s great to see growing international acknowledgement and understanding that we need trade that works for everyone.’’
The declaration affirmed the right of each country to regulate to achieve legitimate public policy objectives in such areas as health, safety and the environment, Parker said.
The signing of the CPTPP is another step along the road to its full implementation – it still has to be ratified by six countries.
The 11 countries involved in the CPTPP are New Zealand, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore and Vietnam.
The Government will need the support of the Opposition to pass any legislation necessary for the agreement, which the National Party has committed to.
Horticulture NZ says access to Japan under the CPTPP is a big win for its industry.
‘‘For the first time, New Zealand will gain preferential access to Japan, the world’s third-largest economy, with immediate kiwifruit tariff reductions worth $26 million,’’ Horticulture NZ chief executive Mike Chapman said.
‘‘Kiwifruit from Chile has had the advantage in Japan until now, so this is really good news for New Zealand horticulture.
‘‘Apple tariffs will be eliminated over 11 years and this will put us on a level playing field with Australia, which already has preferential access to Japan,’’ Chapman said.