AsiaPacific trade pact agreed
WELLINGTON: New Zealand and 14 other AsiaPacific countries have agreed on terms for one of the world’s largest trade pacts, but they say India still has ‘‘significant outstanding issues’’ before it will be ready to also sign on.
Members said the deal would be signed next year after the 15 countries, without India, reached agreement in Bangkok on the text and market access issues.
India decided not to agree to it yet, due to differences over tariffs, its trade deficit with other countries and nontariff related barriers.
‘‘This has been seven years in the making,’’ Prime Minister Jacinda Ardern said.
‘‘And of course, we have freetrade arrangements with the majority of the countries who are part of this agreement.
‘‘But what it does do is create a simplicity by bringing all of those nations into a single agreement and that has enormous benefit to New Zealand exporters.’’
Speaking with reporters on Tuesday night, Ms Ardern said she did not sense the agreement ran the risk of falling away in the process.
‘‘But it has been, I think, growing in impatience to see a conclusion. We saw that when Singapore was hosting those negotiations and we continue to see a real desire to see it concluded, and I think now we’re getting to the point where we will very soon.’’
The ChinaUS trade war and rising protectionism had given new impetus to years of negotiations on the Regional Comprehensive Economic Partnership (RCEP), which brings together the 10member Association of Southeast Asian Nations (Asean), China, Japan, South Korea, Australia and New Zealand.
The leaders’ statement said the completion of the RCEP negotiations will demonstrate ‘‘our collective commitment to an open trade and investment environment across the region’’ against the backdrop of a fastchanging global environment.
Minister of Trade and Export Growth Damien O’Connor told reporters the deal would create structure with rules of trade and also give certainty for businesses.
‘‘So that certainty and the structure [the RCEP agreement] will create is the way forward and the growth opportunities that New Zealand should enjoy. If at some stage in the future India say that they can’t join up, then the 15 other nations are committed to move on.
‘‘I think at the signing it might not give the immediate benefits, but longterm it probably has the greatest potential.’’
The Asean nations opened the door to India potentially joining them later, if the issues it has with the deal are resolved.
But Indian Prime Minister Narendra Modi said that he had to take into account the interests of Indian people.
‘‘When I measure the RCEP Agreement with respect to the interests of all Indians, I do not get a positive answer,’’ Mr Modi said in a speech in Bangkok, according to a government note. — RNZ