After the deal: 90 days for scrutiny
Government has PR campaign ready to go but hoped-for gold-plated agreement on dairy fails to happen Existing New Zealand FTAs What happens next?
Ahistoric TPP deal among 12 countries was set to be finalised early today after five tough years of negotiations and a marathon final session in Atlanta.
The Trans Pacific Partnership will deliver New Zealand its long sought after free-trade deal with the United States, the largest economy in the world, and Japan, the thirdlargest economy, as well as Canada, Mexico and Peru.
Other TPP players are Australia, Singapore, Brunei, Chile, Vietnam and Malaysia, all of whom New Zealand has dealings with.
New Zealand already has a free-trade agreement with the world’s second-largest economy, China, which is not Australia 1983 Singapore 2001 Thailand 2005 P4 (NZ-Singapore-ChileBrunei) 2005 China 2008 Malaysia 2010 Asean 2010 Hong Kong 2011 Once the Trans Pacific Partnership talks conclude, New Zealand and the 11 other countries must tick several boxes before the agreement can be brought into force.
Under a rule set by the United States, any agreement cannot be signed until 90 days after negotiations end, to allow time for full consideration of its pros and cons.
The same rule also says the part of the TPP.
Trade Minister Tim Groser will be heading back to New Zealand from the United States today to begin the hard sell on the deal, which has to be turned into text and released within 30 days.
It is understood the Government has a public relations programme ready outlining in detail how it believes New Zealand will be better off in the deal, not outside it.
It does not intend to leave a vacuum for the next month for opponents to fill.
The most contentious part of the deal is the Investor State Dispute Procedure, however Mr Groser has remained confident the detail of the agreement will allay Taiwan 2013 South Korea 2015
Gulf Co-operation Council (concluded but not signed)
Russia-BelarusKazakhstan free-trade agreement (suspended after agreement’s full text must be made available to the public after 30 days.
In New Zealand, the Ministry of Foreign Affairs will provide a report to the Cabinet on the costs and benefits.
The Cabinet will then decide whether to approve the agreement.
Once the Cabinet approves the deal, the full text will be tabled in Parliament.
It will then be scrutinised by a parliamentary committee,
Hnzherald.co.nz To read previous coverage go to tinyurl.com/TPPnzh Russia annexed Crimea)
India — slowed to virtual halt by India
Regional Comprehensive Economic Partnership RCEP — under negotiation among 10 Asean states plus China, India, Japan, South Korea, Australia and New Zealand. which will hear submissions from the public.
New Zealand will likely have to change its laws to bring them into line with the agreement. This would probably be done through a single piece of legislation, and was likely to include changes to copyright, tariff and patent laws.
The bill would provide a chance for a parliamentary debate on the agreement, but only on the parts of the law which need to be changed. people’s fears on that score.
It is thought New Zealand has had to settle for something akin to a bronze deal on dairy products rather than the gold-plated one it insisted early in the negotiations that it would get.
But the overall deal will be sold to the public on the basis of better-than-hopedfor gains in other sectors.
The Government has already said an increase in costs for pharmaceuticals as a result of IP changes under TPP would be met by the Government, not patients.
Mr Groser, a former professional trade negotiator, has played a pivotal role in the negotiations, led by US Trade Representative
This process could not alter the text of the agreement.
After the bill passes and any other policies or regulations have been brought into line with the agreement, the Government will ratify the deal.
Once other countries have followed a similar process, the agreement will come into force.
There is no set timeframe for this to happen, though Japan has proposed a minimum two-year limit. Mike Froman. The three most difficult issues in the end were the patents on biologics, medicines made from living organisms, rules of origin for vehicles, and dairy access.
Before talks on dairy intensified yesterday, he told the Herald the negotiations had “the smell of a situation we occasionally see which is that on the hardest core issues, there are some ugly compromises out there”.
That meant everyone had to eat “dead rats”.
In the event of a failure at Atlanta, the talks could have gone another round at Apec in Manila, but the longer they dragged on, the closer it would get to the United States presidential contest and the more difficult it could be to get a deal through the US Congress.
MFAT completes a National Interest Statement, which spells out the costs and benefits of the deal.
Cabinet decides whether to approve the TPP.
The Government tables the full text in Parliament.
The trade deal and the National Interest Statement is referred to the Foreign Affairs and Trade Committee, which hears submissions and produces a report and possibly recommendations.
A bill is introduced to Parliament to bring New Zealand laws into line with the TPP. This includes a public consultation process.
Regulations and policies not requiring law changes are also changed.
When the bill has passed into law, the Government ratifies the agreement.
The agreement comes into force once other countries have also completed a similar process.