The Comprehensive and Progressive Trans-Pacific Partnership (CPTTP) has 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% of the world’s GDP. The countries involved in the CPTPP are New Zealand, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore and Vietnam.
Parker revealed New Zealand has signed a number of side letter agreements with Australia, Brunei, Malaysia, Peru and Vietnam.
The CPTTP gives New Zealand’s exporters new opportunities in key markets like Japan and it protects the Government’s right to regulate in the public interest, said Parker.
Prime Minister Jacinda Ardern said some process was still needed before the CPTPP comes into effect, which includes a select committee process and parliamentary debate. The signing of the CPTPP is another step along the road to its full implementation – it still has to be ratified by six countries.
Under the originally proposed TPPA agreement, which dissolved when US President Donald Trump pulled America out of the deal, there was lots of protest from both the public and politicians in New Zealand. However, Labour changed its position when it got into Government and negotiated some changes around ISDS clauses, and also found a way to put a ban on foreigners buying New Zealand land.
Catherine Beard, Executive Director of ExportNZ says this agreement is vital for the export sector and gives our exporters competitive access to some new high value markets like Japan, Canada and Mexico. “The tradeable sector creates three quarters of a million jobs and this new trade deal will add to that. Food and beverage exports can be difficult without trade deals and the CPTPP will help reduce compliance costs for these exports as well as reducing tariffs,” says Beard.
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.
