The revamped TPPA, now known as the Comprehensive and Progressive Trans-Pacific Partnership, is one step closer, with New Zealand set to see benefits from December 30, the Government says.
Trade Minister David Parker announced today the CPTPP has been made official by the required six nations, triggering a 60-day countdown to the first round of tariff cuts.
Canada, Australia, Mexico, Japan, Singapore and New Zealand ratified the deal, with Brunei, Chile, Malaysia, Peru and Vietnam also part of the 11 country trade agreement.
Mr Parker said the CPTPP should see the export market with Canada grow.
"There will be immediate duty free access for wine, processed meats, wool, forestry and fisheries products, while beef tariffs and quotas will be eliminated over six years," he said.
He said over 80 per cent of New Zealand investment in the CPTPP was not covered by compulsory Investor-State Dispute Settlement (ISDS) clauses.
ISDS clauses has caused concern, as it could allow foreign corporates to sue our government in a foreign court if they felt they had been disadvantaged by New Zealand law or changes to those laws.
The Green Party last week reaffirmed their opposition to the partnership, saying the "presence of ISDS has a chilling effect on our national sovereignty".
"It means big international corporations can challenge our government if we make policy changes that affect their profits. We're proposing amendments to the Bill that would prevent countries like America joining the CPTPP unless they agree not to use ISDS on New Zealand," Green MP Golriz Ghahraman said.
National Todd McClay gave his party's support to the CPTPP after it passed in Parliament last week, saying "National was right to push ahead with the original deal in the face of significant opposition".
"New Zealand has been a leader in pushing for this revolutionary deal since 2008, and was the first country to push for the TPP to live on after the US withdrew. Despite slight changes, the revised-TPP remains a high-quality deal. That is why the National Party pledged its parliamentary support to help get the agreement over the line."
The Government expect the key outcomes of the deal to include:
- Buttercup squash going into Japan will have its tariffs stopped, meaning 30 NZ companies will have an average saving of about $1.5 million, an average of $50,600 per grower.
- Onion tariffs into Japan will also go, with the average tariff of $19,500 for 90 New Zealand growers removed within six years.
- Beef export tariffs to Japan to reduce from 98.5 per cent to nine per cent over 16 years.
- Honey into Japan will have its tariff of 25.5 per cent removed over eight years.
- Tariffs on NZ wine will be removed in CPTPP markets.
- Tariffs will be eliminated on fishery exports, summer fruits such as cherries, radish and carrot seeds, and kiwifruit and avocado.
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