Japan entry radically improves strategic calculation of TPP, says Business Forum

by | Apr 22, 2013 | Media Releases | 0 comments

Remove

Japan’s prospective entry into the Trans Pacific Partnership (TPP) negotiations announced over the weekend is being welcomed by New Zealand business interests.

“By any calculation Japan’s entry radically alters the strategic calculation of TPP.  This is a game changer ? Japan’s inclusion in the TPP underlines negotiation’s value as a pathway for further liberalisation in the Asia Pacific region and will enable New Zealand to address longstanding market access issues in the Japanese market,” said NZ International Business Forum Chairman Sir Graeme Harrison.

Sir Graeme was reacting to Trade Minister Tim Groser’s announcement on behalf of the TPP partners that that Japan would join the TPP negotiations from July.

“We congratulate the governments of Japan, New Zealand and other TPP participants on reaching this point and look forward to Japan’s involvement at the negotiating table. We also welcome the assurance that Japan is prepared to meet the high level of ambition for TPP.”

Sir Graeme also drew attention to the significant economic gains expected from TPP.

“Economic modelling suggests that adding Japan would increase the income gains from TPP by US$149 billion per year by 2025.  The impact on New Zealand’s outcomes is, unsurprisingly, huge. By 2025, New Zealand’s income gain increases from US$2.9 billion to US$4.1 billion. New Zealand’s change in exports jumps from 4.7% to 6.8% above baseline.

“Even if the figures are half right, these are potentially significant gains which cannot be left on the table. Interestingly the greatest gains are likely to go to Japan itself as it lowers trade and investment barriers: incomes are forecast to rise by US$106 billion, or 2 per cent of GDP, by 2025, and exports by 12 per cent.

“All this of course depends on a successful outcome to the TPP negotiations and to the 12 partners sticking to the bold vision that has been set.  We urge governments to do what is necessary to bring the negotiations to a timely and robust conclusion,” concluded Sir Graeme.

0 Comments

REGISTER WITH TRADE WORKS

Register to stay up to date with latest news, as well as saving and discussing articles you’re interested in.

 

Remove

 

Latest News

LAMENTATION DAY

When President Trump spoke in the White House Rose Garden to launch his wrecking-ball “fair and reciprocal tariffs”, there were some in the audience wearing hard hats.  While this was doubtless to show support for the move amongst hard-working Americans, maybe...

BUSINESS FORUM WELCOMES INDIA FTA NEGOTIATIONS

Media release, 17 March 2025 The NZ International Business Forum (NZIBF) welcomes the launch of free trade negotiations with India, announced in Delhi, and is particularly pleased that these will proceed on a comprehensive basis. “There is enormous value to be gained...

Playing the long trade game with India

Prime Minister Luxon is at last making his visit to India with a large business and community delegation.  We wish them well in expanding and deepening the relationship with India.  The reasons for doing so we have explained previously. Our Government’s...

SUBMISSION TO THE MINISTRY OF FOREIGN AFFAIRS AND TRADE

PROPOSED GREEN ECONOMY JOINT WORKING GROUP WITH CHILE AND SINGAPORE MARCH 2025 Introduction This submission is made on behalf of the New Zealand International Business Forum (NZIBF), whose members are listed at Annex A[1]. NZIBF is a forum of senior business leaders...

SOUTHERN LINK REVISITED SEMINAR, SEPT 2024

On 24 September 2024 a stakeholders seminar was held in Auckland to reassess the Southern Link concept, five years after a large conference kickstarted focused discussion of the idea (before Covid intervened).   This report of the seminar discussions...

T Day has come

STOP PRESS – NOT SO FAST.  This post deals with the tariffs President Trump announced on 1 February he would impose on Canada, Mexico and China.  By 4 February he announced imposition of tariffs on Canada and Mexico would be suspended for 30 days (until 5 March). ...

Back to the future?

The end of 2024 has trade advocates reaching back to their 2016 taking points as an Administration of a depressingly protectionist hue prepares to take office in the United States, once the global champion for trade liberalisation.  We do not know for now what,...