Japan raises the TPP Stakes

by | Jul 30, 2013 | Uncategorized | 0 comments

Remove

Japan’s arrival at the negotiating table of the Trans Pacific Partnership (TPP) in Kota Kinabalu, Malaysia last week marks a remarkable sea-change in Japanese policy and is full of consequence for New Zealand.

Japan has been the only major economy in Asia with which New Zealand neither had an FTA or a negotiation underway. This changed back in April when Prime Minister Abe’s government announced that it wanted to join the twelve other economies in TPP.

New Zealand’s economic relationship with Japan is well established and encompasses not just two-way trade but also investment.

While New Zealand has for many years done profitable business in Japan, including in heavily protected sectors like dairy and beef, there has been a sense in recent years that there was a lack of momentum. This was certainly not helped in Japan’s case by an economy that continually failed to fire, and in New Zealand’s case by increasing attention focused on China, which is seeing Japan’s market share in New Zealand steadily decline.

TPP will address a number of key issues, which determine Japan’s economic competitiveness. Greater openness in the domestic economy will stimulate further growth in demand, as protected sectors including agriculture are subject to reform. Change will not happen overnight but the direction is clear. In the case of Japanese agriculture, which has enjoyed high levels of subsidy and protection in the past, this is unprecedented.

The point is that Japan’s association with TPP effectively changes the strategic calculation for New Zealand and raises the stakes of TPP’s success.

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,...