The New Zealand International Business Forum (NZIBF) today congratulated the Japanese Government on Japan’s formal association with the Trans Pacific Partnership (TPP) negotiations underway in Kota Kinabalu, Malaysia.

“Japan is a major economic partner for New Zealand and this important relationship can only be further strengthened by the improved rules for trade and investment that TPP will bring,” said NZIBF Executive Director, Stephen Jacobi.

Japan was admitted to the negotiation in April but Japanese negotiators were only able formally to take up their seat at the negotiating table once domestic consultation procedures in the TPP economies were complete.

“Japan’s entry into TPP further enhances TPP’s potential as a pathway to wider trade liberalization in the Asia Pacific region. Until recently Japan was the only economy in North Asia with which New Zealand neither had an FTA nor a negotiation underway. Now New Zealand is negotiating with Japan in both TPP and the Regional Comprehensive Economic Partnership (RCEP). That is good news for New Zealand exporters and importers and for New Zealand business as a whole.”

Japan is New Zealand’s fourth largest trading partner, with two-way trade worth NZ$6.1 billion in 2011.

Research undertaken by the East-West Center, in Honolulu, states that the TPP could add around $2.1 billion to the New Zealand economy by 2025. Those gains are increased to around $5.1 billion once Japan is added into the mix, driven largely by exports jumping 6.8% above baseline.

Mr Jacobi said NZIBF had already undertaken significant discussion with counterparts in Japan.

“Discussions with Japanese business organizations in Tokyo two weeks ago underlined a strong alignment of interest in TPP. We plan to build on this discussion in coming months. There is also a sense that the economic relationship with Japan while significant has lacked momentum in recent years. TPP is a chance to change that equation and we look forward to this negotiation with Japan.”

Note: A copy of the East-West Center study is available at http://www.iie.com/publications/pb/pb12-16.pdf