TPP – game on !

by | Jul 3, 2015 | Trade Working Blog, Uncategorized | 0 comments

Remove

Now that the US Congress has finally given President Obama his much longed for fast track trade promotion authority, negotiators can get back to the complex task of completing the Trans Pacific Partnership (TPP).

New Zealand can claim a share of TPP’s parentage.  A founder member along with Singapore, Chile and Brunei of the original “P4” agreement, New Zealand was also at the forefront of even earlier efforts to link up the more liberal minded trading nations in the Asia Pacific region.  In the mid to late 90s the United States was part of those emerging discussions.  How long it has taken to get to where we are today!

As well as being eternal trade optimists, New Zealanders are also mindful of the need to integrate more closely in the Asia Pacific region.  Our high-quality FTAs with China, ASEAN, Taiwan, Korea are the result of a well thought-through and well executed internationalization strategy.  The United States and Japan are missing pieces. Our economy is small and distant from world markets.  Trade – exports and imports – are our lifeblood – it’s what makes possible the successful, smart and developed economy that we enjoy.  Yet we are an oddity amongst other developed economies because our largest export earners are natural resource based products – dairy, meat, horticulture, wood, seafood. So clearly the most important issue for us is ensuring that these products benefit from the comprehensive removal of trade barriers in TPP.

New Zealand’s economy is also changing – services, ICT, the creative sector,  the ‘weightless economy’ – are all important and growing sectors.  So we need also to ensure TPP promotes the market-based innovation and commercial expansion necessary to fuel these sectors’ continuing development.   We know too that business models are changing so we share with others the need to optimize supply chains and to ensure we can participate effectively in regional value chains and networks.

When it comes to ratifying the completed agreement – and when we finally get to see the treaty text – we like others will be looking to ensure that our key interests are addressed and any risks minimized.  We subscribe fully to the founding vision of TPP as an ‘ambitious, high-quality and comprehensive’ agreement. Not all sectors require the same treatment, but none should be left out.  That means especially agriculture.  We will want to pay careful attention to the detail of the rules.  If there is provision for investor-state dispute settlement, we will want to see the detail of safeguards around the right to regulate, especially on environment and public health.  If intellectual property provisions go beyond what is currently the international norm, we will want to see that innovation is not penalised.  If there are requirements about medicines purchasing policies, we will want to see that these apply equally to all economies (including the United States) and that citizens continue to have affordable access to the medicines they need.

New Zealand is already an open economy.  We have high standards of regulation and a sound judicial system.   We are not expecting the adjustment from TPP to pose significant challenges.  We pursue agreements like TPP to provide the best possible environment for trade and investment and sound rules for the operation of markets which also reflect our country’s values and interests.  If TPP can deliver on its founding vision, we hope to be a proud parent of a new economic instrument which will deliver value for citizens and businesses alike.

This post was prepared by Stephen Jacobi, Executive Director of the NZ International Business Forum and uses material prepared for the Asia Society Policy Institute (see http://asiasociety.org/policy-institute/reaching-trans-pacific-partnership-agreement-perspectives-asia

 

 

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,...