TPP study speculation wildly misleading

Media statement Wednesday, February 5th, 2014

TPP study speculation wildly misleading

The 'new' study said to cast doubt on the likely benefits of the Trans Pacific Partnership deal is without any merit as it based on pure speculation, the Employers and Manufacturers Association says.

"So called studies of this kind bring the credibility of New Zealand academic research into disrepute," said Kim Campbell, EMA's chief executive.

"The report by the Sustainability Council says clauses in the TPP could side line local courts, reduce national sovereignty and weaken regulatory autonomy and would therefore reduce the value of the TPP.

"But there is no evidence there will be any such clauses in the final agreement.

"The study is mere speculation, premature and wildly misleading.

"It fails to factor in the big cost to New Zealand if it were to proceed and we were not part of it.

"On the other hand if it does proceed with New Zealand participation, our standard of living would be enhanced as a result of the extremely handsome trade gains we believe would be made.

"Yet without the final agreement we can't guess the extent of the benefits even though, with Japan, Canada and Mexico's involvement, the potential is highly attractive.

"The Foreign Direct Investment factor is likely to be only a small though important component of the total benefit. The report ignores that FDI increases the pot of investment funds available inside the country even if such investment goes into existing assets or businesses.

"We also note all estimates of the benefits of the free trade agreement with China were vastly understated."

ENDS

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