NZ US Council Welcomes Broad Outlines of TPP

13 November 2011

MEDIA RELEASE

NZ US Council Welcomes Broad Outlines of TPP

The NZ US Council applauds the progress being made in the Trans Pacific Partnership (TPP), the broad outlines of which have been released at the APEC Summit in Honolulu.

“After two years’ hard work TPP is set to deliver a ground-breaking agreement which can serve as a blueprint or pathway to a broader Free Trade Area of the Asia Pacific (FTAAP). In the process TPP will deliver a freer and fairer trade and investment relationship between New Zealand and the United States” said NZ US Council Executive Director, Stephen Jacobi.

Mr Jacobi is in Honolulu along with a delegation of business leaders attending the APEC CEO Summit. In remarks to the Summit US President Barack Obama described TPP as a means to address the challenges of an interconnected world and said the goal was to complete a legal text in 2012.

“The TPP announcement in Honolulu more than satisfies New Zealand business expectations at this point. We are particularly encouraged that Leaders from TPP economies have reaffirmed the final agreement must be comprehensive, high quality and innovative. These were all criteria listed in our joint statement with other Asia Pacific business organizations issued in Honolulu earlier this week”.

Mr Jacobi said that as negotiations continue the emphasis must be on building on the momentum of the negotiations, retaining a high level of ambition and ensuring that the final agreement is open to accession by other economies.

“Eliminating tariffs within a ten year time frame and effectively addressing new generation issues such as regulatory coherence and innovation are critical elements that need to finalised in the next period. There are some sensitive issues involved which will need to be worked through with stakeholders. New Zealand business also welcomes the increasing interest being shown in TPP by other economies, including Japan”

Mr Jacobi recalled that the NZ US Council had been pursuing the goal of a free trade agreement with the United States for the last decade.

“TPP will mark a major turning point in New Zealand’s relationship.with the United States. A successful TPP would provide tangible benefits for New Zealand business by eliminating tariffs and border restrictions, optimizing supply chains by reducing business costs and speeding up the flow of goods, services and investment, providing more security for business as well as opening up new business opportunities. TPP remains a work in progress but is a prize well worth waiting for”.

About The Trans Pacific Partnership
TPP is an existing trade agreement between Brunei, Chile, New Zealand and Singapore which Australia, Malaysia, Peru, the United States and Viet Nam wish to join. Nine rounds of negotiations have been held involving the nine partners. Japan has also indicated its willingness to join TPP. The economies of APEC account for over 80% of New Zealand’s total merchandise trade. Trade with APEC economies has been growing at an average of 4.5% per annum over the last 20 years.

About the NZUS Council – www.nzuscouncil.com
The NZ US Council is a non-partisan body funded by both business and the Government to promote New Zealand’s broader relationship with the US. Two-way trade with the US is valued at over $8 billion and the US is a leading source of investment, innovation and business ideas. The NZ US Council is actively engaged in co-ordinating business and government efforts towards concluding a comprehensive, high quality result to the TPP negotiations.

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