TPP agreement safeguards New Zealand’s export sector

TPP agreement safeguards New Zealand’s export sector

Federated Farmers congratulates Prime Minister Jacinda Ardern and the coalition government for recognising the importance of free trade to New Zealand.

Following a frenetic few days of negotiations at the APEC summit in Vietnam, the New Zealand Trade delegation has succeeded in brokering agreement with 11 countries from the Asia-Pacific region- to move the deal forward.

Federated Farmers thanks all the Ministers and officials involved for their dedication and resolve.

"This is a great outcome for not just the primary sector but all New Zealanders. It ensures our country will be part of a critical trade deal now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), says Andrew Hoggard, Federated Farmers National Vice President.

"It’s vital that these international trade agreements exist, without it, there’s a real risk of more countries retreating to economic protectionism, which would hamper our access to key and emerging markets.

"This would have major concerns for our ability to trade and be competitive. It would also have repercussions for our future prosperity."

The Federation believes CPTPP will safeguard New Zealand’s economic interests and further strengthen our export sector.

"Trade deals like this ensure we are on an equal footing globally and particularly with the likes of Australia and the European Union, while presenting us with immense opportunities as an exporting country, opening up the markets of Japan, Mexico, Peru and Canada.

"For example, frozen beef into Japan currently faces a 50 percent tariff while Australia only faces a tariff of 22 percent.

"Being part of this trade agreement is essential if the new Government is to realise its aspirational goals for New Zealand. The Federation is delighted that the Prime Minister has been pragmatic and assertive to keep this agreement moving forward, and we await its completion in a timely manner," says Andrew.

Federated Farmers' position on Trade

Over 75% of merchandise exports come from the primary sectors - generating $38 billion in primary sector export earnings due to our ability to trade with other countries.

In some key global economies there is clamour for a retreat towards economic nationalism and protectionism. In light of these international threats, it is more important than ever that New Zealand remains committed to realising the benefits of free trade and promoting and pursuing trade liberalisation.

ENDS

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