The Trans-Pacific Partnership Agreement was completed at 2am this morning after a marathon effort from those 12 countries that are party to it. All the secreacy around the negotiations had people imagining the worst, but it appears that the deal struck will be hugely beneficial for New Zealand.
See a great summary by sector here: TPP Outcomes SectorSummary
Big winners are:
- Meat ($72million in reduced tariffs plus quota reductions/removals)
- Dairy ($102million in reduced tariffs plus quota reductions/removals)
- Fruit and Vegetables ($26.3million)
- Wine ($10million)
- Forestry ($9million)
- Fish ($8million)
- Wool, Leather and Textiles ($4million)
- Manufactured Goods ($10million)
- Other Agricultural Goods ($18million)
Personal favourites (other than the wine!) are $1million reduction in Onion tariffs and $1million reduction in Buttercup squash tariffs. Kiwifruit Growers will see around $6,000 less each in a $15.3million tariff reduction.
These are the benefits based on current production and volumes. Tariff pricing can affect real demand, so the benefits could be significantly larger than those identified.
New Zealand already has a very open economy and won’t have to adjust much in response. Sovereignty is not being given up and we are not being locked in to a deal that we can’t get out of. The patent issue around pharmaceuticals is not too far beyond what we currently have. Tobacco has been specifically excluded, so we won’t be sued for items such as restricted branding and advertising, or taxes on the product itself. The labour requirements being placed on countries are less than what we currently have, so will in effect be putting us on a more level playing field.
As with all deals, the true outcome will be more clear over time. But on the face of it, a great outcome for New Zealand.
Lincoln Sharp - Thinking Forward 