Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

New TPP could add up to $4 billion to NZ economy

Patrick O'Meara, Economics Correspondent

@Omearanz patrick.omeara@radionz.co.nz

A report just released estimates the new Trans-Pacific Partnership will add between $1.2 billion and $4 billion to New Zealand's economy once it is fully implemented.

Trade Minister David Parker talks to media after releasing the text of the new TPP agreement. Photo: RNZ / Jane Patterson

The government-commissioned report on the economic impact of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) estimates the economy would grow between 0.3 percent and 1 percent more than if TPP had not existed, with exporters enjoying better access to new markets such as Japan, Canada and Mexico.

The 243-page National Interest Analysis (NIA) also warned if New Zealand didn't participate, the economy would shrink by $183 million as New Zealand firms would face higher barriers than their foreign competitors and investment would be diverted to other TPP nations.

The CPTPP involves 11 nations - New Zealand, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, and Vietnam. The United States withdrew last year under president Donald Trump.

It covers countries that account for 13.5 percent of world economic output, or about $US10 trillion.

Read the text of the agreement here:


The NIA estimates tariff savings of $222.4 million in savings annually once fully implemented, with $95.1 million of those savings starting as soon as the deal enters into force.

The agreement would also help reduce non-tariff barriers, though the potential benefits are harder to quantify. The report estimates that could range between $363 million to $1.2 billion.

The beef industry will be one of the biggest beneficiaries, especially in Japan.

Tariffs will fall from 38.5 percent to 9 percent over 16 years. That would also immediately remove the the advantage currently enjoyed by beef producers in Australia, which has a free trade agreement with Japan.

The government has trumpeted the new TPP as an improvement on the old version.

Prime Minister Jacinda Ardern and Trade Minister David Parker at the Trans-Pacific Partnership meeting on the sidelines of the Asia-Pacific Economic Cooperation leaders' summit in November. Photo: AFP

Trade Minister David Parker said it supported New Zealanders' jobs and income and protected national sovereignty.

Mr Parker pointed out the new deal made it more difficult for foreigners to buy houses and while he did not remove the Investor State Dispute Settlement (ISDS), which allowed foreigners to sue governments, he argued its scope had been reduced.

New Zealand has a side letter with Australia that removes ISDS to settle disputes, but it is not yet known which other TPP nations have also signed up.

It's understood that won't be revealed until 8 March, when all 11 nations sign the deal in Chile.

Another 22 provisions, mainly related to American demands around issues such as intellectual property, copyright and drug buying policies, have been suspended.

The analysis points out the drug buying agency Pharmac has been preserved with no additional costs.

Opponents are unlikely to be impressed, arguing the gains are modest and the potential benefits are likely to be exaggerated.

They also fear that the suspended provisions could be revived if America decides to rejoin the TPP, which would result in a loss of sovereignty.

© Scoop Media

 
 
 
Top Scoops Headlines

 

Gordon Campbell On Labour’s Timidity:

What an odd post-Cabinet press conference that was yesterday, from PM Jacinda Ardern and Finance Minister Grant Robertson ... More>>

Gordon Campbell: On The Prevailing Media Narratives About The Govt Coalition

The media reports the facts…. but that’s not the end of it, and nor should it be. It also marshals those facts and creates a story from them, usually one with a moral that’s implied or explicit. After six months though, it is still unclear just what the dominant media narrative is of the coalition government. Is it Idealistic But Impractical? Is its Heart in the Right Place, but is it Taking On Too Much? Is the coalition proving to be Fractious And Unstable, or is it Surprisingly Adept at Keeping Its Inherent Rifts Out of the Public Eye? More>>

RNZ Explainer: Why You Should Care About Cambridge Analytica

Facebook's shares have lost billions of dollars in value after something to do with data used by Cambridge Analytica. Confused? Here's what it means, and what could come next...More>>


Gordon Campbell: On The (Looming) Nurses’ Strike

It is (almost) possible to feel a bit sorry for the DHB negotiators engaged in the current nurses pay round. Come next Monday there’s every sign that nurses will resoundingly reject the pay offer the DHBs have put on the table, as being totally inadequate...More>>

Gordon Campbell: On A Trade War With China

As things currently stand, the White House has NOT included New Zealand on its list of allies whose steel and aluminium exports to the US will be exempted from US President Donald Trump’s recent hike in tariffs. More>>

Gordon Campbell: On Credibility In Politics

Credibility is always such a fickle, unstable element in politics. You know it when you see it, though. More>>

Video And Report: Cory Doctorow Talks Machine Learning And Big Data

International internet and digital technology commentator Cory Doctorow talked about machine learning and big data at the Privacy Commissioner’s PrivacyLive event on 13 March 2018 in Wellington. More>>