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TPP a win for regional New Zealand

Hon Steven Joyce

Minister for Economic Development

Hon Nathan Guy

Minister for Primary Industries

6 October 2015 Media Statement

TPP a win for regional New Zealand

Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy have today welcomed the Trans-Pacific Partnership as a great deal for regional New Zealand.

“This free trade agreement is all about giving our exporters, whether they’re farmers or manufacturers, access into the big consumer markets of the world on a more equal footing with local suppliers,” Mr Joyce says.

“We back our farmers, horticulturists, wine growers and manufacturers. We’re confident they’re equal to the best in the world. Whether they’re farmers in Hawke’s Bay or Manawatu, a winegrower in Central Otago or a manufacturer in the Waikato, they’ll get benefits from TPP.”

TPP will support the Government’s Business Growth Agenda to diversify the economy by building strong trade, investment and economic ties around the world.

“New Zealand businesses will be able to create more jobs and deliver higher incomes by having better access to world markets,” Mr Joyce says.

By 2030 the overall benefit of TPP to New Zealand is estimated to be at least $2.7 billion a year.

“And I suspect it will be better than that, given our track record of exceeding the predictions of the China FTA,” Mr Joyce says.

Mr Guy says the deal is a real boost to our farmers, fishers, foresters and growers.

“This is exciting news for our red meat industry. Tariffs on beef exports to TPP countries will be eliminated, with only the exception of Japan where tariffs still reduce from 38.5 per cent to 9 per cent.

“To give just one example, New Zealand beef will enjoy unrestricted access to the United States after five years. This is something our farmers have been seeking for decades.

“Tariffs on all other primary sector exports, except some dairy products, will be eliminated, including fruit and vegetables, sheep meat, forestry products, seafood, and wine.

“I’m disappointed we couldn’t get a stronger outcome for dairy, but it still gives us better access. Products like cheese, infant formula and ice cream will have improved access into some very big consumer markets like the United States, Japan and Mexico.

“The agreement also offers our exporters more certainty at the border with customs, food safety and biosecurity protocols more transparent across the 11 countries. This means exporters will face fewer delays waiting for goods to clear the border, more reliability for our premium food products, and less compliance costs.”

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