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Red meat sector welcomes news CPTPP will enter into force

Red meat sector welcomes news CPTPP will enter into force this year

The red meat sector welcomes Minister David Parker and Damien O’Connor’s announcement this morning that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will enter into force on 30 December this year for Mexico, Japan, Singapore, New Zealand, Canada and Australia who were the first six nations to ratify the agreement.

Beef + Lamb New Zealand’s (B+LNZ) Chief Executive Sam McIvor says Australia was the sixth country to ratify the CPTPP today, meaning that the agreement can come into effect before the end of this year.

“This timing means the sector will benefit from two rounds of tariff cuts in quick succession from all member countries, with the exception of Japan. The first tariff cut will be upon entry into force of the agreement on 30 December and the second round of cuts on 1 January 2019. Japan’s second round of tariff cuts will be on 1 April 2019.

“This agreement is of great importance to the sector, especially for the Japanese market where we have lost significant market share due to Australia’s preferential access under their bilateral FTA with Japan. The CPTPP will put us on a level playing field and save the sector approximately $63 million in tariffs into Japan once the agreement is fully implemented,” says Mr McIvor.

Meat Industry Association (MIA) Chief Executive Tim Ritchie saysthere are a number of other countries who have expressed an interest in joining the agreement such as the United Kingdom, Taiwan, and South Korea.

“This not only highlights the economic significance of the CPTPP but also the importance of the rules -based trading system and trade liberalisation to these countries. This is particularly important in the current climate of growing protectionism.

“The red meat sector fully supports the accession of other countries to the agreement where they are committed to high quality, comprehensive outcomes,” says Mr Ritchie.

The red meat sector thanks both the previous and current governments and officials on the significant work they have undertaken to bring the agreement into force – but also to keep the agreement alive during some difficult challenges, especially the withdrawal of the United States in early 2017. We believe this is a massive step towards reinforcing the importance of trade liberalisation and the sector will continue to support the government’s efforts in this space.

ENDS

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