Trade NZ signs TPP agreement
Trade Minister Todd McClay signed the TPP Agreement with the 11 other member countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, the United States and Vietnam.
James Parsons, Beef + Lamb New Zealand chairman, said: “This deal is critical for New Zealand sheep and beef farmers and meat exporters, keeping us competitive in key markets.”
Bill Falconer, Meat Industry Association chairman, added: “The TPP deal also includes ways to address complex non-tariff barriers, which will prove useful in terms of opening markets and ensuring that they stay open.”
The New Zealand sheep and beef sector exports close to 90% of its production totaling NZ$7.4 bn., on which it paid NZ$323 mill. of tariffs in 2014. Nearly one-third of those total exports go to TPP member countries, with a significant proportion of those tariffs paid in Japan (NZ$77 mill.) – where applied tariffs on beef exports are 38.5%.
The TPP agreement is expected to eliminate, over time, the vast majority of tariff costs on New Zealand red meat exports to TPP member countries. Based on 2014 exports, this would be a reduction in tariffs paid of around NZ$72 mill. which ensures that New Zealand red meat products will remain competitive in TPP markets.
The TPP is expected to enter into force within two years, once all member countries have completed their legislatives processes.