Big gains possible from TPP

Graeme Harrison

New Zealand has a lot more to gain from the Trans-Pacific Partnership now Japan’s in the negotiations, says Sir Graeme Harrison.

Speaking on TV3’s The Nation, the ANZCO Foods chairman said New Zealand could bring in $5 billion per year in our exports now Japan was involved in the Trans-Pacific Partnership (TPP), compared to $3.5 billion without Japan.

The increase in exports to Japan could mean a 2% gain in GDP, with many of the gains in the primary industries, he said.

Japan has been a very protected economy, with tariffs of over 300% on NZ milk powder and an estimated USD$1 billion in direct support to Japanese farmers.

But Sir Harrison said Japan had been going through a deflationary phase for a long time.

“It’s time for reform and Japan knows that it has to deal with this, and will use TPP as a pretext to undertake very serious structural reforms.”

He said Japan’s inclusion has made the TPP more worthwhile for the United States, which in turn will work in New Zealand’s favour.

“All of this comes together with two countries, the world’s first and third largest economy, both believing in a rules-based trading system, that are on our side, and we can have quite an influence in that process.”

 

This article is tagged with the following keywords. Find out more about My Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

not to mention that NZ is pretty much tariff-free already. We benefit from any tariff reductions from other participating countries, while they can't say the same for NZ

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7449 0.0001 0.01%
AUD 0.9312 -0.0094 -1.00%
EUR 0.6570 0.0017 0.26%
GBP 0.4914 0.0009 0.18%
HKD 5.7747 0.0006 0.01%
JPY 88.0090 0.2530 0.29%

Commods

Commodity Price Change Time
Gold Index 1292.1 12.740 2015-01-27T00:
Oil Brent 50.7 1.360 2015-01-27T00:
Oil Nymex 46.2 1.080 2015-01-27T00:
Silver Index 18.1 0.100 2015-01-27T00:

Indices

Symbol Open High Last %
NZX 50 5737.7 5794.8 5737.7 0.99%
NASDAQ 4698.2 4721.9 4771.8 -1.89%
DAX 10785.9 10810.6 10798.3 -1.57%
DJI 17638.5 17638.5 17678.7 -1.65%
FTSE 6852.4 6865.0 6852.4 -0.60%
HKSE 24800.0 24983.9 24807.3 0.19%
NI225 17615.9 17850.6 17768.3 0.15%