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 MyNBR Tags
Most listened to
- NBR Radio Rich List Special: Interviews with Rich Listers, philanthropists, property gurus, investors and much, much more
- “An RBA interest rate cut is pretty much a done deal,” says Capital Economic's Paul Dales
- Japan’s Prime Minister Shinzō Abe opens the floodgates to more stimulus. Join NBR's Jason Walls as he explains why
- Despite a few howls of protest, land economics expert Adam Thompson rates the Auckland Unitary Plan
- Hamish McNicol discusses the Serious Fraud Office’s warning to companies about employee fraud