Trans Pacific Partnership positive for farmers and job seekers

A Trans Pacific Partnership (TPP) would be transformational for New Zealand agriculture and the New Zealand economy by involving five of our top ten export partners, including three of the top four.

“A TPP could boost our exports to the United States enormously and its only one partner,” says Bruce Wills, Federated Farmers President and economics and commerce spokesperson.

“The sky is the limit given HSBC Bank says our trade with the rest of the world could grow 83 percent in the next 15 years. That outperforms the global average and is vital for us to remain a first world nation and for public services to remain properly funded.

“A 2002 a report for the US-NZ Council found a true free trade deal between our two countries would boost New Zealand exports to the United States by 51 percent. New Zealand currently exports around $4 billion to the United States; our number three trading partner.

“Japan joining TPP negotiations supercharges the TPP’s overall potential. Japan is the world’s number three economy and our fourth largest export partner. The potential is huge because the TPP would involve half of our top ten export partners including three of the top four.

“The crucial thing for Federated Farmers is the removal of trade barriers for agriculture. That’s a non-negotiable requirement for us as the world needs to eliminate tariffs and subsidies. Free trade also needs a wider genuine commitment to services, investment and intellectual property.

“While the free trade agreements we have with the likes of Australia and China are tremendous, multilateral trade agreements are the future, such as the one we have with ASEAN (Association of Southeast Asian Nations).

“I’m optimistic New Zealand has a global opportunity to become a trading gateway.

“We’ve got ASEAN and the TPP is now a really hot prospect. With the free trade agreements we have with China and Indonesia, together with Russia and India in the pipeline, New Zealand is putting the trade ‘BRICS’ in the wall. All we need are agreements with Brazil and South Africa for us to be aligned with the major emerging economies.

“Ironically, the global economic outlook maybe giving impetus to the free trade agenda. From Japan to the Midwest, there’s a growing realisation the world can no longer afford to subsidise luxury farmers.

“Subsidies and tariffs not only waste hundreds of billions of dollars each year, it threatens international stability by impoverishing countries while making goods more expensive,” Mr Wills concluded.