Trade Minister Todd McClay has welcomed a joint statement from the TPP 11 countries saying it shows unity between the 11 and important next steps for the agreement.
“This outcome was better than we might have hoped for. It demonstrates a commitment from all 11 countries to implement the agreement which is extremely valuable for New Zealand and sets a clear path to a meeting of leaders in November of this year,” Mr McClay says.
“TPP is a high-quality set of rules for the Asia-Pacific which will increase market access for our exporters and benefits our wider economy.”
The statement was unanimously agreed to by the 11 countries at a meeting which New Zealand co-chaired with Vietnam on the sidelines of APEC in Hanoi.
Senior officials will now meet later this year in Japan to assess options for bringing TPP11 into force expeditiously as well as looking at how to facilitate membership for the original signatories.
Ministers of the 11 TPP countries have asked for this work to be completed before they meet at the APEC Economic Leaders Meeting on 10-11 November 2017 in Da Nang, Vietnam.
Mr McClay says that TPP11 represents tariff savings of $222 million each year. Japan’s National Graduate Institute of Policy Studies has estimated that TPP11 will increase New Zealand’s GDP by 3.4% and is worth an additional $2.5 billion to our economy after 10 years.
“TPP11 has both important strategic and economic value. It would ensure our exporters remain competitive in important markets and will support jobs in all regions of New Zealand,” Mr McClay says.
Ha Noi, Viet Nam – Ministers and Vice Ministers from Australia, Brunei Darussalam, Canada, Chile, Japan, Mexico, New Zealand, Malaysia, Peru, Singapore and Viet Nam met today to discuss the Trans-Pacific Partnership (TPP) in the margins of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade.
The Ministers reaffirmed the balanced outcome and the strategic and economic significance of the TPP highlighting its principles and high standards as a way to promote regional economic integration, contribute positively to the economic growth prospects of its member countries, and create new opportunities for workers, families, farmers, businesses and consumers.
The Ministers agreed on the value of realising the TPP’s benefits and to that end, they agreed to launch a process to assess options to bring the comprehensive, high quality Agreement into force expeditiously, including how to facilitate membership for the original signatories.
The Ministers tasked their senior trade officials to engage to take forward the preparation of this assessment. Ministers asked for this work to be completed before they meet in the margins of the APEC Economic Leaders Meeting on 10-11 November 2017 in Da Nang, Vietnam.
The Ministers also underlined their vision for the TPP to expand to include other economies that can accept the high standards of the TPP.
These efforts would address our concern about protectionism, contribute to maintaining open markets, strengthening the rules-based international trading system, increasing world trade, and raising living standards.
Trade Minister Todd McClay has arrived in Vietnam for the annual Asia-Pacific Economic Cooperation (APEC) meeting of Trade Ministers, where he will also co-chair a meeting on the next steps for the Trans-Pacific Partnership (TPP).
The meeting follows a successful visit to Japan with Prime Minister Bill English where Japan and New Zealand firmly committed to work together to progress TPP11.
“This TPP meeting will be important for the future of the Agreement. This is a chance for the 11 remaining countries to collectively decide upon a process for next steps,” Mr McClay says.
“New Zealand recently joined Japan in ratifying TPP because the Agreement still has real value to the Asia-Pacific both strategically and economically.
“The Asia-Pacific is the world’s fastest growing region, it consumes more than 70 per cent of New Zealand’s exports. That’s a big part of why fighting for a common set of high-quality rules that will secure lower tariffs and better access for our exporters is so important”.
Mr McClay will also meet bilaterally with a number of key regional trading partners, participate in the APEC Ministers Responsible for Trade meeting and attend a separate meeting with Ministers from Regional Comprehensive Economic Partnership (RCEP) countries.
“APEC will be an excellent opportunity to progress the hard work we are putting into securing better regional trade access and get some more clarity on key issues facing the Asia-Pacific,” Mr McClay says.
“Trade Agenda 2030, our new trade strategy, sets an ambitious target of 90 per cent of goods trade being covered by free trade agreements by 2030. Enhancing our trade relationships at APEC, RCEP and With TPP is a further step towards achieving this target.”
Trade Minister Todd McClay has welcomed Cabinet’s decision to ratify the Trans-Pacific Partnership (TPP) and says the move shows leadership with Japan who has also ratified the agreement.
“Cabinet’s decision sends a clear message that we see value in a common set of high-quality rules across the Asia-Pacific and we are keeping all of our options open,” Mr McClay says.
“TPP remains valuable both economically and strategically. It stands to improve access for New Zealand exporters and lower tariffs around the Asia-Pacific, including Japan, the world’s third largest economy.”
Ratification comes ahead of the APEC Trade Minister’s meeting in Vietnam later this month where Mr McClay will Co-chair a separate meeting of TPP Ministers.
“Following the U.S. withdrawal from TPP, our export sector and business community sent a clear message to find a way forward for this valuable agreement and that’s what we have been working hard to do,” Mr McClay says.
“We are still actively exploring alternative options for TPP and expect other TPP partners to also ratify in the coming months.”
“There is a building consensus that a common set of high quality rules across the Asia-Pacific will greatly benefit regional economic integration and support openness. High-quality trade deals are a key driver of growth, competition, innovation and productivity that create jobs and lower costs for consumers."
Note to editors: New Zealand's implementing legislation and regulations only take effect on the date that the Agreement enters into force for New Zealand.
Trade Minister Todd McClay says he sees big opportunities for New Zealand exporters following a visit to Vietnam this week.
Mr McClay met with Prime Minister Nguyen Xuan Phuc and Trade Minister Tran Tuan Anh to talk about regional trade deals and ways to boost our trade relationship.
"The Prime Minister and I recognised that trade is growing quickly between our countries. This is a significant relationship and we have set an ambitious target of doubling two-way trade to $2.5b over the next 5 years,” Mr McClay says.
Vietnam has a population of 94 million consumers. Opportunities exist around export education and tourism, as well as growth in services trade and high-quality food and beverages exports.
"Trade Minister Tuan Ahn also expressed a desire to boost links between our countries. He has proposed more direct flights between Vietnam and New Zealand and I have confirmed that our government would welcome this development,” Mr McClay says.
"The Vietnam economy is growing quickly and I congratulate the Vietnamese Government on embracing the contribution open markets play in economic development. Regional economic integration across the Asia-Pacific will deliver greater opportunity for our exporters and our citizens. "
"New Zealand is a natural partner for Vietnam in exploring opportunities that will boost trade."
“Trade Agenda 2030, our new trade strategy, sets an ambitious target of 90% of goods trade being covered by FTAs by 2030. Enhancing our trade relationship with Vietnam is a further step towards achieving this aim.”
Mr McClay also discussed the strategic value of TPP and a desire to move ahead with the RCEP negotiation. Vietnam will host a meeting of TPP ministers later in the month during the APEC Trade Ministers meeting and has asked Mr McClay to co-chair the meeting of TPP countries.
"We have agreed to continue to evaluate options under TPP that would deliver benefits for our citizens and the region. New Zealand is committed to keeping our options open," Mr McClay says
Trade Minister Todd McClay travels to Vietnam today to hold talks with Prime Minister Nguyen Xuan Phuc and Trade Minister Tran Tuan Anh to discuss developments for the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) Agreements.
“New Zealand and Vietnam are both parties to the TPP Agreement and the RCEP negotiation and we have a mutual commitment to high-quality trade deals that create opportunity for our citizens,” Mr McClay says.
“The Asia-Pacific is the fastest growing region in the world and this presents a huge number of opportunities for our farmers, growers, exporters and our wider economy.”
Vietnam is due to host the APEC trade Minister meeting beginning on the 21st of May, where meetings on both the TPP and RCEP will also take place.
“We appreciate Vietnam’s hosting of APEC and its commitment to trade liberalisation. It has also rapidly grown into an important market for New Zealand exporters,” Mr McClay says.
“Since the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA) came into force in 2009 our two-way trade with Vietnam has more than tripled from $430 Million in 2009 to $1.3 billion last year.
“This visit will be an important opportunity to take stock of what has been achieved and discuss how we can continue to deepen this hugely beneficial relationship for our economies.”
Trade Minister Todd McClay and Associate Health Minister Nicki Wagner say we have been working closely with Australia in the fight for tobacco plain packaging laws and believe the World Trade Organisation (WTO) case will be important for New Zealand.
The WTO case, which is expected to be decided later this year, was launched in 2014 with New Zealand as a ‘third party’. New Zealand has presented evidence including appearing before the WTO Panel in Geneva.
“This case is about a country’s right to determine its own measures to protect public health. We have always said that the link between domestic public health rights and trade is important to our government and we are fighting hard to ensure this view is shared in the WTO,” Mr McClay says.
“The WTO has a robust set of trade rules in place to preserve our rights and I remain confident that the WTO will find in Australia’s favour on tobacco plain packaging," Mr McClay said.
New Zealand has a keen interest in proceedings because the Smoke-Free Environments Act comes into force on March the 14th 2018 and will require plain standardised tobacco packaging after this date.
Associate Health Minister Nicky Wagner says the upcoming decision is particularly important because product design and packaging are major avenues for the marketing and promotion of tobacco products.
“Smoking is our leading cause of preventable disease and the Government is committed to the goal of making New Zealand smokefree by 2025, Ms Wagner says.
“Plain packaging will reduce the appeal of tobacco products and the desirability of smoking. This move shows we are serious about stubbing out smoking and deterring new smokers, especially young people.”
Trade Minister Todd McClay will chair the first meeting of the Trade Ministerial Advisory Group today (MAG) and says it builds on a strong campaign of new engagement opportunities in the trade portfolio.
“Trade contributed $70 billion to the New Zealand economy last year alone and hundreds of thousands of jobs depend on it. We all have a stake in the continued success of our export sector,” Mr McClay says.
“The MAG has been set up with this in mind and will provide better engagement on all trade issues. It will also serve as a more direct avenue for a wider range of interested parties to engage with the Government.”
The MAG includes representation from iwi, unions and NGOs, as well as industry bodies for primary industry, wood, seafood, tourism, education, horticulture, aviation and technology.
This first meeting of the MAG will focus on the detail of Trade Agenda 2030 and the first stages in the Government’s plans for implementing the new strategy.
“Trade Agenda 2030 sets a target of 90 percent of our goods exports being covered by FTAs by 2030. We are also looking to tackle non-tariff barriers more effectively and focusing more on new growth opportunities in trade in services, investment and the digital economy,” Mr McClay says
“We are charting an ambitious course ahead for trade deals and market access. It must be underpinned by a comprehensive programme of engagement that also aims to make more information available to the wider public.”
More information about the MAG can be found at: https://www.mfat.govt.nz/en/trade/nz-trade-policy/ministerial-advisory-group-on-trade/
Trade Minister Todd McClay says that the resumption of the CER-MERCOSUR Dialogue after 5 years is very good news for New Zealand and could lead to big trade gains for our exporters.
The meeting will be held on 4 May in Buenos Aires between senior officials from New Zealand, Australia and the four countries that make up the MERCOSUR bloc, Argentina, Brazil, Paraguay and Uruguay.
“The resumption of talks is a significant development and I see this as laying the foundations for a future trade negotiation. We will be pushing hard for a deal which offers better access for New Zealand,” Mr McClay says.
“Whilst it's early days, this could lead to an extremely valuable opportunity for New Zealand.”
“The MERCOSUR bloc has a GDP of more than US$2.4 trillion and a total population of 260 million. It’s a part of the world that’s growing quickly and it’s important that our exporters can be competitive in this market. High-quality trade deals help to ensure this competitiveness.”
Under the new trade strategy, Trade Agenda 2030, the Government is committed to forging new trade ties and expanding our network of trade agreements. It also sets the ambitious target of covering 90 per cent of our goods trade by free trade agreements by 2030.
“We have a strong commitment to developing closer economic relations with Latin America. I welcome the restarting of talks with MERCOSUR,” Mr McClay says.
Economic Development Minister Simon Bridges and Trade Minister Todd McClay have announced that New Zealand will participate in World Expo 2020, to be held in Dubai, United Arab Emirates.
The announcement was made during Mr Bridges’ visit to Dubai.
“Through Budget 2017, the Government is committing $53.3 million to construct a New Zealand Pavilion that will allow Kiwi businesses to highlight their innovative products and services and open doors to new export markets,” says Mr Bridges.
“Showcasing New Zealand to the world is a crucial part of boosting economic growth. Expo 2020 will provide a springboard to promote us as an innovative, solution-focused economy to the 25 million visitors expected to attend from across Europe, the Middle East, North Africa and Asia.
“It will also allow us to build on our strong economic and transport links to the UAE which acts as a global air and sea logistics hub, providing access for New Zealand exporters to a much wider region. We’re already well connected with five direct daily Emirates flights, contributing $700 million to the economy,” says Mr Bridges.
“It makes clear economic sense for New Zealand to participate in this global event,” says Mr Bridges.
The Expo will take place from October 2020 to April 2021 with Mr McClay saying it will attract high-value visitors from all corners of the world.
“Expo 2020 is a vital opportunity to increase New Zealand’s profile amongst new trading partners as well as grow our trade with existing partners,” says Mr McClay.
We have a strong trade and economic relationship with the UAE and $3.8 billion of two-way trade with the wider Gulf Cooperation Council (GCC),” says Mr McClay.
“The Gulf States also importantly provide an entry point into the wider region for many New Zealand companies and a base from which to better access the wider Middle East and beyond,” says Mr McClay.
New Zealand is close to completing a free trade agreement with the GCC, which comprises of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
The UAE alone is New Zealand’s twelfth largest trading partner, with annual two-way trade exceeding $1.9 billion in 2016.
About Expo 2020
Expo 2020 has the theme of Connecting Minds, Creating the Future. The Expo site will be around 2sq/km in size and will contain three thematic areas: opportunity, sustainability and mobility.
These three pavilions will showcase ideas and innovations, and countries that attend will have their specific pavilions spread around the thematic areas. New Zealand has been invited to participate in the sustainability precinct.
The organisers expect around 180 nations to participate. New Zealand is among the first 20 to formally confirm attendance.
More information on the Expo see http://expo2020dubai.ae
New Zealand Pavilion
The Government is about to launch an RFP process within the creative sector of New Zealand to select the best team and ideas for the design and content.