Revised Pacific trade pact dumps US rules, comes closer to reality

Business | 21 Feb 2018 3:06 pm

New Zealand estimates a Pacific trade deal would boost its economy by up to 1 percent as exporters would face reduced tariffs on goods like kiwifruit, wine and beef. 

The analysis today came as details of the trade pact between 11 countries around the Pacific Rim were released. The countries, which include Japan, Canada and Australia, intend to sign the deal in March. 

The New Zealand Government today made public the complete details of the revised Trans-Pacific Partnership trade agreement. The text also includes an analysis of its forecast impact on the country's economy.

The revised pact is now called the Comprehensive and Progressive Agreement for Trans-Pacific partnership.

Canada said it will soon have preferential access to half a billion consumers in the world’s most dynamic and fast-growing market – a move that will strengthen Canadian businesses, grow the economy, and create more well-paying jobs for middle class Canadians. In an online statement by the Minister of International Trade, Canada said the pact represents 495 million people with a combined gross domestic product of C$13.5 trillion – 13.5 percent of global GDP.

US President Donald Trump fulfilled a campaign promise by pulling the U.S. out of an earlier version of the deal, previously called the Trans-Pacific Partnership. 

New Zealand estimates the deal would expand its economy by up to 4 billion New Zealand dollars (US$2.9 billion) a year, according to the analysis released by the Ministry of Foreign Affairs and Trade. 

The analysis concluded that not signing would shrink GDP.

New Zealand Trade Minister David Parker says 22 items had been suspended from the original deal, including changes to intellectual property law and taxpayer subsidized medicine, the New Zealand Herald reports.

Australian Trade Minister Steve Ciobo said the agreement eliminated more than 98 per cent of tariffs in a trade zone with a combined GDP of A$13.7 trillion, the Herald said.-AP/The Standard

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