CPTPP bolstered by decision on UK accession

Trade and Export Growth

New Zealand welcomes the substantial conclusion of negotiations on the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Trade and Export Growth Minister Damien O’Connor announced today.

“Continuing to grow our export returns is a priority for the Government and part of our plan to provide greater economic security to all New Zealanders,” Damien O’Connor said.

“One in four New Zealanders’ jobs depend on our exports. The CPTPP is an important element of our trade agenda, and brings greater diversification to our export flow. 

“We know that when businesses start exporting, employment can grow up to 12 per cent faster, so we’re focussed on helping businesses keep growing their exports by opening doors to new markets, resulting in more jobs and higher incomes for Kiwi families.

“Stronger trade ties also lower the costs on businesses. Through the CPTPP, we’ve already saved Kiwi businesses $300 million in tariffs in just the first two years.

“Having a major economy like the UK inside CPTPP brings the Atlantic to the Indo-Pacific in a way that will strengthen the rules-based trading system in our region and will benefit New Zealand exporters, provide greater certainty, and enhance regional supply chains for trade.

“As a G7 member and the world’s sixth largest economy, the UK’s CPTPP accession emphasises the appeal of the Agreement and its importance as a key piece of regional trade infrastructure,” Damien O’Connor said.

The UK’s accession to the bloc will complement the gold-standard outcomes of the NZ-UK FTA, which will mean that 99.5 per cent of New Zealand’s current goods exports to the UK will be duty free from entry into force. At full implementation, exports are expected to grow by over 50%, and GDP by up to $1 billion.

“With four new FTAs and three FTA upgrades, this Government has delivered for New Zealand exporters,” Damien O’Connor said.

“The UK’s accession to CPTPP is another demonstration of our commitment to the rules-based trading system and our desire to see the Agreement remain an open and dynamic agreement.

“Reaching substantial conclusion of negotiations with the UK is a very positive step as New Zealand prepares to host and chair the 2023 CPTPP Ministerial meeting in July in Auckland,” Damien O’Connor said.

A copy of the Joint Ministerial Statement on the UK’s accession process to the CPTPP is available here www.mfat.govt.nz/cptpp-accession/