Japan, world’s third largest economy, ratifies CPTPP
Minister for Trade and Export Growth David Parker has welcomed Japan’s early ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Japan has notified New Zealand, as Depositary for the CPTPP, that it had completed its domestic procedures to ratify the Agreement.
“It’s pleasing to see the world’s third-largest economy demonstrating leadership and support for open markets and global trade rules by its formal endorsement,” David Parker said.
“The CPTPP will create a new FTA relationship for New Zealand with Japan, which is our fifth-largest trading partner and an important source of overseas investment.”
Two-way goods and services trade with Japan totalled $8.2 billion last year.
“Tariffs would be eliminated over time on most exports to Japan, and there will be significant cuts to tariffs on beef and access would be improved for a number of dairy products.
“Our exporters can look forward to no longer being disadvantaged in this high-value market compared with competitors such as Australia and Chile, which already have trade agreements in force with Japan, and the European Union, which will have one shortly.”
CPTPP will have a wider positive impact for small and medium sized enterprises in the horticultural industry. It will immediately eliminate tariffs on kiwifruit sent to Japan at an estimated saving of $26 million a year.
David Parker discussed CPTPP implementation and the commitment both countries have to making CPTPP work for the benefit of all in our societies during his trip to Japan in June.
“Japan is the largest economy in the CPTPP grouping and I expect its ratification to generate further momentum toward entry into force of the Agreement.”
New Zealand hopes to complete its ratification procedures by the end of the year. The Trans-Pacific Partnership Agreement (CPTPP) Amendment Bill, which would make the changes necessary for New Zealand to ratify the Agreement, had its first reading in Parliament last week] and has been referred to select committee.
The CPTPP comes into force 60 days after at least six of the 11 signatories have ratified.