New Zealand ratifies CPTPP during trade minister’s trip to Ottawa and Washington
It’s a big week for New Zealand in trade and investment.
The ban on foreign buyers of existing homes took effect on Monday.
This cleared the way for us to pass the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP) legislation.
This in turn allowed us to ratify the agreement.
New Zealand has today ratified the CPTPP taking to four the number of countries that have formally ratified the Asia-Pacific trade deal.
Minister for Trade and Export Growth David Parker today handed a copy of the notification of ratification to New Zealand’s High Commissioner to Canada Daniel Mellsop. New Zealand is the official depository for the 11 nation agreement.
David Parker is in Ottawa during a six day trade trip to the United States and Canada for talks focussed on the future of the World Trade Organisation (WTO).
“The importance of CPTPP has grown over recent months with the rapid escalation of protectionist measures around the world.”
In recent days he held talks with the top US trade official, Trade Representative Ambassador Robert Lighthizer, his deputy Ambassador Jeffrey Gerrish and other trade experts in Washington DC.
At the White House he met the Director of the National Economic Council Larry Kudlow and had a private meeting with President Donald Trump’s deputy Chief of Staff, New Zealander Chris Liddell.
David Parker said the CPTPP will come into effect 60 days after six countries ratify the deal.
New Zealand joins Japan, Mexico and Singapore that have already ratified. Australia and Canada are expected to join very soon. That means the tariff reductions and increased exports will begin very early in 2019.
“New Zealand’s ratification means that from day one our businesses will be able to take advantage of improved trading conditions and lower tariffs. We have not previously had a trade agreement with Canada, Mexico nor with the world’s third largest economy Japan.
“Economic modelling shows exports, the New Zealand standard of living, and wages, will increase as a consequence, David Parker said.
The CPTPP markets are collectively home to 480 million consumers and make up 13.5 per cent of world GDP.”
“Important changes were made in CPTPP, compared with the original TPP, to deliver on this Government’s bottom lines including, protecting drug agency Pharmac, the Treaty of Waitangi, and the Government’s right to regulate in the public interest,” David Parker said.
- New Zealand's implementing legislation was passed into law by Parliament on Wednesday with the support of all parties except the Greens. The foreign buyer ban was supported by all parties except National and Act.
- The 11 countries involved in the CPTPP are New Zealand, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, and Viet Nam.
- More information on the CPTPP, including the full legal text and a National Interest Analysis, is available at www.mfat.govt.nz/cptpp
Photograph of Minister for Trade and Export Growth David Parker handing a copy of the notification of ratification to New Zealand’s High Commissioner to Canada Daniel Mellsop.