The government has approved a negotiating mandate for the so-called Trans-Pacific Partnership 11, a trade deal it says could save New Zealand companies $222 million a year, says Trade Minister Todd McClay.
The original Trans-Pacific Partnership was signed in 2016 by 12 Pacific rim nations but had not entered into force. A spanner was thrown in the works when US President Donald Trump signed a Presidential Memorandum to withdraw the US from TPP in January. Representatives, however, from the 11 remaining members have met several times this year and agreed to launch a process to assess options to bring the so-called TPP 11 into force expeditiously.
"TPP 11 ministers have committed to moving forward with the agreement as quickly as possible," McClay said. In May, all countries agreed to present a proposal to TPP leaders by November this year, when they meet in Vietnam as part of the APEC leaders week.
McClay said New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP 11 countries have agreed on, he added.
According to McClay, it is imperative New Zealand continues to show leadership along with Japan and Australia on TPP 11. He noted that Japan has just concluded a free trade agreement with the European Union that gives better access to European exporters than New Zealand currently has. Japan has also just announced it will apply a 50 per cent tariff on all frozen beef imports from countries it doesn't have an FTA with.