New Zealand exporters stand to benefit from TPP agreements

93% of New Zealand lamb is exported. Photo/Duncan Brown

New Zealand is a trading nation, with 93 per cent of lamb, 82 per cent of beef and 95 per cent of dairy production being exported.

As an organisation, Federated Farmers is very involved in promoting the benefits of free trade, improved market access and reduction of tariff and non-tariff barriers.

It is agreed that the biggest gains from trade liberalisation would arise from a multi-lateral agreement through the World Trade Organisation (WTO) and the Trans Pacific Partnership (TPP) agreements.

On this front it was pleasing to see that at the ninth WTO Ministerial Conference in Bali, held last December, some decisions were made.

These decisions covered trade facilitation and some aspects of agriculture and development. They bring gains for New Zealand's exporters, particularly in relation to emerging developing-country markets.

The Trade Facilitation Agreement will over time help reduce costs and assist the passage of goods across borders, through enhancing predictability and transparency in border processing procedures.

This will generate some practical benefits for exporters. For example, the agreement requires members to publish information on import and export requirements and to issue advanced rulings.

New Zealand's exporters stand to benefit from the eventual implementation of the agreement in key developing country markets, especially in Asia and the Middle East, where current customs systems sometimes present challenges for New Zealand exporters.

New Zealand exporters will also benefit from provisions relating to perishable goods. These require members to expedite the release of perishable goods to minimise any deterioration. New Zealand was a strong proponent of this provision, given the benefits for our agricultural and horticultural export sectors.

In addition, the agricultural outcomes include new provisions on tariff rate quota administration. These provisions add transparency to the tariff quota system and seek to improve quota fill. They reduce the administrative burden and encourage members under filling their quota to make it available to others.

It is also promising on completion of the Trans Pacific Partnership. The partnership involves Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. A four-day ministerial meeting in Singapore during December made substantial progress toward completing the agreement.

Over the course of the Bali meeting, potential ``landing zones'' were identified for the majority of key outstanding issues in the text. For all TPP countries, an ambitious, comprehensive and high-standard agreement that achieves the goals established in Honolulu in 2011 is critical for creating jobs and promoting growth, providing opportunities and contributing to regional integration and the strengthening of the multilateral trading system.

Based on this, we are optimistic that in 2014 the TPP will be signed off by all countries, thus bringing numerous benefits to New Zealand agriculture.