Businesses call for urgent action to conclude TPP in 2013

Business representatives from four economies – US, NZ, Canada and Australia – have met in Auckland to press for more urgency in concluding the Trans Pacific Partnership (TPP) negotiations currently underway.

“In September business representatives from across the TPP member economies urged governments to conclude an ambitious, comprehensive and high standard outcome in 2013,” says Cal Cohen, president of the Emergency Committee for American Trade (ECAT) speaking on behalf of the US Business Coalition for TPP.

“We are glad this call has been taken on board and we express our strong support for this goal.  It is now time for negotiators to tackle the more sensitive issues to ensure this deadline can be met.”

“TPP has the capacity to change the way business is done in the Asia Pacific region.  This is what is needed to grow economies and create jobs,” says Stephen Jacobi, executive director of the NZ US Council and NZ International Business Forum.

“We appreciate the task is complex but we urge negotiators meeting in Auckland this week to accelerate their efforts and narrow their differences so the benefits of TPP can be brought forward at a time of increasing economic difficulty.”

“Canada is joining the TPP negotiations for the first time here in Auckland and is determined to participate in a way that builds consensus for a strong outcome,” said Kathleen Sullivan, executive director of the Canadian Agri-food Trade Alliance (CAFTA).

“Our immediate priorities are addressing the proliferation of non-tariff barriers which impede trade and issues like rules of origin that can prevent trade occurring even when free trade agreements (FTAs) are put in place. There is a lot at stake for Canada in TPP and we are glad to be participating as one of eleven APEC economies.”

“Australia has a lot to gain from a successful outcome to TPP which can provide an opportunity to reduce the complexity associated with the noodle bowl of over-lapping and contradictory FTAs in the region,” said Bryan Clark, director, trade and international affairs, Australian Chamber of Commerce and Industry (ACCI).

Simplification of the supply chain will translate into reduced business costs and increase the time in which products move around the region.  That can only advantage businesses and consumers and lead to better economic outcomes for all member economies.”

Asia Pacific business organisations have earlier reaffirmed their view that a successful TPP will be:

  • Comprehensive – with no product exclusions and with commercially meaningful and flexible rules of origin.
  •  High quality – with strong standards across all main areas, from transparency, investment and government procurement to intellectual property, e-commerce and sanitary and phytosanitary measures.
  • Ambitious – with the elimination of tariffs and non-tariff barriers on trade in goods and services and investment no later than 2020, the deadline set for free and open trade and investment in the Bogor goals.
  • Innovative – with concrete new commitments on new generation and behind the border issues, including eliminating chokepoints in the operation of regional supply and value chains, fostering small and medium-sized business participation in expanding trade, facilitating regulatory coherence and promoting and protecting innovation.
  • Enforceable – with clear commitments, and strong and transparent state-to-state and investor-to-state dispute settlement mechanisms.
  • A living agreement – open to accession by other Asia-Pacific economies, provided these economies share TPP’s ambitious vision and can demonstrate their ability to accede to an agreement with the characteristics described above.

Business representatives from TPP member economies will join government negotiators and other representatives of civil society at a Stakeholder Forum in Auckland tomorrow (7 December).

Forming a ‘coalition of the willing’ more important for Boot Camp, says Barber

Forming a ‘coalition of the willing’ – those who want to work together to get further up the value chain – is more important than forming a new Agri-Food Board, says meat industry commentator Allan Barber.

In an item published online last week on interest.co.nz, he writes that although the proposed Agri-Board will be discussed at the forthcoming agri-food chief executives’ Boot Camp at Stanford University, “it is unlikely to be the main thrust of the gathering, which is intended to generate alignment an co-operation between and within agri-foods sectors.”

While there is “much logic and common sense” in the recent Riddet Institute’s report Call to Arms, calling for a trebling of agri-foods turnover, there is “nagging suspicion that it is just another strategy document, which, despite its stated intentions, will not result in a significant shift in behaviour,” he says.

He suspects that among the Boot Camp participants there will be many of those people who would be expected to be on an Agri-Foods board. “However, they will be too busy getting on with translating ideas into action to have time to worry about joining another board.”

Read his full article here …

Call to arms for agri-food

A proposal for a new Agri-Food Board is centre of a comprehensive new strategy aimed at tripling the value of exports for the agri-food sector to about $60 billion.

The Riddet Institute, a national centre of research excellence focusing on food, digestive physiology and nutrition, issued a ‘Call to Arms’ yesterday through the launch of its independent report on the future of New Zealand’s agri-food sector. The report calls for a joint approach from industry and government to drive the activities needed to treble the value of exports in the sector by 2025, as suggested in the Government’s Economic Growth Agenda in 2009.

The report contains options on how sector leaders can work together and why the agri-food industry should lead the strategy implementation work.

It was commissioned by the Riddet Institute and developed by an independent ‘thought leadership’ team led by Dr Kevin Marshall, former chief executive of the Dairy Research Institute, and prepared in response to a call by industry senior executives, who challenged the Institute in 2010 at its annual summit to develop a strategy for science and education-led economic advancement of the New Zealand food industry.

Dr Marshall said: “Our strategies are neither new nor unique, but, in the past, implementation by industry has failed. Crucially, we have provided a pathway and a proposed mechanism for action that will work. There is urgency now because New Zealand faces a mediocre economic future if we don’t drive the major recommendations in this report to fruition.

“Agri-food leaders need to know what to do, how to do it and how to develop the resources they need to do it effectively.”

Welcomed by the Minister

Minister for Primary Industries David Carter welcomed the report, which he said was a vital contribution.

“The Strategy Report highlights that if we are to achieve the standard of living we aspire to by 2025, we must treble the real value of our food exports to about $60 billion,” the Minister said, adding that to achieve a target of real compound growth rate of seven percent over the next 13 years, New Zealand needs to close a gap of current progress of around three percent.

“While the agri-food sectors have been successful, we need to grow faster. To realise growth, we need to collaborate, be innovative, build on our strengths and continue to earn our reputation for safe, high quality food, produced in a sustainable manner.”

New Zealand is lucky to have repositioned itself away from traditional markets, which are currently facing problems, towards Asia. “In the past financial year, exports to China have jumped by nearly 40 percent,” he said.

The Strategy

The task at hand “will not be achieved with business as usual,” Marshall explained.

He outlined the four transformational strategies proposed in the report are to:

  • Selectively and profitably increase the quantities and sales of the current range of agri-food products.
  • Profitably produce and market, new, innovative, high value food and beverage products.
  • Develop value chains that enhance the integrity, value and delivery of New Zealand products and increase profits to producers, processors and exporters, and
  • Become world leaders in sustainability and product integrity.

Four ‘enablers’ back the strategies. These include the development of transformational industry and Government leadership, strong consumer-driven export marketing of branded and consumer and ingredient product, increasing the capability and skills of the agri-food industry and supporting industries and increasing the amount and effectiveness of investment in innovation, research, development and extension supporting the agri-food industry.

He said the think-tank determined that current food industry strategies have not been achieved as they “depended too much on government taking the lead” and that the “captains of industry have not stepped up to take the leadership role.”

For that reason, the most important proposal is to establish an Agri-Food Board “to be the focal point for sector leaders to work together and for industry to lead the work with Government, overcoming barriers to implementation.”

Elements of the strategy link in with thoughts in KPMG’s Agribusiness Agenda for 2012, ‘People Unlocking the Future’ ably presented at the launch Ben van Delden. It also reinforces what the meat industry is already doing with the Red Meat Sector Strategy, B+LNZ Ltd chairman Mike Petersen said.

Strategic echoes include opening access to markets, together with the sector becoming more consumer-driven and collaborative. Discussion also worked its way around the need to attract, develop and retain new graduates and workers for the agri-food sector, the need to develop leadership within the industry and for behaviour and attitude change.

Over 120 attended the launch in Wellington that was attended by the Minister, agri-food industry leaders and senior government officials. Also speaking was NZ Merino’s John Brackenridge. The report will be on the agenda at the forthcoming Primary Industry Chief Executives’ Boot Camp in August at Stanford University, California.

Meat industry leaders, including Keith Cooper of Silver Fern Farms, Sir Graeme Harrison of ANZCO Foods, Sam Robinson of AgResearch, were amongst those who had contributed to the report.

The report is well worth a read to see where the sector’s going. Download a pdf copy of A Call to Arms: A Contribution to New Zealand Agri-Food Strategy or ask for a hard copy by emailing [email protected].