May for US-NZ Pacific Partnership Forum

The US-NZ 2013 Pacific Partnership Forum will be held in Washington, DC from May 19 – 21 at the Grand Hyatt Hotel. The Forum will bring together New Zealand and US game-changing leaders from business, government, and non-profit organisations to explore the next opportunities for economic growth and cooperation.

Organised by the United States | New Zealand Council in Washington, DC and the NZUS Council in New Zealand, the two-day meeting will focus on the two countries’ shared interests and complementary visions for the future.

The success stories and vision of both NZ and US companies will be prominently featured.

“Today’s NZ – US relationship is about leadership, innovation and a readiness to be a catalyst for positive change in the world”, said William Maroni, president of the US | NZ Council.

“By showcasing examples of real innovation, next year’s Forum will help inform, inspire and shape the next generation of though leaders in business and public policy.”

The 2013 Forum will be the fifth gathering of its kind. It comes at a time when countries and companies will compete to discover, define and deliver the next opportunities in the Asia-Pacific region. The Forum also occurs at a time when newly-appointed Members of President Obama’s Cabinet and newly-elected Members of the U.S. Congress will be defining their goals for the next two to four years.

Stephen Jacobi“Next May is likely to be a particularly important time in the Trans-Pacific Partnership (TPP) negotiations,” said Stephen Jacobi, executive director of the NZUS Council.

“The 2013 Pacific Partnership Forum will foster the type of dialogue that can help move TPP to a successful completion.”

New Zealand and the United States are influential global voices for open markets, regional growth and stability, individual freedoms, and a sustainable environment.  The 2013 Forum will build on this legacy by focusing on Asia-Pacific issues.  The program will include dynamic keynote presentations, diverse panel discussions, valuable networking opportunities, executive-level exchanges, and a variety of social and cultural activities.

Exclusive sponsorship opportunities to host specific portions of the Forum are available, and the event is open to interested parties.  For more information, contact [email protected].

More support for TPP

More business leaders are speaking publicly in support of the Trans-Pacific Partnership (TPP) trade agreement that is currently being negotiated in Auckland.

Business NZ chief executive Phil O’Reilly has said the TPP has the potential to raise living standards around New Zealand.

Speaking at the TPP Forum he said the trade agreement goes beyond the 20th century approach of simply seeking to reduce tariffs and border restrictions.

“It recognises the fact that industry now relies on complex supply and value chains involving producers in many different locations and countries. New Zealand is deeply involved in many international value chains and the TPP will enable more New Zealand businesses to trade effectively in more countries and that means increased growth and more jobs for New Zealanders.

“The particular value of the TPP is that it involves many of the fastest growing economies on earth. Economic growth in the Asia-Pacific region is surging and TPP will help unlock that growth for New Zealand’s benefit.

“It’s appropriate that New Zealand’s negotiators are focused on protecting and advancing our interests including public health, intellectual property, the environment and the Treaty of Waitangi and success in these areas will mean a high-quality trade deal that is sustainable in the long-term.”

Agreement vital to New Zealand economic success

Also speaking in Auckland at the Stakeholders Forum was Suze Reynolds, NZUS Council associate director who argued that the agreement is vital to New Zealand economic success.

“New Zealand has always been a nation of traders, but we need a level playing field to compete in competitive world markets,” she said. “As a country, we desperately need to grow the economy and grow employment. More trade means more jobs.”

International trade accounts for around two thirds of new Zealand’s total economic activity. In 2011, New Zealand’s merchandise exports totalled $48 billion, while service exports totalled $13 billion.

“These are big numbers, but we are not paying our way. We still spend more than we earn,” said Reynolds. “We can’t prosper by selling to ourselves, we can’t eat all we produce and we can’t produce all that we need. Free trade gives us more choice. It helps to diversify and deepen our economy. It exposes our businesses to innovation and makes them more efficient, it attunes them to international markets and exposes them to high value customers.

Research undertaken by the East-West Center, in Honolulu, states that the TPP could add around $2.1 billion to the New Zealand economy by 2025.

 

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).

Business as usual for exports to US, with TPP next focus

It’s business as usual for New Zealand meat exporters following the re-election of United States President Obama for another four year term, but it’s not time to relax.

Prime Minister John Key has already congratulated the President on his “hard fought victory” and re-election, tweeting last night that he looks forward to further developing the close and enduring relationship between the two countries.

“There will be many opportunities to enhance the relationship, which is built on shared values and a commitment to improve the prosperity and well-being of our people through initiatives such as the Trans-Pacific Partnership (TPP).”

Two-way trade with the US is valued at over $8 billion and the US is a leading source of investment, innovation and business ideas, says the NZ US Council. It is actively engaged in co-ordinating business and government efforts towards concluding a comprehensive, high quality result to the TPP negotiations.

NZUS Council executive director Stephen Jacobi comments that now the election has been decided, it’s positive news for exporters that there will be some certainty over the next four years.

“It’s business as usual for the relationship.”

President Obama will be very energised over his second term he notes. However, that the President will have to work hard on bringing the Republicans with him.

“The TPP initiative is good, in that it is something that can unite both sides, which will have a positive impact on the negotiations.”

The President’s biggest challenge is the state of the US economy, currently facing a ‘fiscal cliff’, and his ability to avoid a complete gridlock between Senate with its Democrat majority and the primarily Republican House of Representatives.

“How he deals with that has implications for New Zealand meat exporters as it will impact on the exchange rate,” says Jacobi, adding that one of the current US solutions – printing money – is bringing the value of their dollar down but is forcing the Kiwi dollar up, making it difficult for New Zealand exporters to operate.

With the Republicans advocating for more farm subsidies, keeping an eye on progress in the US Farm Bill will be important for New Zealand meat exporters too.

The focus now is the next TPP round of talks which take place in Auckland 3-12 December with New Zealand in the chair and hundreds of negotiators from around the Asia-Pacific attending the meeting. It is fortunate that the chief US negotiator remains unchanged, with Barbara Weisel remaining in her position. However, it’s important to note everything won’t be finalised at that meeting. “It’s a continuing process but Auckland will set out how negotiations will roll out in 2013,” says Jacobi, adding that 2013 is expected to see finalisation of the agreement.

Beef will be on the agenda as Canada and Mexico join the table as full members for the first time. Jacobi says he will also be interested to see how other economies, such as Japan, react to the election news as it may speed up their entry to the trade agreement.

The concern for Jacobi is the anti-globalisation movement, which is expected to be active around the time of the talks. He calls for industry, companies and farmers to stand together to explain why it’s important for New Zealand to be in the trade negotiations.

“We need to add our voice to the multitude in support of the negotiations,” he says.

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The US election may bring little change to the Senate agriculture committee with the Democrats retaining control according to Food Business News, while retirements factor into the House of Representatives’ agriculture committee with the Republicans maintaining control there. The finance committees face a similar scenario, says Jacobi. It is likely, however, that there will be a new US trade adviser. Mike Froman, currently assistant to the President and deputy national security adviser for international economic affairs – and a former Harvard classmate of Obama’s – is hotly tipped for the job.

 

 

Kiwis keeping an open mind on TPP

The majority of Kiwis support the idea of a Trans Pacific Partnership (TPP), new research has found.

Research commissioned by the NZUS council has found that 56.3 percent of New Zealanders surveyed support or strongly support the TPP, 13.4 percent oppose the negotiation, with 30.4 percent keeping an open mind.

“The research is an important contribution to the debate around free trade. It shows New Zealanders are preared to see where the TPP negotiation leads rather than give in to scare-mongering,” says NZUS Council executive director Stephen Jacobi.

The research found that just 60.5 percent believe New Zealand needs to do more to connect with global markets, with just 9.4 percent opposing such moves.

The next TPP negotiation round will take place in Auckland in December.

The research also found that a majority of Kiwis (64.4 percent) believe increased trade between new Zealand and the United States is a good idea. Only 12.1 percent are opposed to it.

“Freer trade will create more opportunities for exporters and more choice for consumers and ultimately more jobs for Kiwis. The TPP provides an opportunity to maximise these benefits TPP is a work in progress but it’s an important first step towards adopting a seamless economic space around the Asia-Pacific region,” says Jacobi.

The research was conducted by Buzz Research between 18-21 September 2012 with 1,018 respondents aged 18-64 in New Zealand. It has a margin of error of +/- 3.1.

Asia-Pacific business organisations urge TPP completion

As the Asia-Pacific Economic Co-operation (APEC) Economic Leaders Meeting opens in Vladivostok, Russia, today business organisations from around the APEC region have once again joined together to urge participants in the Trans-Pacific Partnership (TPP) to complete negotiations as soon as possible in 2013 and to hold to the ambitious aims set for the final agreement.

According to a joint statement, the Asia-Pacific business organisations from New Zealand, Chile, Canada, Peru, Singapore and the US, urge the negotiators to maintain the momentum in the negotiations to achieve the vision of TPP. “While substance will need to drive the negotiating agenda, we urge that all steps be taken to bring the negotiations to a conclusion in early 2013.”

Asia-Pacific business organisations have reaffirmed their view that a successful TPP will be comprehensive, high quality, ambitious “with the elimination of tariffs and non-tariff barriers on trade in goods and services and investment no later than 2020″, innovative, enforceable and a living agreement.

Amongst business leaders at APEC Vladivostok are Erica Crawford of Kim Crawford Wines, Malcolm Bailey of Fonterra and Ian McCrae, Orion Health. Members of the APEC Business Advisory Council also attending the talks are Tony Nowell of Valadenz, Wayne Boyd (Vulcan Steel Ltd), Maxine Simmons (NZBio) and Stephen Jacobi of the NZ-US Business Council who is an alternate member.

“TPP provides a potential pathway for making progress towards the Free Trade Area of the Asia-Pacific,” says Jacobi. “TPP is a complex undertaking but the potential gains to growth and jobs are simply too big to be left on the table.”

 

In the news this week (3)

People are key to the success of Riddet Institute’s Agri-Food Strategy wrote Jon Morgan in a Dominion Post opinion piece early on last week. “The prize is too great to abandon,” he said.

So, focus is now shifting to the week-long chief executives’ Primary Sector Boot Camp at Stanford University in California later this month, which will be attended by over 20 chief executives including meat industry leaders Keith Cooper of Silver Fern Farms and Mark Clarkson of ANZCO Foods, alongside Minister of Primary Industries David Carter. On the table for discussion will be the Agri-Food Strategy.

Agmardt is principal sponsor of the private sector-led chief executive forum designed to unlock the global potential of New Zealand’s primary sector. At the time of the sponsorship announcement at the end of April, Jeff Grant chairman of the Agmardt board of trustees said he regarded the boot camp as an ideal fit under the grant body’s new strategic priorities.

“A key outcome of the boot camp is to explore and drive in-market collaboration within New Zealand’s primary sector, which is strongly aligned with Agmardt’s new strategy to fund activities that enable New Zealand agribusiness to identify and explore potential opportunities within the global marketplace.”

Grant said the willingness by senior industry leaders to be involved in the camp to discuss and explore strategies for greater collaboration and alignment across a wide range of primary industries, “is extremely encouraging.”

Other supporters of the Primary Sector Boot Camp, which will comprise leaders from the dairy, beef, sheep, seafood, viticulture and horticulture sectors, include the Ministry of Science and Innovation, the Ministry for Primary Industries and NZ Trade and Enterprise.

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Other news appearing over the week included:

Protein sources of the future –A new New Zealand/Dutch study has outlined the coming challenges to meeting future demand for protein. In a review published this week in the journal Trends in Food Science and Technology, Dr Mike Boland from the Riddet Institute and his colleagues at the Wageningen University in the Netherlands have drawn on a range of research sources to peer into the future of the world’s food supply. They say, as demand is outstripping supply of meat, mankind will “need to get creative” with its protein sources, considering competition between humans and pet food industries, noting that rabbits and other novel animal species, “should not be discounted as having an important part to play in future animal protein production systems,” and speculate that there may be ways to derive dietary protein from food waste from biofuel crop leftovers. Whatever happens, consumer acceptance will be key, say the authors.

New NZTE chairman – Interesting to note that former Fonterra chief executive, Andrew Ferrier, has been named as the new chairman of the New Zealand Trade & Enterprise (NZTE) board. Replacing Jon Mayson, he will commence his three year term on 1 November. Announcing the appointment, Economic Development Minister Steven Joyce says that Ferrier will bring “strong governance and strategic capability to the NZTE board”. Ferrier is a director of Orion Health Ltd and CANZ Capital Ltd. He was appointed to the University of Auckland Council in March 2012. Prior to his work with Fonterra, he was involved with the global sugar industry. Born in Canada, he has been a New Zealand citizen since 2008.

A new Code of Welfare for Meat Chickens came into effect on 26 July, setting out the minimum standards and best practice guidelines for the poultry industry. The new Code replaces the Code of Welfare for Broiler Chickens that was released in 2003. The new Code has a broader scope and includes chickens that have access to the outdoors, says the National Animal Welfare Advisory Council (NAWAC). “Another key change is that farmers will have to take the environment of the chicken into account when deciding how many chickens to keep in a designated area,” NAWAC chair John Hellström says. “Farmers will also be required to stay within the minimum standards for stocking density, but they will now have to also consider things like litter quality, lighting, air quality and temperature when deciding how to house their chickens.” Find out more here.

NZUS Council sponsors MPs visit to Washington – Two MPs Peseta Sam Lotu-Liga and Hon Shane Jones, co-chairs of the New Zealand US Parliamentary Friendship Group, recently returned from a successful NZUS Council sponsored visit to Washington DC. The visit – particularly timely given the stage of the Trans Pacific Partnership negotiations – raised NZ’s profile and also gave the MPS the chance to gain valuable insights about US negotiating interests. In a full programme over a four-day visit, the MPs met with members of the Friends of NZ Congressional Caucus and a range of Congressional representatives and had meetings with senior officials in the State Department, Treasury and US Trade Representative’s office. They were also guests of honour at a well-attended lunch hosted by the US NZ Council. Other guests included Congressional staff, senior US company executives and Council members and supporters. The NZ US Council met the costs of the MPs domestic travel in the US and related on-the-ground costs. Arrangements in Washington were made by the New Zealand Embassy.

World price slump put lamb back on Kiwi menus – the NZ Herald reported over the weekend on the news that prices for Kiwi consumers are down too and they are responding enthusiastically. Read more… 

Finally, with the London Olympics in full swing this week, it seems only right to congratulate all of the Kiwi athletes, but particularly B+LNZ Inc’s bronze medal award-winning Iron Maidens Rebecca Scown and Juliette Haigh for their  success in the women’s pairs (rowing) and Alison Shanks (cyclist) for her tremendous efforts in the team event. All the best now to Sarah Walker (BMX) for her event yet to come on the world sports stage. Go Team NZ!!


 

 

 

 

 

Canada joins TPP

Canada is also joining the Trans Pacific Partnership (TPP) negotiations.

The move, announced by New Zealand Minister of Trade Tim Groser today and following the news that Mexico was to join the negotiations earlier this week,  “demonstrates how dynamic this consultation process is,” the Minister says.

“Our vision for the TPP has always been to create a high-quality and comprehensive trade agreement which over time will act as a platform for wider Asia-Pacific trade liberalisation and economic integration.”

It shows that progress is being made in building an open and inclusive agreement, says the NZUS Council.

“Canada’s decision to join the TPP negotiations following Mexico’s announcement  is further proof that TPP is open to new members who believe they can meet the high standards set by the agreement,” says NZUS Council executive director Stephen Jacobi.

“Canada is a major global economy and a long-standing friend of New Zealand.  A successful outcome to the TPP negotiations will allow the economic relationship between New Zealand and Canada to reach a new level”.

New Zealand exports to Canada in 2011 were worth $597.4 million and it was our 19th largest export market. The top exports were sheep meat, beef and wine.

Jacobi foresees tough negotiations ahead on market access for agricultural products given that Canada maintains tight restrictions on supply managed industries including dairy and poultry.

“The NZUS Council’s submission to the New Zealand Government last year made clear that we considered Canada’s supply management policies incompatible with the vision of TPP as a comprehensive, high quality and ambitious agreement.  These differences will now need to be resolved at the negotiating table”.

Jacobi noted that Japan was continuing to follow the TPP process closely.

“We look forward to Japan joining the negotiations once the Japanese Government is  confident it can meet the high ambition of TPP and consultations are complete,” said Mr Jacobi.

Like the process for Mexico, the next step with regard to Canada joining the negotiations would be for the nine current TPP participants to complete any applicable domestic legal procedures. Following this, Canada would formally join the negotiations as a new participant.