Tag Archives: TPP

TPP negotiations need to deliver for agriculture

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New Zealand’s red meat sector is encouraging all negotiating parties in the Trans-Pacific Partnership to work tirelessly to ensure this agreement can be completed by October 2013.

Key outcomes from the completion of TPP must be the elimination of agricultural trade barriers and the opportunity for greater economic integration across the Asia Pacific region, says Beef + Lamb New Zealand (B+LNZ Ltd) and the Meat Industry Association (MIA).

The B+LNZ and MIA chairmen, Mike Petersen and Bill Falconer (respectively) reinforced the need for reduced barriers to agricultural trade, including the elimination of tariffs and other technical barriers as a priority. Achieving that would create benefits and opportunities for all TPP members exporting red meat products.

“The TPP agreement has the potential to create new opportunities for all red meat exporting countries through improved market access, reducing both tariff and non-tariff barriers, and trade facilitation in the Asia-Pacific region,” Falconer says.

The TPP agreement also offers the opportunity to do business more easily and transparently.

B+LNZ and MIA are present at the TPP negotiating round in Auckland, meeting with the agricultural trade negotiators and talking with agricultural and meat producer representative organisations from partner countries.

Petersen says the New Zealand red meat sector had well established links with a number of producer organisations, including the Canadian and Mexican beef producers.

“Both Canada and Mexico are part of the Five Nations Beef Alliance along with Australia, the United States and ourselves. Together, we represent producers from countries that account for one-third of global beef production and approximately half of global beef exports.

“The Alliance will be presenting its views on what it considers would be a successful outcome for the beef trade from these negotiations. Our view is that we must achieve a high quality comprehensive agreement that acknowledges the importance of beef production and consumption for all participating countries.”

B+LNZ and the MIA will continue to monitor progress over coming months and, where desired, assist negotiators to address the key issues relevant to the red meat sector in order to achieve a satisfactory outcome.

More support for TPP

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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

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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).

Meat industry leaders support TPP negotiations

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Heads of various meat industry organisations  have shown their public support for the Trans Pacific Partnership (TPP) trade agreement negotiations underway in Auckland this week between eleven APEC economies.

They are amongst more than 50 business leaders from some of New Zealand’s largest and most successful companies and business organisations to have signed an open letter to Prime Minister John Key, underlining the importance of international trade and investment for New Zealand.

Among the signatories are Alliance chief executive Grant Cuff, ANZCO Foods’ managing director Mark Clarkson, Silver Fern Farms’ Keith Cooper, Greenlea Premier Meats’ Tony Egan and Sir James Wallace chairman of Wallace Corporation alongside Meat Industry Association chairman Bill Falconer and Beef + Lamb NZ Ltd’s chairman Mike Pedersen and chief executive Scott Champion.

“The signatories to the open letter represent a cross section across all major export sectors in New Zealand, including agriculture, forestry, fishing, horticulture, wine, manufacturing, technology and Maori business. Together they either directly employ, or their members employ, an enormous number of Kiwis,” says the chairman of the New Zealand International Business Forum (NZIBF), Sir Graeme Harrison.

“These business leaders welcome the TPP round taking place in Auckland this week and commend negotiators from the TPP economies for their efforts to conclude a future agreement which should bring benefits for all member economies”.

“The group is aware the negotiation poses challenges for New Zealand policy settings in a number of areas and that the negotiation is complex. We have confidence that Trade Minister Tim Groser and his officials will seek solutions that meet New Zealand’s national interests.”

“We see great advantages for New Zealand arising from a future agreement that is high quality, comprehensive and ambitious, one that eliminates trade barriers, lowers the cost of doing business and makes improvements to the way regional supply chains can link producers and consumers in the region.”

The open letter coincides with the launch of a new business-led initiative, Trade Works, a website (www.tradeworks.org.nz) to help Kiwis better understand the benefits of trade and investment for New Zealand, and understand the potential benefits of TPP.  Funding for the website has been provided by the NZ US Council and the website has been built with the support of thirteen business organisations representing the main export sectors.

“The Council and its partners see value from an effort to create a TPP which meets business and wider needs and reflects the way business is being done today and will be done in the future.  This will assist economic growth and job creation in New Zealand.  Our new website signals that we are also ready to participate with other members of civil society in a dialogue about how TPP can contribute to what it is best for New Zealand,” says the chairman of the NZ US Council, Rt Hon James Bolger.

 

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

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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

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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

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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.”

 

Building Export Markets, government releases progress report

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The Government has today unveiled its first Business Growth Agenda Progress report on actions to boost New Zealand exports. It is a timely appearance as the Primary Sector Boot Camp reaches its halfway point in the US.

Launched by Finance Minister Bill English and Economic Development Minister Steven Joyce, the Building Export Markets report from the Ministry of Business, Innovation and Employment (MBIE) confirms the Government’s target to increase the contribution of exports to the economy from 30 percent to 40 percent of GDP by 2025.

English says this a challenging target and achieving it will require a concerted effort by New Zealand over many years. It will also require the continued development of new and expanding export markets.

“It is only through exporting that New Zealand, with a small domestic market, can deliver the growth and productivity required to enhance the wealth of our country and create more and higher paying jobs,” he says.

“Committing to this ambitious goal means the Government will stay focused on supporting firms to grow their exports.”

Steven Joyce says the report highlights the significant shift in economic power from the West to the East that is expected to happen over the next 20 years.

Building Export Markets is the first of six progress reports on the government’s Business Growth Agenda. Others will address innovation,skills, capital markets, infrastructure and resources. The reports lay out the work programme government agencies are implementing. Each has an informal portfolio group of ministers specifically grouped around the work streams, to drive the Business Growth Agenda forward and focus on what matters to business and companies.

Government intends to see three additional cross-cutting themes to be reflected across the Business Growth Agenda workstreams. These are: Maori Economic Development, Greening Growth; and Regulation. Better telling the ‘New Zealand Story’ is another Government priority and work is already underway with key stakeholders on “developing a compelling and consistent narrative about our country’s special qualities that work for a range of exporters and sectors,” according to the Ministers.

Actions contained in the Building Exports report include improving access to international markets, making it easier to trade from new Zealand, helping businesses internationalise, increasing value from tourism and high-tech manufacturing, growing international education and strengthening high-value manufacturing (including food and beverage manufacturing) and services exports.

“This first report is important, as it lays out the challenge for achieving growth – which is about being much more closely linked into the rest of the world and taking advantage of our opportunities,” says Joyce.

“While the world is going through tough times, the growth in Asian incomes will occur over the next 20 year. So there will be job growth, New Zealand’s challenge is to ensure it occurs in New Zealand, not in Australia, or somewhere else.”

The report shows that beef, lamb and wool accounted for 13 percent of New Zealand’s total $47.7 billion goods exports in 2011.

The Building Export Markets report is available here.

Carter in US for boot camp

Because of its size and importance, New Zealand’s primary sector, which currently accounts for 55 percent of exports is “critical” to achieving the government’s desired growth, the report says, so the outcome of this week’s Primary Sector Boot Camp at Stanford University will also be critical.

Minister of Primary Industries, David Carter, is part of the nine-strong Export Markets ministerial group, which also includes Prime Minister John Key, Steven Joyce, Murray McCully and Tim Groser.  Carter is travelling in the United States this week to attend the Boot Camp and also to talk with US agriculture sector political leaders and officials.

“This is an excellent opportunity for the leaders of some of our most forward-thinking primary sector companies to collaborate on formulating a plan to leverage New Zealand’s competitive advantage globally,” Carter said before he left.

“It’s not often that we can get a powerful group like this representing over 80 percent of New Zealand primary sector exports around the table, and I am confident of a positive outcome.”

About 20 leaders from New Zealand’s dairy, meat, seafood, wine and horticulture industries are among those attending the week-long camp alongside top government representatives from MPI and NZ Trade and Enterprise. The group will be hearing from first class speakers to inspire and motivate their thinking. The event has been supported with a $100,000 grant from AGMARDT.

Among the range of agricultural organisations the Minister is meeting with separately to discuss common New Zealand–US primary industry interests are the Tri-Lamb Group and US Cattlemen’s Association.

“These meetings further strengthen the New Zealand-US bilateral relationship and give our two countries the opportunity to canvass a range of issues in the primary industries policy area.  It is an opportunity to highlight the excellent collaborative work we already have with the US though the Global Research Alliance on agricultural greenhouse gases,” says the Minister.

“I particularly look forward to discussions on the mutual benefits that will be realised through the Trans-Pacific Partnership free trade agreement currently under negotiation.

“The TPP is important to New Zealand’s trade future and this visit will provide the opportunity to take political level readings on its progress.”

In the news this week (3)

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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

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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.