See also New Zealand’s TPP website, www.tpp.mfat.govt.nz .
The Trans-Pacific Partnership Agreement (TPP) is a free trade agreement (FTA) that will liberalise trade and investment between 12 Pacific-rim countries: New Zealand, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, the US and Viet Nam. Trade Ministers of the twelve countries announced the conclusion of negotiations on 5 October 2015 in Atlanta, Georgia. On 4 February 2016, TPP was signed by Ministers of the TPP countries in Auckland.
The 12 TPP Parties collectively constitute approximately 36 percent of world GDP – worth a total of US$28 trillion. TPP Parties include five of New Zealand’s top 10 trading partners (Australia, the US, Japan, Singapore, and Malaysia). TPP Parties are the destination for 40 percent of New Zealand’s goods exports (NZ$20 billion in 2014) and 47 percent of New Zealand’s services exports (NZ$8 billion in 2014). TPP Parties are the home to around 73 percent of New Zealand’s total overseas direct investment in 2014. 75 percent of the total foreign direct investment (FDI) in New Zealand was sourced from TPP countries in 2014.
This comprehensive agreement will remove barriers to trade for many New Zealand goods exporters in the Asia-Pacific region, including an estimated $274 million of tariffs paid on New Zealand exports each year, around half from entry into force of the agreement. New Zealand service suppliers and investors will also benefit from reduced barriers in the region, while outcomes on government procurement will provide access for suppliers to a number of international markets that are currently closed to New Zealand providers. Economic modelling commissioned by the Government estimates that TPP will contribute an additional NZ$2.7 billion each year to New Zealand’s GDP by 2030.
TPP will be open to future expansion. It provides a platform for wider, regional economic integration, and supports the foundation for a free trade agreement of the Asia Pacific.
Provisions in TPP safeguard New Zealand’s ability to make policy in important areas like health, environment, taxation policy and national security. A specific exception recognises the importance of the Treaty of Waitangi to New Zealand, in addition to policy flexibility preserved across key areas in TPP. As a result, nothing in TPP will prevent the Crown from taking measures that it deems necessary to meet its obligations to Māori, including under the Treaty of Waitangi. Further, New Zealand’s interpretation of the Treaty of Waitangi shall not be subject to the dispute settlement provisions of TPP.
On 20 January 2017, the Government of Japan notified New Zealand, as Depositary of the TPP, of the completion of Japan’s applicable legal procedures necessary for entry into force of the Agreement.
In a letter dated 30 January 2017, the United States sent a letter to New Zealand, as Depositary of the TPP, stating their intention not to become a Party to the TPP and that they have no legal obligations arising from their signature on 4 February 2016.
On 11 May 2017, the Government of New Zealand, as original signatory of the TPP, notified New Zealand, as Depositary of the TPP, of the completion of New Zealand’s applicable legal procedures for the entry into force of the Agreement.
The TPP has not yet entered into force.