Benefits of the CPTPP free trade agreement

08 February 2018

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will be a free trade agreement involving 11 countries in the Asia-Pacific region, including New Zealand, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, and Viet Nam.

New Zealand’s 10 partner economies in the agreement:
  • are the destination for 31 percent of New Zealand’s goods exports (NZ$15.2 billion) and 31 percent of New Zealand’s services exports (NZ$6.9 billion) in the year to the end of June 2017.
  • have a combined population of 480 million people
  • include four of New Zealand’s top 10 trading partners (Australia, Japan, Singapore, and Malaysia).
  • include four countries with which New Zealand has never had a free trade agreement: Japan, Canada, Mexico and Peru. New Zealand export over NZ$5.5 billion of goods and services to these four countries.

Benefits for goods exporters

The CPTPP will provide significant benefits for New Zealand goods exporters across a range of sectors. Tariffs will be eliminated on all New Zealand’s exports to CPTPP economies, with the exception of beef into Japan; and a number of dairy products into Japan, Canada, and Mexico, where access will still be improved through partial tariff reductions and duty-free quotas.

CPTPP has the potential to deliver an estimated $222 million of tariff savings annually, with $92 million of those savings starting as soon as the CPTPP enters into force.

Benefits for services and digital exporters

The CPTPP will support the growing services and digital sectors, assist businesses of all sizes to trade, and provide greater opportunities to bid for government contracts.

CPTPP market access commitments in services sectors will provide greater openness and certainty over the conditions under which New Zealand businesses can provide services to overseas clients. Access to CPTPP markets has been locked in for New Zealand service providers across a range of sectors, including providers of professional, business, education, environmental, transportation and distribution services.
 

NZTE customers in the CPTPP region

NZTE is assisting to boost the export performance of 1550 New Zealand businesses exporting to the 10 markets of the future CPTPP region.


These CPTPP Exporters are supported directly by over 250 NZTE staff (both in New Zealand and in target markets), including 78 Customer Managers.




Raising standards for international business

Promoting sustainable economic development is also a prominent feature of what has been negotiated, with strong commitments to safeguard high labour and environmental standards across the Asia-Pacific region. For example, the CPTPP ensures that member countries have in place laws and practices governing workers’ wages and safety. For the first time in any of New Zealand’s trade agreements, commitments in these areas will be legally enforceable. This will raise standards in the region.

Protecting rights for New Zealanders

At the same time as supporting New Zealand’s trade ambitions, the CPTPP protects the unique status of the Treaty of Waitangi and the Government’s right to regulate in the public interest in areas like health, environment, and taxation policy.

For more information

Read the CPTPP Overview on the MFAT website