Beef + Lamb New Zealand Chief Executive Sam McIvor welcomes the significant achievement that moves the agreement one step closer to being brought into force.
The agreement is scheduled to be signed early March in Chile. It will then need to go through each member country’s parliamentary process.
“The CPTPP is crucial for the sector, as it provides significant market access improvements and – as we understand it – none of these have been modified during the recent negotiations,” Mr McIvor says.
“It will allow the sector to stay competitive in key markets, such as Japan where New Zealand has already lost significant market share as a result of other countries, including Australia, having preferential access.”
The CPTPP also prevents Japan from applying a World Trade Organisation safeguard, which has seen it raise tariffs on New Zealand frozen beef exports from 38.5% to 50% from 1 August to 31 March 2018. Australia is exempt from these safeguards (due to their Free Trade Agreement (FTA) with Japan) and faces tariffs of 29.9% and 27.2% on chilled and frozen beef, respectively.
Mr McIvor says the agreement also benefits New Zealand as a whole. “Exports from the sector support 80,000 jobs and families across the country.”