Wednesday, 30 August 2017 10:55

Political consensus vital for TPP talks

Written by  Pam Tipa
Stephen Jacobi. Stephen Jacobi.

The government and the Labour Party should reach a bipartisan consensus on how to roll out the current Trans Pacific Partnership process, says trade expert Stephen Jacobi.

Negotiations are at a “delicate” stage.

“This is too serious for New Zealand to just leave to domestic politics in my view. That’s why we like bipartisanship,” Jacobi, executive director of the NZ International Business Forum, told Dairy News.

“We have an opportunity potentially to conclude the Trans Pacific Partnership before the end of the year among the 11 remaining parties, excluding the United State which has pulled out.

“It would be a lot easier to conclude that agreement if it wasn’t open to renegotiation.”

Labour finance spokesman Grant Robertson said last week NZ should hold out for a better Trans Pacific Partnership (TPP) deal that includes blocking offshore buyers buying existing homes.

Jacobi says if we reopen negotiations, other countries will come up with different issues and “we will see a repeat of the eight years of negotiation we just spent trying to get TPP right. That’s the risk.

“Of course at this stage it is hard to say whether others will want to reopen negotiation. It is conceivable they might. It would be particularly damaging if the market aspects got reopened because that was a very delicately balanced exercise.

“For those reasons we would rather stay with TPP as it is at the moment.

“As you know the risk for us is if we don’t get TPP through we will be seriously squeezed in the Japanese market.”

The Europeans and the Australians now have free trade agreements with Japan. The Australians already have a much stronger advantage over us in beef, the Europeans will have that too once that is ratified.

The outcome for dairy wasn’t as strong in the TPP as it was for beef but nevertheless the same conditions will apply, say Jacobi.

“Over time Australia and the European Union would steal a march on us.”

That would apply to many products including dairy, and horticulture, wine and wood would also be exposed.

“The real gains from TPP came to us from Japan in the end, not from the United States,” says Jacobi. “It’s Japan we don’t have an FTA with; it is the only country in Asia we don’t have one with now.

“A lot rides on getting TPP through and things are very delicate at the moment. Calling for renegotiation is not a straightforward exercise and I don’t know that New Zealanders would be very well served to be the ones calling for it.”

TPP has got to this stage against the odds, he says.

“Everyone assumed once the United States pulled out the others would dissipate and all credit to the Government and negotiators for keeping up this work.

“But the Japanese are the key in this. They have put a lot of emphasis on this agreement for their own domestic restructuring so they clearly are not wanting to waste all that effort and that of course encourages other people to stay on board as well.

“Things are delicate. There’s been a meeting last month in Japan, there’s another one coming up next month in Australia. It is all around the time of the election.”

That is why Jacobi says a bipartisan agreement between the two major parties is needed.

The Cabinet has formally approved a negotiating mandate for the TPP 11.

The TPP11 are NZ, Australia, Japan, Malaysia, Singapore, Brunei, Vietnam, Peru, Chile, Mexico and Canada.

More like this

Gaslight much?

OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts started after their disastrous Covid response; now trying to undermine the Covid inquiry to protect his own backside.

The Cook Islands squabble

The recent squabble between the Cook Islands and NZ over their deal with China has added a new element of tension in the relationship between China and NZ.

Featured

Australia develops first local mRNA FMD vaccine

Foot and Mouth Disease outbreaks could have a detrimental impact on any country's rural sector, as seen in the United Kingdom's 2000 outbreak that saw the compulsory slaughter of over six million animals.

NZ household food waste falls again

Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.

Editorial: No joking matter

OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.

National

All eyes on NZ milk supply

All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.

Machinery & Products

Leader balers arrive in NZ

Officially launched at the National Fieldays event in June, the Leader in-line conventional PRO 1900 balers are imported and distributed…

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Full cabinet

OPINION: Legislation being drafted to bring back the controversial trade of live animal exports by sea is getting stuck in the…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter