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Feds president William Rolleston.
Feds president William Rolleston says the TPP Agreement appears to be beneficial for agriculture and New Zealand.
Rolleston says the deal, although not as comprehensive as one would have liked at the outset, appears to be beneficial for agriculture and New Zealand.
"While these trade deals are never perfect, opponents of the TPP should consider the serious consequences that would be faced by New Zealand if we were not part of such a trade agreement, should the Government be unable to secure Parliamentary agreement," says Rolleston.
"The conclusion of the TPP negotiations is the start of a journey of trade liberalisation, a journey some countries find harder than New Zealand."
Rolleston says tariff savings of $259 million per year, including $72 million for meat exports and $102 million for dairy exports, will boost farmer's incomes and the economy as a whole.
The TPP is the first free trade agreement with the US, Japan, Canada, Mexico and Peru. Rolleston says trading with the first and third largest economies, the US and Japan respectively, will benefit New Zealand.
"The other 11 member counties currently account for over 40% of New Zealand's exports, with improved access to such large economies we are bound to see even larger boosts over time."
In addition to tariff reduction, Federated Farmers are pleased that the TPP will also allow for a reduction in non-tariff barriers to trade, give more certainty to investors and ensuring fair access for New Zealand firms doing business in TPP countries.
"While it would have been great to see dairy tariffs eliminated altogether and for a greater range of products, preferential access to new dairy quotas into these markets should be helpful." says Rolleston.
"It's now up to each government, including New Zealand, to get TPP through their domestic processes. Federated Farmers will continue to engage with the government during this time."
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