Nz Trade Agreements
New Zealand is a small island nation that depends heavily on international trade for its economy. As a result, the country has established numerous trade agreements with other countries to facilitate economic growth and development. These agreements have helped to open up new markets for Kiwi businesses, increase innovation, and create jobs. In this article, we`ll take a closer look at the different trade agreements New Zealand has signed and what they mean for the country`s economic future.
The Trans-Pacific Partnership Agreement (TPP)
The Trans-Pacific Partnership Agreement, also known as TPP, was a trade agreement between 12 countries that was signed in 2016. The purpose of the agreement was to create a framework for trade between these countries, which together make up 40% of the world`s GDP. The TPP was intended to reduce trade barriers, encourage economic growth, and create jobs.
One of the benefits of the TPP for New Zealand was its potential to improve access to markets in Asia, particularly in Japan and the United States. The agreement also included provisions for protecting intellectual property rights, environmental regulations, and labor standards.
Despite the potential benefits, the TPP faced significant opposition in New Zealand, with concerns raised about the impact on the country`s sovereignty and the potential for increased competition from foreign companies. In the end, the TPP never came into force, as the United States withdrew from the agreement in 2017.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Following the withdrawal of the United States from the TPP, New Zealand and the other remaining 11 countries continued negotiations to create a new agreement. The result was the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which was signed in March 2018.
The CPTPP is similar to the TPP in many respects, but with a few key differences. Most notably, the new agreement does not include the United States, but it does include Canada and Mexico, as well as several countries in Asia and the Pacific. The CPTPP still includes measures to reduce trade barriers and protect intellectual property rights, but also includes new provisions related to e-commerce and state-owned enterprises.
For New Zealand, the CPTPP provides another opportunity to expand its markets and improve access to key trading partners in Asia and the Americas. It is also seen as a way to diversify the country`s trading relationships and reduce its dependence on any one country or region.
The New Zealand-China Free Trade Agreement (FTA)
China is New Zealand`s largest trading partner, and the two countries signed a free trade agreement in 2008. The FTA was the first such agreement China had signed with a developed country, and it has helped to significantly increase New Zealand`s exports to China.
Under the FTA, New Zealand has seen an increase in exports of dairy, meat, and forest products, among other goods. The agreement has also helped to encourage investment between the two countries, with Chinese companies purchasing a number of New Zealand businesses in recent years.
While the FTA has been beneficial to New Zealand, it has also faced criticism in some quarters for allowing Chinese firms to buy up New Zealand assets and for failing to address concerns about human rights and environmental issues in China.
Conclusion
New Zealand`s trade agreements play a crucial role in the country`s economic growth and development. By opening up new markets and reducing trade barriers, these agreements help to create jobs, encourage innovation, and diversify the country`s trading relationships. While they are not without controversy, the benefits of these agreements outweigh the risks, and New Zealand will undoubtedly continue to pursue new opportunities for international trade in the years to come.
