Australia has become the sixth country to ratify the
Comprehensive and Progressive Trans Pacific Partnership (CPTPP) Agreement,
after Japan, Singapore, Mexico, New Zealand and Canada.
The CPTPP will enter into force before the end
of this year with the first tariff reductions taking effect on December 30, with a second round of reductions taking place on 1 January.
Immediate benefits to New Zealand exporters in new
The benefit to New Zealand exporters will be immediate,
particularly in those countries with which New Zealand has not previously had a
free trade agreement – Japan, Mexico and Canada.
All tariffs on New Zealand wine will be eliminated, for
example, including to Canada, which is our fourth largest wine-market. But preferential
tariff access is not automatic - goods will need to meet the rules of origin
requirements and be accompanied by appropriate documentation.
Businesses can check the tariff rates that apply to their
exports under CPTPP, and the applicable rules of origin, by using the Ministry
of Foreign Affairs and Trade’s Tariff Finder (https://tariff-finder.fta.govt.nz/).
Service suppliers and investors will also derive benefits.
Each CPTPP member has undertaken not to limit access into their market, or
discriminate in favour of their own against service suppliers from other
This will provide certainty to businesses looking to expand
offshore and invest in the region.
Of particular interest to New Zealand exporters are the
rules on e-commerce. These are designed to ensure that e-commerce can flow
freely between countries while allowing them to take necessary measures such as
protecting their citizens’ privacy.
What happens next?
Five countries have yet to ratify: Brunei Darussalam, Chile,
Malaysia, Peru and Viet Nam. Of these,
Peru is the only country with which New Zealand does not have a previous free
trade agreement, making its ratification of particular interest to open up new
Other countries have also expressed formal interest in
negotiating accession to CPTPP, including Columbia, Korea, and (despite its
lack of a Pacific coastline) the United Kingdom.