Today’s announcement that the Trans-Pacific Partnership agreement (TPP) has been concluded is good news for Kiwi firms and households. It’s not perfect, and the dairy sector in particular will naturally be frustrated. But TPP offers valuable benefits – and limited costs – across the economy.
Achieving full tariff elimination over time, aside from beef into Japan and some dairy products, on all of New Zealand’s exports to some of the largest economies in the world, is a very positive outcome. That and the likely gains to New Zealand firms from lower costs of doing business in Asia-Pacific regional production networks and from enhanced investment flows, will positively contribute to lifting Kiwis’ living standards.
On the wider stage this New Zealand-initiated process has delivered the first large scale improvement in the global trading environment for years. It shows that globalisation’s support for improving world standards of living can continue. This is one more step in the long road to further integration in the Asia-Pacific region and puts pressure on others not involved to make similar adjustments.