Monday, 15 April 2013 15:59

Cautious welcome for Japan to TPP trade negotiations

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JAPAN IS one of the world’s most protected dairy sectors, says the Dairy Company Association of New Zealand (DCANZ), which is ‘cautiously’ welcoming the country to the Trans Pacific Partnership (TPP) free trade agreement.

 

DCANZ chairman Malcolm Bailey says Japan signalling its intention to enter into the TPP is a significant achievement. However he hopes Japan’s entry won’t delay the conclusion of negotiations beyond October 2013, and that it will support the basic premise of TPP. 

Japan is a large dairy market and its entry into the TPP provides an opportunity for New Zealand to negotiate improved access for its dairy products.

“In 2012 New Zealand exported US$536m (NZ$648m) dairy products to Japan, but it is [a] protected dairy sectors… with high tariffs on imports,” Bailey says.

“We encourage Japan to uphold the commitment made by TPP leaders in Honolulu in 2011, which was the comprehensive elimination of market access barriers like tariffs on traded goods. If Japan is willing to tackle these tariffs then their joining should be welcomed by dairy exporters and by Japanese food companies and consumers.”

Federated Farmers also welcomes the Japanese Prime Minister, Shinzo Abe’s signals that Japan wishes to join Trans Pacific Partnership (TPP) negotiations.  “The Japanese market sets very high standards for its food,” says Bruce Wills, Federated Farmers president.

“Thankfully, New Zealand products are held in high regard by Japanese consumers and the country is our fourth largest export destination worth NZ$3 billion.”

Dairy products are among our leading exports to Japan, says Wills.Interestingly our imports from Japan are also worth $3 billion. 

“Japan’s entry into the TPP would be of great mutual benefit for the primary industries,” Wills says.

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