Monday, 18 March 2013 09:59

Cautious welcome for Japan

Written by Pamela Tipa

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The Dairy Companies Association of New Zealand (DCANZ) has cautiously welcomed Japan to the Trans Pacific Partnership (TPP) free trade agreement.

DCANZ Chairman Malcolm Bailey says it is a significant achievement to have Japan enter into the TPP. However, at the same time he hopes that Japan's entry won't delay the conclusion of negotiations beyond the October 2013 timeline and that they will support the basic premise of TPP.

"We encourage Japan to uphold the commitment made by TPP leaders in Honolulu back in 2011, which was the comprehensive elimination of market access barriers like tariffs on traded goods," Bailey says.

Japan is a significant 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 worth of dairy products to Japan, but it is also one of the most protected dairy sectors in the world, with high tariffs on imports," he says.

"If Japan is willing to tackle these tariffs then their joining should be welcomed by both dairy exporters and by Japanese food companies and consumers."

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