Tuesday, 12 November 2019 13:55

Important trade milestone

Written by  Pam Tipa
Stephen Jacobi.  Stephen Jacobi. 

Agreement by 15 participants in the Regional Comprehensive Economic Partnership (RCEP) trade negotiations marks an important milestone.

So says New Zealand International Business Forum (NZIBF) executive director Stephen Jacobi. 

The text has been agreed by all but India which reportedly has sought to have New Zealand dairy excluded and is also concerned about a flood of cheap goods from China.

Jacobi says business leaders are naturally disappointed that India is not yet ready to sign on and there is also more work to do on the market access front to secure the final deal.

“From the outset, NZIBF has viewed the RCEP as a means to provide important impetus to broader trade liberalisation efforts, even though New Zealand has FTAs with most of the participants,” said Jacobi. 

“The inclusion of India provided an opportunity to remove trade barriers and expand trade and investment with an important partner with whom we do not have an FTA. The strategic and commercial benefits of RCEP will be increased should India ultimately join, but the agreement as it stands is of significance in a world where such agreements are becoming rare.

“Without knowing the final market access package it is difficult to judge the overall value of the deal, but we remain hopeful that, along with improved trade rules, the RCEP will provide for new, commercially meaningful access on key products of export interest, including to India.”

The RCEP negotiations were launched in late 2012 comprising 16 countries including the members of ASEAN, Australia, China, India, Japan, Korea and New Zealand. Once fully implemented, it will be the world’s largest trading bloc representing 39% of global GDP, a significant share of global trade and nearly half the world’s population. 

Jacobi also says New Zealand’s trade relationship with China stands to be further enhanced by the upgrade of the Free Trade Agreement (FTA) announced last week.

“The FTA has been a stand-out success in boosting trade and investment between the two countries. Inevitably further gains are harder to achieve, but as this upgrade shows, the FTA remains a vital framework for continuing to expand the relationship, particularly at a time when protectionism is on the rise around the world.”

More like this

Free trade area could help post-Covid recovery

Moves to bring all free trade deals in Asia Pacific into one ‘free trade area’ could help countries like New Zealand bounce back from Covid, according to trade expert Stephen Jacobi.

Countries race to join CPTPP

Chinese Taipei is the latest of three countries seeking to join the CPTPP – the Comprehensive and Progressive Agreement for Trans Pacific Partnership.

Featured

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

Editorial: Passage to India

OPINION: Even before the National-led coalition came into power, India was very much at the fore of its trade agenda.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.

» Latest Print Issues Online

Milking It

Papal visit

OPINION: European farmers are going to extreme lengths to have their message heard.

Thai egg tarts

OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter