The United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is great news for the region and New Zealand, Prime Minister, Chris Hipkins said today.
Mr Hipkins said trade was not only a priority for the government, but essential to New Zealand’s economic recovery, and improving the lives and livelihoods of all residents.
“Worth $60 billion in two-way trade with partner economies, this agreement is providing significant benefits and opportunities for our exporters. By welcoming the UK into the CPTPP family we will only see those economic opportunities for growth and recovery further increase,” the Prime Minister said.
With accession of the UK complete, the CPTPP now covers more than 500 million people globally and represents more than 15% of the worlds GDP.
“The United Kingdom is a G7 member and the world’s sixth-largest economy. It is also committed to high standard, rules-based trade, making it a perfect fit for CPTPP,” said Trade Minister, Damien O’Connor.
“Having the UK inside the tent will strengthen the rules-based trading system in our region, benefiting New Zealand exporters, providing greater certainty, and enhancing regional supply chains for trade.
“It is one of our largest trading blocs with more than half a million New Zealanders employed in firms that export to our CPTPP partners, and continuing to create new jobs.”
The Agreement delivered tariff savings of more than $330 million on New Zealand exports in its first two years alone – with many more millions of benefits flowing since then, the Minister said.
“New Zealand has always supported expanding the bloc and bringing in economies willing and able to meet its high standards. New partners like the United Kingdom increase the value of this Agreement and demonstrates the ongoing importance of CPTPP as a critical piece of global trade architecture,” Mr O’Connor said.
Minister O’Connor is chairing the CPTPP Commission meeting that is being attended by 11 Trade Ministers and delegations from CPTPP economies.
“The addition of the UK demonstrates our collective commitment to promoting free trade, open and competitive markets, the rules-based trading system and economic integration in our region and beyond,” he said.
“The United Kingdom has come through the robust accession process and the overall quality of its commitments has set a good precedent for future economies that wish to join.”
The UK’s accession to CPTPP complements the outcomes of the NZ-UK FTA, which is now in force with 99.5% of New Zealand’s current goods exports entering the UK market duty free.
More information is available at www.mfat.govt.nz/cptpp.