New Zealand Embassy Washington, United States of America
Trans Pacific Partnership
The Trans Pacific Partnership is the first multi-party free trade agreement (FTA) linking Asia, the Pacific and the Americas. It was negotiated with the objective of providing a vehicle for high-quality economic integration in the Asia-Pacific region.
The agreement aims to deepen economic ties between its members by opening up trade in goods and services, boosting investment flows, and promoting closer links across a range of economic policy and regulatory issues.
Regional building block
Expansion of the Trans-Pacific Partnership offers a potential pathway to the Asia-Pacific Economic Cooperation (APEC) forum goal of free and open trade and investment in the Asia-Pacific region. It offers the prospect of high quality trade liberalisation in a relatively short timeframe. As an agreement that is both comprehensive (covering all the main components of trade) and of a high standard, the agreement is fully consistent with the World Trade Organisation (WTO) benchmark requiring that FTAs must cover “substantially all trade”.
Strategic and commercial importance
The Asia-Pacific region is a key driver of global economic growth. Roughly 50 percent of international trade and more than 70 percent of New Zealand's trade and investment occurs within the region.
With a number of regional processes under way in the Asia-Pacific region designed to further remove barriers to trade and investment, it is important that New Zealand remain a full participant in the regional integration agenda. Having new participants on board will help to generate momentum in moves towards achieving the goal of greater economic integration in the region.
New Zealand's interests
Alongside these long-term objectives, New Zealand has export interests in the United States, particularly in the agriculture and related food sectors. New Zealand also has an interest in securing greater access to the United States government procurement market, enhanced access for services exporters and an increase in United States investment and tourism in New Zealand. A Trans-Pacific agreement will also open up opportunities for trade in goods and services and investment in Peru, the only other negotiating partner with which New Zealand does not have an existing FTA besides the United States. The agreement will contribute to an increased commercial profile for New Zealand businesses in each of the member countries.