SYDNEY (Reuters) – A landmark 11-country trade agreement, a revised version of the Trans-Pacific Partnership (TPP), came into effect on Sunday when the New Zealand Trade Minister welcomed his options for exporters.
FILE PHOTO – Delegates attend the opening session of the Trans Pacific Partnership meeting in Sydney (Australia) on August 28, 2017. REUTERS / Jason Reed
The deal that lowers tariffs across much of the Asia-Pacific region The region does not include the United States after Washington withdrew from the TPP negotiations in 2017.
"The Comprehensive and Progressive Transactional Partnership Agreement (CPTPP) provides New Zealand with trade agreements with three major economies for the first time: Japan, Canada and Mexico," said Trade Minister David Parker in a statement.
"The CPTPP has the potential to deliver estimated customs savings of US $ 222 million (US $ 149.01 million) annually to New Zealand exporters once it is in force."
The pact came on Sunday in force for Australia, New Zealand, Canada, Japan, Mexico and Singapore, followed by Vietnam on January 14, the Australian State Department said on its website.
Brunei, Chile, Malaysia and Peru will begin 60 days after the completion of the ratification process.
The investment bank HSBC said in a press release that in the first six countries on Sunday in the first round of cuts, 90 percent of tariffs on goods were canceled.
Australia is looking forward to favorable conditions for its agricultural exports, including wheat, and is causing American competitors to warn that they need help to compete.
"Japan is generally a market in which we want to maintain our strong 53 percent market share, but today we are facing a collapse," US Wheat Associates President Vince Peterson said in Washington on 10 December public hearing.
"As of April 1, 2019, US wheat will face 40 cents a bushel or $ 14 per tonne in resale prices to Australia and Canada," Peterson said in a transcript of the US Wheat Associates website.
The deal reduces tariffs in economies, which together account for more than 13 percent of global gross domestic product (GDP) – a total of $ 10 trillion. If the United States were included, that would have been 40 percent.
US. President Donald Trump said in April that he would consider joining the trade agreement if the conditions for the United States were more favorable.
(1 USD = 1.4899 New Zealand Dollars)
Reporting by Alison Bevege; Editing by Daniel Wallis