NZUS Council welcomes Mexico to TPP negotiations

The announcement that Mexico is joining the Trans Pacific Partnership (TPP) negotiations is another step towards achieving precisely what was first envisioned – a free trade area of Asia and the Pacific, said the NZUS Council.

“This is good news for businesses which need to operate more effectively and seamlessly in the region,” said NZUS Council Executive Director Stephen Jacobi.

“Mexico is a steadily growing market for our products, with enormous potential for New Zealand exporters. A successful outcome to the TPP negotiations will also allow New Zealand to leverage the potential in the education and research relationships we have with Mexico.

Mexico’s entry will make New Zealand's competitive position in Mexico the same as the NAFTA partners, USA and Canada.

New Zealand exports to Mexico in 2011 were worth $414.8 million and it was our 25th largest export market. The top exports were dairy and meat. Dairy products accounted for 62 percent of New Zealand’s exports to Mexico.

Mr Jacobi said the NZUS Council is pleased to note that Mexico is joining the TPP on the same terms as those already taking part in the negotiations. This means these economies share the aspiration for an ambitious and comprehensive 21st century agreement.

“If the momentum started by Mexico leads to a Free Trade Area of Asia and the Pacific, we would see New Zealand lift its exports by 8.5 per cent above 2025 baseline levels and welfare gains to New Zealand lift by 1.35 per cent of GDP.

“We look forward to Japan and Canada joining the negotiations once both economies are confident they can meet the high ambition of TPP and consultations are complete,” said Mr Jacobi.


About The Trans Pacific Partnership
TPP is an existing trade agreement between Brunei, Chile, New Zealand and Singapore which Australia, Malaysia, Peru, the United States and Viet Nam wish to join. Eleven rounds of negotiations have been held involving the nine partners. The economies of APEC account for over 70 per cent of New Zealand’s total merchandise trade. Trade with APEC economies has been growing at an average of 4.5 per cent per annum over the last 20 years. The TPP could add around $2.1 billion to the New Zealand economy by 2025 according to research undertaken by the East-West Center, in Honolulu.

About the NZUS Council – www.nzuscouncil.com
The NZ US Council is a non-partisan body funded by both business and the Government to promote New Zealand’s broader relationship with the US.  Two-way trade with the US is valued at over $8 billion and the US is a leading source of investment, innovation and business ideas. The NZ US Council is actively engaged in co-ordinating business and government efforts towards concluding a comprehensive, high quality result to the TPP negotiations.