New Zealand Government Declares Trans-Pacific Trade Agreement to Take Effect by End of 2018

A historic 11-member trade deal to remove barriers in some of Asia's most dynamic economies will come into effect at the end of December, the New Zealand government said on Wednesday.

The agreement would go forward after Australia informed New Zealand that it had become the sixth country to ratify it formally, alongside Canada, Japan, Mexico and the United States. and Singapore.

"This triggers the 60-day countdown to the entry into force of the Agreement and the first round of tariff cuts," said New Zealand's Minister for Trade and Export Growth (David Parker). His country is responsible for official tasks such as the receipt and dissemination of notifications made by members of the Pact.

The original 12-member agreement was put on hold at the beginning of last year when President Donald Trump pulled out of the deal to prioritize job protection in the United States.

The remaining 11 countries, led by Japan, finalized a revised trade pact in January called the Global and Progressive Partnership for Trans-Pacific Partnership (TPPP).

Representatives from Japan and other member countries have touted the success of this agreement as an antidote to the growing protectionism of the United States and in the hope that Washington will eventually join.

Australia said the agreement would boost agricultural exports worth more than A $ 52 billion ($ 36.91 billion) this year, despite a paralyzing drought over most of the east coast of the country.

"This will give Australian grain producers a good reason to smile, at a time when drought has upset many people, improving market access and grain prices, while seasonal conditions are more favorable" said Luke Mathews, commercial and economic director at the body of the industry, GrainGrowers Australia.

The agreement will reduce tariffs in economies representing together more than 13% of global GDP, a total of $ 10 trillion. With the United States, that would have been 40%.

The five member countries that still have to ratify the agreement are Brunei, Chile, Malaysia, Peru and Vietnam.