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HortNZ supports TPPA

21 April 2016

The pair voiced their support of the TPPA, particularly given the tariffs to be eliminated that will level the field for New Zealand horticultural exports. Chapman said that HortNZ has written articles, engaged in discussion with growers, and met with industry leaders to develop its view on the TPPA. 

HortNZ represents 5,500 commercial fruit and vegetable growers – an industry with a $5 billion turnover and the country's fourth largest export industry. Chapman noted that the sector exports just over half of what is grown, so trade agreements are crucial to the growth of this industry. 

He said that HortNZ supports the TPPA for the following reasons:

  • Tariff eliminations and reductions worth $34 million;
  • Improved market access to the TPPA signatories – one of the most difficult tasks is getting access into new markets and meeting the requirements for import;
  • Levelling the competition with the TPPA signatories because the TPPA will remove trade and market access barriers. Chapman believes that this will result in the more efficient producers getting the most benefit. He said that NZ horticulture is an efficient and sustainable producer. “This will help counter-balance the cost of shipping its produce and its higher production costs.”

Chapman noted that he had recently read the US-based Peterson Institute for International Economics assessment of the benefit from TPPA for NZ and the other signatories. The Peterson Institute assesses that the TPPA will increase annual real incomes in New Zealand by USD $6 billion, which is 2.2% of our gross domestic product (GDP). The TPPA will increase NZ’s annual exports by USD $9 billion or 10.2% of its exports over baseline projections by 2030. He suggested that this is because the TPPA will eliminate 75% of tariffs when it comes into force and 99% of tariffs when it is fully in force. 

Chapman said that HortNZ continues to engage with officials and other sectors on trade agreements and welcomes HortNZ’s members’ views or questions on TPPA.