19 June 2012

MEDIA RELEASE

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.
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