“The Regional Comprehensive Economic Partnership (RCEP) that was signed virtually yesterday is a wake up call for the
cheerleaders of hyperglobalisation: countries and their peoples have become wary and weary of these mega-free trade
deals ”, says University of Auckland law professor Jane Kelsey, who closely followed the negotiations and attended many
negotiating rounds over the past eight years.
What was originally slated as China’s antidote to the Trans-Pacific Partnership Agreement (TPPA) leaves out some of the
most controversial rules.
There is no chapter on state-owned enterprises or government procurement, no right for foreign investors to enforce
special rights through investor-state dispute settlement (ISDS), some intellectual property rights for Big Pharma are
absent or diluted, the electronic commerce chapter left out some rules and is not enforceable.
Moreover, RCEP delivers virtually nothing in traditional market access terms among 15 countries that have a vast web of
similar agreements among themselves.
“The big deal, including for New Zealand, was the inclusion of India”, says Professor Kelsey.
“But India walked away last year because the price was just too high. The economy and workforce would have been swamped
by Chinese imports and Australian and New Zealand market access demands would have devastated India’s 100 million dairy
farmers.”.
Professor Kelsey notes that the usually ebullient Ministry of Foreign Affairs and Trade (MFAT) is even downplaying the
deal, admitting that it failed to achieve its objectives.
“It’s time for New Zealand to revisit the failed hyperglobalisation model of the past four decades, especially after
Covid-19 has exposed our vulnerability to deeply integrated supply chains we can’t control and ‘services exports’ that
depend on international travel.”
“Even the Labour’s government’s Trade for All Advisory Board called for a rethink of the current approach” Professor
Kelsey observed.
“Hopefully Minister Mahuta will bring a fresh eye to these challenges and help move New Zealand to a progressive trade
agenda fit for the challenges of the 21st century.”