TPPA Dairy Trade provision on the ropes?

Written By: - Date published: 11:43 am, August 15th, 2015 - 12 comments
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tim groser

In the Herald this morning the suggestion is made that the long touted trade benefits from TPPA may not actually be there and that New Zealand is under intense pressure to cave in on access for our dairy products.

From Fran O’Sullivan’s article:

[Tim] Groser is coming under what he labels “intense pressure” to cave in on New Zealand’s demands for better access for dairy exports to three heavily protected markets – Japan, Canada – and to a lesser extent the United States – so negotiators from all 12 TPP nations can quickly nail a deal.

National is trying out a new theme, that the TPPA will spike diversification in our economy and that is a good thing.  Never mind that access for our dairy exports has always been the justification offered for the treaty.

In New Zealand – as was apparent with CEO responses to the 2015 Herald Mood of the Boardroom survey – business concern is strong that moves to diversify the economy should be accelerated to offset the dairy slump and a potential over-reliance on the slowing China market.

Groser reckons the CEOs are off-key: The services sector is a major driver for the New Zealand economy with, for instance, the drop in the exchange rate acting as a drawcard for more tourists. The over-reliance on the China market, which (to a degree) was sparked by the ground-breaking 2008 bilateral free trade agreement, will naturally reduce if the TPP is signed, giving NZ greater access to major markets such as Japan.

Hence the ability for Kiwi exporters to more adequately spread risk through increasing their exports to major markets such as Mexico, Japan, and the United States under more favourable conditions.

While I agree that diversification is vital this is something that Labour has been talking about for years and it has been National that has tried to build a strong economy on the back of cows and rebuilding our second largest city.  Diversification has not occurred at a time that it needed to.

Prepare for the backdown.  We will be sacrificing Pharmac’s effectiveness, intellectual property rights, and opening up ourselves to being sued by corporates whenever we upset them for unknown trade benefits which may not include dairy.

12 comments on “TPPA Dairy Trade provision on the ropes? ”

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  1. dukeofurl 1
    15 August 2015 at 12:02 pm

    Realities are Canada’s election campaign has started for polling in October.

    Australia is almost certain to go early ( before a budget required) and due to complications over single or double dissolution .

    US isnt going to want this getting in the way during election year

    TPPA is dead, they are just creating political wiggle room to say the obituaries

  2. AmaKiwi 2
    15 August 2015 at 12:19 pm

    Rain radar shows skies clearing and no rain for Auckland. (Posted at 12:15 pm).

    I’m marching!

  3. Draco T Bastard 3
    15 August 2015 at 1:00 pm

    National is trying out a new theme, that the TPPA will spike diversification in our economy and that is a good thing.

    Nope. Trade actually does the opposite which is why every developed nation in the world developed under protectionism and why developing countries are now finding it so hard to develop their own economies under the neoliberal paradigm that has been forced upon them via the IMF and the World Bank.

    We will be sacrificing Pharmac’s effectiveness, intellectual property rights, and opening up ourselves to being sued by corporates whenever we upset them for unknown trade benefits which may not include dairy.

    We know exactly what the trade benefits will be – NONE! – And the costs just keep going up.

    • Matthew Whitehead 3.1
      16 August 2015 at 7:44 pm

      The saddest thing is that there is no way a competent trade minister wouldn’t know that trade liberalisation treaties function by specialising economies to maximise production of their comparatively more efficient goods. For New Zealand, that’s largely dairy, which is in a slump and has little movement on trade liberalisation- much likely none in this agreement.

      There is literally no arguement in favour of a TPPA for New Zealand without dairy concessions.

  4. Keith 4
    15 August 2015 at 1:44 pm

    No wonder this crap is so secretive.

    These geniuses we are supposed to trust will sell us down the road and the only individuals who will gain are the inside traders close to the action, namely National Inc!

  5. Incognito 5
    15 August 2015 at 1:54 pm

    The CEOs are indeed off-Key; they’re already asking about the succession plan.

  6. Blue Horseshoe 6
    15 August 2015 at 3:05 pm

    There has been noticeable chatter around the 5eye nations with the talking heads being especially active on the side of ‘pro tppa’

    Watching one in particular last night, it was as if they put the bloke on camera as a way to alert people to the BS

    He stuttered, stammered, looked away from the camera and trotted out the standard generic, empty lines of why the 11 nations need TPPA, He believed it was inevitable

    He was a middle aged white, overweight American

    Could have been satire, certainly if that is was passes for ‘pro-tppa’ then they need more like him on prime time

    Sweaty and desperate, sums it up

  7. Ad 7
    15 August 2015 at 3:40 pm

    Groser is just pathetic.

  8. SPC 8
    15 August 2015 at 5:44 pm

    If there is anything less than full inclusion of dairy, we will be heavily discriminated against.

    We have two options.

    1. Sign provided we are not bound by any new/extra obligation until we get full free trade in dairy. Thus in all other areas get the improved access offered..

    2. With Oz we join a China – ASEAN – Russia – India free trade zone.

  9. Neil 9
    15 August 2015 at 11:01 pm

    Grosser will cave in because his boss Key has be instructed by the American’s to do this deal regardless whether its good for NZ or not.

    • AmaKiwi 9.1
      16 August 2015 at 1:24 am

      The USA is offering us the opportunity to participate in their next war (location not yet revealed).

      How can we refuse an offer that good?

  10. Smilin 10
    17 August 2015 at 11:52 am

    Up to 60% of our exports are related to what is directly produced and comes from nowhere else but here ,NZ
    Yet the 7.whateva % financial sector controls it all, SOMETHING WRONG HERE
    BANKSTERS leading the recovery ?they are all in soaring profits for who I dont see it here