Canada has formally joined the TPP negotiations, after the completion of domestic legal procedures by all nine current TPP members.
New Zealand and Canada have a longstanding close and friendly relationship. We have a similar world view and we tend to identify with each other’s interests, concerns and values. There is, however, potential to grow our trade and economic relationship.
Canada is a significant market of interest for New Zealand. Last year Canada was New Zealand’s 19th largest goods trading partner, with total trade worth over NZ$1.2 billion. However, Canada’s true ranking is higher due to the number of New Zealand exports that enter the Canadian market via the United States.
New Zealand’s exports consist of mainly beef, sheep meat and wine, but Canada is also a high value added market for other Kiwi exports, including specialised manufacturing, ICT and other food products, as well as being a growing market for investment opportunities. Canada also provides a strategic stepping-stone for New Zealand companies into the North American market.
Canadian companies already have business interests and investments in New Zealand across a number of sectors including agriculture and processed foods, defence and security, technology, and petroleum. Canada’s top exports to New Zealand include fertilizer and jet engines.
New Zealand does not have a free trade agreement with Canada. The TPP will not only provide a platform for deepening our trade and economic engagement based on a common platform, but will provide an opportunity to address some long-standing barriers to trade between our two countries, particularly in the agriculture sector. For example, our dairy exports can face high tariffs of up to 299 percent, and our beef exports are subject to quotas.
Canada is also a great place for Kiwi companies to do business. It is currently the world’s 10th largest economy with a GDP of C$1.737 trillion in 2011. Having weathered current economic global stress remarkably well, Canada is actively positioning for strong future growth. TPP will provide a new avenue for New Zealand businesses to take advantage of the commercial opportunities on offer in Canada.