Market accessAPECExport controlsNZ and the WTOOECDTrade AgreementsAnti CounterfeitingAseanAustraliaChinaGulf Cooperation CouncilHong KongKoreaMalaysiaSingaporeThailandTrans PacificTrade RelationshipsTrade and economic analysisTrade lawTrade scholarships
Trans-Pacific Strategic Economic Partnership Agreement
between Brunei Darussalam, Chile, New Zealand and Singapore
The Trans-Pacific Strategic Economic Partnership Agreement (the Trans-Pacific Agreement, formerly known as P4) was signed by New Zealand, Chile and Singapore on 18 July 2005 and by Brunei on 2 August 2005, following the conclusion of negotiations in June 2005. A binding Environment Cooperation Agreement and a binding Labour Cooperation Memorandum of Understanding, which had been negotiated as part of the Trans-Pacific package, were signed concurrently.
On 22 September 2008, comprehensive negotiations for the United States to join the Trans-Pacific Agreement were announced. Australia, Peru and Viet Nam also intend to participate in negotiations. The first round of negotiations was scheduled to take place in March 2009, but has been postponed to allow the US Administration time to conduct a general review of US trade policy.
The original Trans-Pacific Agreement negotiations were launched by Chile, New Zealand and Singapore at the APEC leaders’ summit in 2002. After attending a number of rounds as an observer, Brunei joined the Trans-Pacific Agreement as a “founding member”. It was given some flexibility to implement its commitments in light of its late joining. For example, it was given more time to negotiate its services and government procurement schedules. Negotiations on those schedules took place in 2008, and Brunei completed its ratification process in July 2009.
Following the passage of implementing legislation and regulations in March and April 2006, the Trans-Pacific Agreement entered into force on 1 May 2006 for New Zealand and Singapore. Brunei deposited an instrument of provisional application on 12 May – the Trans-Pacific Agreement provisionally applied to Brunei from 12 June 2006 and came into full force in July 2009. The Agreement entered into force for Chile on 8 November 2006.
On entry into force, duties were eliminated on 90% of New Zealand’s exports to Chile, (representing an immediate duty saving of NZ$1.9million) and on 92% of New Zealand’s exports to Brunei. All of Chile’s remaining tariffs on New Zealand’s exports will be phased out by 2017 and to Brunei by 2015. In return New Zealand will phase out all its tariffs by 2015. Under the existing New Zealand-Singapore Closer Economic Partnership (NZSCEP), tariffs between New Zealand and Singapore are already zero.
The NZSCEP (which entered into force on 1 January 2001) will continue to remain in force. In an arrangement between New Zealand and Singapore, exporters from both countries will be able to choose the better of the treatment afforded under either the NZSCEP or the Trans-Pacific Agreement. This is designed to ensure that no trader is left worse off.
One of the objectives of the Trans-Pacific Agreement was to create a trade agreement that could be seen as a model within the Asia-Pacific region and could potentially attract new members. The agreement is open to accession “on terms to be agreed among the parties, by any APEC economy or other state”.
As part of the original outcome of negotiations in 2005 it was agreed to begin negotiations on financial services and investment within two years of entry into force. Those negotiations began in March 2008, with the United States participating while it considered whether to enter into negotiations to join the Trans-Pacific Agreement on a comprehensive basis.
