The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will eliminate and reduce tariff and non-tariff barriers on New Zealand's goods exports to ten key markets.

New market access for New Zealand exporters

The 11 members of the CPTPP constitute approximately 13.5% of world GDP (approximately US$10 trillion) and are the destination for approximately 31% of New Zealand’s goods exports (worth NZ$16.3 billion for the year ending Dec 2017).

The CPTPP will provide New Zealand exporters with preferential access, into Japan, the world’s third largest economy for the first time.

The CPTPP will also be New Zealand’s first Free Trade Agreement (FTA) with peru, Canada and Mexico (the latter two are respectively the world’s 11th and 14th-largest economies).

In some cases this will restore a level playing field for our exporters in markets where competitors have enjoyed tariff preferences.

In some cases this will restore a level playing field for our exporters in markets where competitors have enjoyed tariff preferences.

Removing tariffs over time

Tariffs will be eliminated on 92.2% of New Zealand’s exports to these new FTA partners once CPTPP is fully phased in removing tariffs of NZ$222 million per year. Over 40% of the tariff savings will be achieved when the CPTPP enters into force.

CPTPP will also eliminate tariffs on New Zealand exports to Malaysia and Viet Nam that are not already subject to tariff elimination in previous FTAs, such as wine, as well as liquid milk to Malaysia and exports such as fish and seafood to Viet Nam.

In addition to eliminating tariffs, the CPTPP will help grow the value of trade and diversify New Zealand's trading relationships. Many of the benefits from tariff liberalisation are likely to go to regional New Zealand where primary sector farmers and growers are based.

The new trading market opportunities under CPTPP will provide significant potential to lift the export performance and productivity of the Māori asset base, worth around NZ$50 billion, of which a significant portion is oriented towards New Zealand’s export economy.

Goods outcomes by sector

Tariff liberalisation in the region will create new opportunities for New Zealand exporters across the CPTPP region. This document sets out the tariff savings for key sectors based on current trade, although New Zealand will also benefit from increased trade and diversification of trading relationships.

For particular products, you can look up tariffs under CPTPP and compare them to other free trade agreements at tariff-finder.fta.govt.nz (external link).

Meat

New Zealand exports to CPTPP Parties for 2017: NZ$1.1 billion. Total estimated tariff reductions per year once fully implemented are NZ$57 million. Key benefits for the beef and sheepmeat sector include:

Beef

Japan, New Zealand’s fifth-largest beef export market, will reduce its 38.5% tariff on beef to 9% over 16 years.

This is the lowest tariff on beef Japan has ever agreed to in a trade agreement and will ensure that New Zealand is on a level playing field with other CPTPP exporters with existing FTAs.

There will be a volume-based transitional safeguard, which will apply equally to all CPTPP exporters. The World Trade Organization safeguard currently being applied against New Zealand frozen beef exports will not apply to New Zealand trade once CPTPP is in force. Canada, New Zealand’s fourth-largest beef export market, will eliminate all tariffs and quotas on New Zealand beef over six years, allowing unrestricted duty free access.

Mexico and Peru will eliminate beef tariffs within 10 and 11 years respectively.

Sheepmeat 

Nearly all tariffs on sheepmeat would be eliminated upon entry into force, including lockin in preferential rates to Canada (New Zealand’s 7th-largest sheepmeat market).

All tariffs will be eliminated in eight years, with nearly all tariffs eliminated at entry into force.  Existing zero duty access will be locked in.

Offal and processed meat

Japan's tariffs on offal and processed meats, will be eliminated over 11–13 years with a 50% reduction at entry into force. Tariffs on processed meats will be eliminated at entry into force in Canada for lines of trade interest.

Dairy

New Zealand exports to CPTPP Parties for the year ending June 2017: NZ$3.3 billion. Total estimated tariff reductions per year once fully implemented are NZ$86 million.

CPTPP will provide New Zealand improved access into the CPTPP region where current access is highly restricted by high tariffs and small quotas. 

Key products and markets that will see tariff elimination once CPTPP is fully implemented include:

  • A number of protein products have tariffs eliminated in Japan and Canada, most at entry into force.
  • Tariffs on most cheese types will be eliminated in Japan over 16 years.
  • Tariffs on infant formula will be eliminated in Canada and Mexico.

Reflecting sensitivities among several of the Parties, tariffs will not be completely eliminated on all dairy products. Instead, quota access is provided.

Tariff quotas

New Zealand will have access to tariff quotas for a number of key products in Japan, Mexico and Canada. These quotas will provide New Zealand with new dairy market access to these important markets.

Malaysia will eliminate liquid milk tariffs over 16 years. During the tariff elimination period, Malaysia will provide quota access for 2 million litres of liquid milk to all CPTPP Parties, with a zero in-quota tariff.

This will be in addition to the quota volumes already provided for under the Australia-ASEAN-New Zealand FTA (AANZFTA) and the Malaysia-New Zealand FTA (MNZFTA).

Horticulture

New Zealand exports to CPTPP Parties for the year ending June 2017: NZ$1,180 million. Total estimated tariff reductions per year once fully implemented are NZ$33 million.

Key benefits for the horticulture sector include:

  • New Zealand will benefit from the elimination of tariffs on all of our fruit and vegetable exports across the CPTPP region, including in Japan (New Zealand’s second-largest export market).
  • This includes immediate elimination of tariffs in Japan for kiwifruit and buttercup squash, New Zealand's highest-traded dutiable horticultural products.

Tariffs on key products will be eliminated as follows:

  • Kiwifruit: All tariffs for kiwifruit would be eliminated at entry into force and existing duty free access will be locked in. This includes duty free access to Japan – New Zealand’s largest kiwifruit market – representing tariff-related savings of more than NZ$26 million.
  • Apples: All tariffs on apples would be eliminated within 11 years. This would level the playing field with Australian apple exporters, who already enjoy preferential access into Japan.
  • Avocados: Japan will eliminate tariffs at entry into force.
  • Squash and capsicum: Japan will eliminate tariffs at entry into force.
  • Carrot and other vegetable juices: Japan will eliminate tariffs over six years
  • Onions: Tariffs will be eliminated within six years in Japan

Wine

New Zealand exports to CPTPP Parties for 2017: NZ$523 million. Total estimated tariff reductions per year once fully implemented are NZ$4.5 million.

Key benefits for the wine sector include:

  • New Zealand wine exporters will benefit from the removal of all tariffs on wine, opening up new opportunities in several of New Zealand’s most important wine export markets. This includes Malaysia and Viet Nam, which had not eliminated wine tariffs in their previous FTAs with New Zealand.
  • New Zealand will gain tariff-free access for all wine into Canada (New Zealand’s fourth-largest wine export destination) at entry into force. In addition, Peru will eliminate tariffs for bottled still wine and Mexico for sparkling wine at entry into force.
  • Mexico will eliminate its wine tariffs over three years for New Zealand wine exports, Peru over six years, Japan (New Zealand’s seventh largest export destination country) over eight years (with a 33% cut at entry into force), Viet Nam over 11 years, and Malaysia over 16 years.

Forestry

New Zealand exports to CPTPP Parties for 2017: NZ$1.4 billion.Total estimated tariff reductions per year once fully implemented are NZ$9.5 million.

Key benefits for the forestry sector include:

  • All tariffs on New Zealand forestry and forestry products will be eliminated as part of CPTPP, including in Japan (New Zealand’s fourth-largest export market), and Viet Nam (New Zealand’s 11th-largest market).
  • Tariffs will be eliminated at entry into force in Canada.
  • Tariffs eliminated on all forestry products in Viet Nam, including some paper and paperboard products which were not subject to tariff elimination in AANZFTA.

Fish and seafood

New Zealand exports to CPTPP Parties for 2017: NZ$352 million. Total estimated tariff reductions per year once fully implemented are NZ$9.5 million.

Key benefits for the fish and seafood sector include:

  • All tariffs will be eliminated on fish and seafood product under CPTPP, with the majority of duty savings on entry into force of the agreement.
  • Japan: All of New Zealand’s fish and fish products imported into Japan currently face tariffs. Ninety-nine percent of these tariffs would be eliminated within 11 years, and the remainder within 16 years
  • Canada: All existing fisheries tariffs in Canada will be eliminated at entry into force.
  • Mexico: At entry into force, tariffs will be eliminated for mussels, which account for 99% of the tariffs levied on New Zealand fish and seafood trade with Mexico.
  • Peru: At entry into force, all existing tariffs on fish and seafood will be eliminated, giving New Zealand complete duty-free market access.
  • Viet Nam: All tariffs will be removed within four years, including a number of lines not eliminated in AANZFTA.

Wool, leather and textiles

New Zealand exports to CPTPP Parties for 2017: NZ$456 million. Total estimated tariff reductions per year once fully implemented are NZ$1.0 million.

Key benefits for these sectors include:

  • All tariffs will be eliminated on wool, leather and textiles products under CPTPP.  All tariffs on wool products for Japan and Canada will be eliminated at entry into force.
  • Tariffs on hides and skins will be eliminated at entry into force for Canada and Peru.  Tariffs for Mexico will be eliminated within 10 years, and for Japan in 11 years.

Industrial goods

New Zealand exports to CPTPP Parties for 2017: NZ$5.9 billion. Total estimated tariff reductions per year once fully implemented are NZ$3.0 million.

Key benefits for the industrial goods sector includes:

  • CPTPP will eliminate all tariffs levied on the import of New Zealand manufactured goods in the CPTPP region. Over 90% of New Zealand’s manufactured goods trade with these new FTA partners will be duty free once CPTPP enters into force.
  • All remaining tariffs on New Zealand’s manufacturing goods exports to Viet Nam not removed in New Zealand’s existing FTA with Viet Nam (AANZFTA) will also be eliminated.

Other agricultural goods

New Zealand exports to CPTPP Parties for 2017: NZ$1.7 billion. Total estimated tariff reductions per year once fully implemented are NZ$14.1 million. Tariffs for a number of other important agricultural products are also eliminated. 

Key benefits for the other agricultural goods sector includes:

  • in Japan the elimination of tariffs at entry into force on soups and broths, sphagnum moss and cooking sauces.  Tariffs on honey are eliminated over 8 years.
  • Tariffs are eliminated on entry into force in Canada on dog or cat food and certain spirits. In Mexico tariffs are eliminated at entry into force on deer meat and wool grease.
  • In Viet Nam and Malaysia there is tariff elimination for products of trade interest not eliminated in existing FTAs. For Viet Nam this includes beer and spirits while for Malaysia this includes spirits.