Frequently Asked Questions

What is the IPEF Supply Chain Agreement?

Why is New Zealand joining the IPEF Supply Chain Agreement?

  • The IPEF Supply Chains agreement is a first-of-its-kind agreement. It is good that New Zealand is in at the ground floor and can influence the process.
  • Rebuilding production levels, shipping capacity and skilled workforces in the wake of the pandemic is a slow process, as we are seeing here in New Zealand. But having a big group of countries commit to share information, identify stress points and come up with practical solutions is an important step forward.
  • Recent experience shows us that supply chain disruptions impact not only our importers and exporters, but our producers, consumers, businesses and the general public. New Zealand has joined the IPEF Supply Chains Agreement specifically to address supply chain disruption which has contributed directly to the global spike in inflation and cost of living that is hitting New Zealand households.

Compared to other partners, we’ve probably got more challenges than others considering our location – what kind of assurances does this Agreement provide for us?

  • New Zealand negotiators ensured that geography and scale considerations will be explicitly taken into account in the new Agreement.
  • For example, New Zealand and Fiji both have similar experiences of struggling to get ships to arrive during COVID. The time taken for shipping containers to travel across major global shipping routes skyrocketed from under 60 days in 2019 to an all-time high of more than 120 days last year.
  • According to the Customs Brokers and Freight Forwarders Association, the cost of sending a shipping container from New Zealand to the US grew from $2000 to $10,000 at the peak of disruption.
  • The IPEF Supply Chains agreement connects countries like New Zealand and Fiji to the wider region, providing greater certainty for exporters and importers. In the event of a supply chain disruption the agreement’s Crisis Response Network will facilitate expedited communication with regional partners, and quick and coordinated responses.

Trade Pillar FAQs

What is the IPEF trade pillar?

  • Negotiations in the Trade Pillar cover a number of areas and have made substantive progress in chapters including Agriculture, Digital Trade, Inclusivity, Services Domestic Regulation, Good Regulatory Practice, Trade Facilitation, and Technical Assistance and Economic Cooperation.

Why is New Zealand taking part in the trade pillar in the absence of market access?

  • The 14 IPEF partners represent 40 percent of global GDP and 28 percent of global goods and services trade.
  • IPEF is not a free trade agreement. But the IPEF agenda addresses supply chain issues, regulatory issues, non-tariff barriers, digital trade, climate action and due diligence issues that matter to investors.
  • A recent report from Sense Partners says non-tariff barriers are costing New Zealand exporters $12 billion a year. Across the IPEF agenda we are negotiating a trade facilitation chapter, an agriculture chapter and a digital chapter that point to better conditions of access or lower overheads when they are finalised.

Clean Economy FAQs

What is the Clean Economy agreement?

  • The clean economy agreement is a set of cooperative commitments which cover a range of issues critical to transitions to clean economies, including efforts towards energy security and transition, climate resilience and adaptation, greenhouse gas emissions mitigation, and the promotion of sustainable livelihoods and just transition.
  • Investment is an important part of the clean economy agreement. Recognising the need for financing for climate-related infrastructure, technologies, and projects in support of their transitions to clean economies, the agreement will increase the flow of investments into the region, and mobilize and expand access to financing.

Doesn’t New Zealand already have climate agreements?

  • The agreement is fundamentally about collaborative effort at a regional level in response to global warming. This framework will catalyse urgently needed climate action through initiatives that bring together technology, finance and regulatory reform.
  • Engagement on clean energy development and deployment will benefit New Zealand’s access to transformative technologies needed for our Emissions Reduction Plans.

Fair Economy FAQs

What is the fair economy agreement? Isn’t it duplicating existing agreements on anti-corruption and tax?

  • There are a number of other international agreements covering anti-corruption and tax. IPEF Fair Economy uses these as a basis, and will be helpful in ensuring effective implementation of existing international agreements like the UNCAC (United Nations Convention Against Corruption) and the OECD Anti-Bribery Convention.
  • Trade Agreements often include anti-corruption chapters. For example, the CPTPP includes a transparency & anti-corruption chapter.

Why is New Zealand joining the fair economy agreement?

  • Strong economic governance rules are a key base on which to build an Indo-Pacific region that is attractive to investors.
  • The Fair Economy Agreement also includes a capacity building annex to assist countries in implementing these provisions to a high standard.


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