Forestry and tourism are just two of the big winners once the Trans-Pacific Partnership (TPP) comes into force according to trade minister Todd McClay.
Speaking at the Rotorua Chamber of Commerce today, Mr McClay said regional New Zealand will reap the benefits of TPP with economic growth and jobs.
"New Zealand exported $1.5 billion in forestry products to TPP countries in 2015, 32 per cent of total forestry product exports. Once TPP is fully implemented, all tariffs will be eliminated across the 12 Parties, saving the forestry sector $11 million every year in tariffs."
"And that is mostly on value-added timber," said Mr McClay.
In Canada, all tariffs will disappear immediately once TPP enters into force. In the United States, 98 per cent of tariffs paid will be eliminated immediately and the remainder over 8 years, and in Vietnam, paper and paperboard products will become tariff free in four years or less - something not previously achieved in the ASEAN-Australia-New Zealand FTA (AANZFTA).
"Japan is New Zealand's fourth-largest export market for forestry products. With TPP, almost 80 per cent of tariffs will be eliminated on entry into force. This includes all duties on fibreboard, nearly all builders' joinery, and sawn wood. Particle board and plywood will see a 50 per cent reduction in tariffs on entry into force and total elimination of tariffs in 11 and 16 years respectively," said Mr McClay.
"Tourism is another winner. It is already booming here in Rotorua and elsewhere around New Zealand but TPP can only increase those numbers."
"The TPP sends an important message to 800 million people in 12 TPP countries that New Zealand is open for tourism and open for business. The Agreement will improve market access for New Zealand travel companies and tour operators, particularly those seeking to operate in Canada, Japan, Mexico, Peru, and the United States.
"It will also improve the ability of business people to secure visas in a timely and transparent way, which will encourage business and international trade."
"The regions of New Zealand should be celebrating TPP. As I travel around New Zealand I will be celebrating their gains under this agreement with them."