Jacinda Ardern at Apec
What is the Apec Summit and why is it important? What is TPP, now CPTPP? And is it important to our business community?
Over this past week there has been a lot of media coverage about the Apec Leaders' Summit in Vietnam.
What is interesting was seeing the new faces representing New Zealand on the international trade scene, and the obvious change in the profile of two new leaders at the summit, namely: our Prime Minister Jacinda Ardern, aged 37, and the Prime Minister for Canada, Justin Trudeau, aged 45.
What struck me were the higher energy levels these two new world leaders emanated with ease.
It highlighted fresh new perspectives are always good because they create a momentum of change.
Obviously, we are in a "wait and see" period with respect to the political and business outcomes resulting from these changes - "time will tell".
Back to Apec. The Asia-Pacific Economic Cooperation (Apec) is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific.
The primary purpose is to facilitate economic growth and prosperity in the region, with the vision of creating a seamless regional economy.
There are 21 economies included in the Apec group with major powerhouse countries including Canada, China, Russia and the United States.
Suffice to say, there is a lot of positioning by these powerhouse economies, who are flexing their political and economic prowess.
What is TPP, now CPTPP? The Trans-Pacific Partnership (TPP) is a multinational trade agreement which 12 countries bordering the Pacific Ocean signed up to in February 2016, representing roughly 40 per cent of the world's economic output.
The ethos was aimed to deepen economic ties between these 12 nations, reducing tariffs and fostering trade to boost growth. It also hoped to foster closer relationships on economic policies and regulation.
For the TPP to work, all 12 countries needed to ratify the agreement, before it came into effect. As we know, TPP was not ratified and the United States is no longer part of it.
It is fair to say TPP is dividing the country and one of the biggest issues, which I am simplifying, relates to providing a guarantee to multinational corporations that their freedom of action and their quest for profits is secure, ie, they are not bound by the countries' laws and have an ability to sue the government.
TPP has now become CPTPP (Comprehensive and Progressive Agreement for the Trans-Pacific Partnership). This has opened dialogue to influence the changes required to ensure multinational corporations abide by the laws of the countries they are working in, and I support this change.
So, is TPP, now CPTPP, important to our business community?
Yes - because as business owners any opportunity to sell products into new countries, facilitated through mutually beneficial frameworks, creates economic benefits for all to enjoy.
Allison Lawton is the chief executive for the Rotorua Chamber of Commerce.