Todd McClay MP: What TPP means for Whanganui

LIVELY DEBATE: New Zealand Trade Minister Todd McClay addresses visiting ministers as part of the formalities ahead of the signing of the Trans Pacific Partnership agreement at SkyCity on February 4.

WHANGANUI is a big winner from the Trans-Pacific Partnership (TPP) and, as an export economy, that's as it should be.

Our economy was built on the hard work of our farmers, and producing products that British people liked to eat. Lamb and butter to the UK is now rivalled by fish, forestry, and wine to China. TPP opens up access to 11 other markets around the Asia Pacific region and represents 800 million consumers.

The TPP is the subject of lively debate - I encourage this discussion. Parliament is currently considering the Treaty in the Foreign Affairs, Defence, and Trade Committee and will consider TPP legislation for all of this year.

Successive governments have sought to level the playing field by negotiating agreements in the WTO and with key partners. This is the right thing for a responsible government to do - after all, our 4.5 million people are not owed a living by the rest of the world. Without freer and fairer trade access many of our important industries would suffer. New Zealand will not become richer and more prosperous through only selling to ourselves.

TPP will be worth an additional $2.7 billion to our economy by 2030, with costs a modest $80 million per year by comparison. In total 95 per cent of our exports will be tariff and quota free into TPP countries.

Behind this opportunity are New Zealand businesses with something to sell to the world. Behind the numbers are real jobs, higher wages, and that gives us more to spend on health, education, and helping those in need.

Consider your friends and family who are working in export-dependent industries in, and around, Whanganui. When AFFCO, Land Meat, Q West, Tasman Tanning, Open Country Dairy, and many others are doing well, the region is doing well. When companies grow, they invest in Whanganui and add more jobs.

The Manawat-Whanganui region accounts for 15 per cent of New Zealand's beef cattle and 18 per cent of the national sheep flock. TPP will see tariffs eliminated for beef into the United States and all other markets except Japan. In Japan, your beef attracts a 38.5 per cent tariff - that's a big disincentive for Japanese housewives to buy Whanganui beef. Under TPP this will be reduced to 9 per cent - the lowest rate Japan has committed to in any previous FTA. All tariffs will be eliminated on sheepmeat as well.

Many concerns have been raised around what TPP will stop us from doing. These deserve open discussion. That's why we're holding 16 roadshows and hui around the country, in addition to the separate parliamentary process. These informative meetings discuss some of the most concerning claims.

TPP won't make prescription medicines more expensive and the Pharmac model, which serves us well has not been changed. We retain the ability to pass laws, and TPP contains a robust clause guaranteeing the government's ability to meet Treaty of Waitangi obligations.

New Zealand was the only country to preserve the rights of its indigenous people in this agreement, as we have in past agreements and will continue to do in future.

The signing of the TPP merely signals the end of the negotiation and the start the parliamentary process. I look forward to visiting Whanganui later in April at the invitation of your MP Chester Borrows to talk more about the importance of trade.

The benefits of TPP are certainly about your region. It's important we prepare for them.