Trans-Pacific Partnership. Free trade agreements.

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Presentation transcript:

Trans-Pacific Partnership

Free trade agreements

Primary sector exports

Trans-Pacific Partnership

Key service sector outcomes Global supply chain related services: Improved access for transportation, warehousing, distribution and retail services Education services: Improved access to the private education service markets of Canada, Japan, Mexico, Peru and the United States Accountancy services: Greater access to provide services in TPP countries, with limited exceptions Other professional services: Improved commitments in sectors such as engineering, architecture, management consultancy and foreign legal services Agriculture services: New commitments to support commercial opportunities that exist in the region for agriculture, hunting and forestry service suppliers Environmental services: Improved commitments for environmental services, particularly in the United States Hospitality and tourism services: Improved access for travel agencies and tour operators in the TPP region

Trans-Pacific Partnership TPP will add an estimated $2.7 billion To New Zealand’s GDP by 2030

New investment commitments with Canada, Japan, Mexico, Peru and the United States Enhanced commitments in Brunei, Chile, Malaysia, Singapore, and Viet Nam Threshold under the Overseas Investment Act increases from $100 million to $200 million for TPP investors No changes to the way New Zealand approves investments relating to sensitive land or fisheries quotas New Zealand also retains the flexibility to make the approval criteria under the Overseas Investment Act more or less restrictive Key Investment Outcomes

Applies only to TPP’s investment provisions and, in limited circumstances, to investment agreements and investment authorisations Will help protect New Zealand investors abroad while safeguarding the Government’s ability to regulate for legitimate public policy purposes Includes an exception that allows the Government to rule out any ISDS challenges of tobacco control measures Investor-State Dispute Settlement (ISDS)

TPP sets rules to ensure commercially focussed SOEs and designated monopolies operate on a level playing field with private competitors Provisions require SOEs and designated monopolies to maintain certain levels of transparency and seek to prevent: – Discrimination by SOEs and designated monopolies in the course of their commercial activities, – anti-competitive practices of monopolies, and – non-commercial assistance causing adverse effects to the interest of another TPP Party State-Owned Enterprises SOEs

Outcomes promote sustainable development and higher levels of environmental and labour standards protection in the region Key environmental outcomes for New Zealand include: – Disciplines and transparency requirements in relation to fish subsidies – An obligation that requires each Party to adopt measures to address trafficking of wild flora and fauna Labour and Environment

Intellectual Property Outcomes Copyright term extension from years Patent-term extension to compensate for unreasonable delays Accession to multilateral intellectual property treaties Stronger protection for technological protection measures that protect copyright works Patent linkage system Accession to the International Convention for the Protection of New Varieties of Plants (UPOV 91) or implementation of a plant variety system that gives effect to it ISP liability relating to copyright infringement or parallel importing Data protection for biologics, new uses of pharmaceutical drugs and agricultural chemicals

The annex will require PHARMAC to make some administrative changes to increase transparency New processes do not change the PHARMAC model or its ability to prioritise its spending and negotiate with suppliers Medical devices are excluded from the scope of obligations for New Zealand Not subject to dispute settlement Transparency and procedural fairness for pharmaceutical products and medical devices

Areas where governments maintain the ability to adopt or retain policies and to regulate regardless of the obligations contained in an FTA. In TPP the exceptions include: – national security – public order – Safety – Health – Environment – Non-renewable resources; and – National treasures of artistic, historic or archaeological value. Exceptions

Reflects the constitutional significance of the Treaty of Waitangi to New Zealand. Part of all NZ’s FTAs since Designed to ensure that successive governments retain flexibility to implement domestic policies that favour Māori without being obliged to offer equivalent treatment to overseas entities. The Treaty of Waitangi Exception

Nothing in TPP will prevent the Crown from taking measures that it deems necessary to meet its obligations to Māori, including under the Treaty of Waitangi. New Zealand’s interpretation of the Treaty of Waitangi shall not be subject to the dispute settlement provisions of TPP. The Treaty of Waitangi Exception

Outreach, including hui-a-iwi Legal verification Signature Parliamentary treaty examination process Implementing legislation Entry into force Next steps

Seeking to protect New Zealand’s way of doing things, and ensuring that we maintain flexibility to decide what is best for us…

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