In a submission to the Parliamentary Foreign Affairs, Defence and Trade Committee, the forum, made up of senior business leaders working to promote NZ’s engagement in the global community, said ratification will help NZ’s economic recovery from covid and send a valuable signal about the ongoing importance of trade liberalisation to the global community.
“Were NZ not to ratify, our competitors in RCEP markets would gain benefits denied to us and NZ would not be a party to future evolution of the agreement,” the submission said.
NZ’s place in regional value chains would be eroded, exports from competitors would be favoured and comparably cheaper than NZ’s, and investment would be diverted away from NZ to other RCEP countries.
The forum is pleased that RCEP contains enhanced trade facilitation measures and other provisions that respond to concerns raised by NZ exporters regarding non-tariff barriers.
“There are improved rules to address non-tariff barriers, including faster customs clearance of perishable products, such as seafood, chilled meat and horticultural products, within six hours of arrival including (in exceptional circumstances) release of such goods outside normal business hours which should reduce risk of spoilage and save exporters money,” the submission said.
“RCEP also includes a new consultation system for addressing non-tariff barriers, and a forum for discussing good regulatory practice around trade in goods. We welcome the greater transparency on import licensing procedures that will be conferred by the RCEP.”
RCEP is a free trade agreement (FTA) between the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, NZ, the Philippines, Singapore, South Korea, Thailand, and Vietnam.
The 15 economies involved are home to almost a third of the world’s population, and take more than half of NZ’s exports.
Trade and Export Growth Minister Damien O’Connor signed the deal in November but it needs to be ratified by Parliament.
