Big gains possible from TPP

New Zealand has a lot more to gain from the Trans-Pacific Partnership now Japan's in the negotiations, says Sir Graeme Harrison. Speaking on TV3's The Nation, the ANZCO Foods chairman said New Zealand could bring in $5 billion per year in our exports now Japan was involved in the Trans-Pacific Partnership (TPP), compared to $3.5 billion without Japan. The increase in exports to Japan could mean a 2% gain in GDP, with many of the gains in the primary industries, he said. Japan has been a very protected economy, with tariffs of over 300% on NZ milk powder and an estimated USD$1 billion in direct support to Japanese farmers. But Sir Harrison said Japan had been going through a deflationary phase for a long time. "It's time for reform and Japan knows that it has to deal with this, and will use TPP as a pretext to undertake very serious structural reforms." He said Japan's inclusion has made the TPP more worthwhile for the United States, which in turn will work in New Zealand's favour. "All of this comes together with two countries, the world's first and third largest economy, both believing in a rules-based trading system, that are on our side, and we can have quite an influence in that process."