What the CPTPP means for New Zealand's rural sector

Rural Exchange 03/11/2018

The passing of the CPTPP trade deal is being celebrated in the rural sector, and is set to provide a boost to many industries.

The required six nations have now ratified the 11-nation agreement and the countdown has begun towards the first round of tariff cuts early next year.

Mike Petersen, New Zealand's Special Agriculture Trade Envoy, told RadioLIVE it's really good news for New Zealand.

"This is hugely exciting. In this agreement, we get four new trade agreements with countries we didn't have agreements with before."

Those countries include big economies like Canada, Mexico and Japan.

The agreement will come into force on the last day of this year, which means for the beef industry, tariffs will drop to 26 percent, followed by a further cut on 1 January.

The effects of the CPTPP will also increase the per-head return for bull farmers.

David Parker signed the deal in March. Photo: Getty.

The dairy industry has however missed out on a number of products in some of the markets.

"To be fair, dairy were the ones who were hardest done by in this agreement. It was the hardest discussion to have," Mr Petersen says.

Watch the full interview with Mike Petersen above.

Rural Exchange with Hamish McKay, Sarah Perriam and Richard Loe, 5-7am Saturday and Sunday on RadioLIVE with Carter’s Tyre Service. Click here for all the ways to watch and listen.