Access to Japan big win for horticulture in CPTPP

09 Mar 2018

Access to Japan for New Zealand fruit is one of the big wins for horticulture from today’s signing of the Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP), says Mike Chapman, chief executive of Horticulture New Zealand, who is in Chile for the event.

"For the first time, New Zealand will gain preferential access to Japan, the world’s third largest economy, with immediate kiwifruit tariff reductions worth $26 million," Chapman says. "Kiwifruit from Chile has had the advantage in Japan until now, so this is really good news for New Zealand horticulture.

"Apple tariffs will be eliminated over 11 years and this will put us on a level playing field with Australia, which already has preferential access to Japan.

"Horticulture is growing and the world wants access to our fruit and vegetables so the signing of this trade deal is timely. If the CPTPP went ahead without New Zealand, the modelling estimates a $183 million decline in our gross domestic product (GDP).

"As it stands, the deal’s worth to New Zealand is a rise of between $1.2 and $4 billion in GDP.

"It better links us to four of New Zealand’s top 10 trading partners in Australia, Japan, Singapore and Malaysia, which account for 30% of New Zealand goods that are exported.

"For the first time we have a trade agreement with Canada, Mexico and Peru - in addition to Japan - and the deal opens up markets with a combined population of 480 million that consume just under a third of New Zealand’s exports.

"It is a privilege to be in Chile for the signing of this deal that will have both immediate and long-term benefits for our horticulture industry and open up new markets for our highly sought after fruit and vegetables."