Kiwi and Japanese business leaders talk trade issues in Queenstown

 

My assessment of the meeting is that the business leaders from Japan were very supportive of TPP in principle as a means of boosting Japan’s economic growth, but are aware of the practical challenges around joining this year.

They were realistic about the political challenges that PM Abe faces from domestic interests such as agriculture but were generally optimistic that he will push ahead in the national economic interest.

Timing is a real challenge given Upper House elections in July pose constraints on action before then but TPP negotiations aim to wrap up by end of 2013. So Japan may only have a small window of opportunity to join TPP this year. Business leaders hoped PM Abe would publicly announce japan’s intention to join TPP this month to enable consultations with TPP members to get underway ASAP.

The NZ side delivered some clear messages around the need for TPP to remain ambitious, high quality and comprehensive ie no product or sector exclusions. Time frames can be negotiated but the principle of comprehensiveness cannot from the NZ point of view.

Interesting that there was no comment from Japanese side on RCEP although NZ side mentioned it. They were focussed on TPP.

The New Zealand International Business Forum (NZIBF) is taking advantage of the NZPGA Pro-Am Championship and Challenge Golf Tournament in Queenstown to hold a business forum today with visiting Japanese business leaders.

“The presence in New Zealand of a number of senior Japanese business representatives provides an ideal opportunity for an informal exchange of views on issues relevant to business in both countries,” said NZIBF Chairman Sir Graeme Harrison. “Free trade negotiations are expected to commence in mid-year in the context of the Regional Comprehensive Economic Partnership (RCEP).  Japan is also exploring membership of the Trans Pacific Partnership (TPP).  We will want to discuss the implications of a new government in Japan for these initiatives, update our visitors on the prospects for the New Zealand economy particularly in the light of the quickening pace of the Christchurch rebuild and explore the potential for expanding tourism and other trade links.”

Japan is New Zealand’s fourth largest trading partner, with two-way trade worth NZ$6.1 billion in 2011.

Sir Graeme said that Sir Maarten Wevers, former head of the Prime Minister’s department and former Ambassador to Japan, would chair the discussions in Queenstown. Around fifty participants from across technology, agri-business, tourism, forestry, and financial services sectors are expected to attend the forum.

The NZ PGA Championship has proven to be a successful platform to draw international business leaders to New Zealand. The opportunity to play with top international golfers in a world-class event has drawn a number of very senior business people from Japan, Korea, and the United States.