The Trans-Pacific Partnership (TPP) agreement, which drew heavy criticism in Malaysia and other participating countries in response to sensitive chapters, was signed Thursday in downtown Auckland.
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Ministers from the 12 member countries, including newly minted New Zealand Trade Minister Todd McClay, are descending on Auckland on Thursday for the official signing ceremony, which marks another step towards the world’s largest free trade pact becoming a reality.
The TPP led by the USA accounts for about 40 percent of the world economy.
The US-led initiative is a key part of President of United states of America Barack Obama’s so-called pivot to Asia but has proved to be a controversial issue ahead of the Presidential elections in the United states of America (USA) in November 2016.
But those signing the deal say that’s nothing new.
Many people in New Zealand remain opposed to the deal, and hundreds protested outside the Auckland venue where it was being signed, blocking traffic on some streets, while others protested in the capital, Wellington. Froman has warned before that any delay in endorsing the deal after five years of negotiation and signing of the TPP is very important to enhance the efforts and to set a high standard for the rules of the road in the region of Asia Pacific.
The TPP will enter into force once at least six original signatories, accounting for at least 85 per cent of economic activity across the TPP countries, have ratified the deal.
A leading TPP opponent in New Zealand, law professor Jane Kelsey, wrote in the New Zealand Herald that the agreement guaranteed foreign states and corporations “a right of input into regulatory decisions” which local organisations would not have.
It provides free-trade with Canada, Mexico and Peru for the first time.
The agreement has the support of major business groups including Business New Zealand and the Employers and Manufacturers Association, who this week said New Zealand stands to gain significantly from TPP.
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For U.S. companies, it’s an opportunity to sell more products. Key finished by saying that the deal will benefit American workers businessmen and farmers. “We are working with our stakeholders, our members of Congress, the leadership of Congress, educating everybody as to what’s in the agreement, addressing their questions and concerns”, said Froman.
