CPTPP Final National Interest Analysis for 8 March
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Comprehensive and Progressive Agreement for Trans-Pacific Partnership National Interest Analysis March 2018 Table of Contents Table of Contents Frequently Used Acronyms and Terms 1 1 Executive summary 3 2 Nature and timing of proposed treaty action 13 3 Reasons for New Zealand becoming a Party to the Treaty 15 3.1 Enhanced trade and economic linkages 15 3.2 New market access opportunities 16 3.3 Greater coherence of trade rules 17 3.4 Advancement of New Zealand’s strategic interests 18 3.5 Opportunities for new membership 19 3.6 The consequences of New Zealand not joining 19 4 Advantages and disadvantages to New Zealand of the treaty entering into force and not entering into force for New Zealand 21 4.1 Trade in Goods 21 4.2 Rules of Origin 28 4.3 Textiles 30 4.4 Customs 30 4.5 Trade Remedies 31 4.6 Sanitary and Phytosanitary (SPS) Measures 32 4.7 Technical Barriers to Trade (TBT) 34 4.8 Investment (including Investor-State Dispute Settlement) 36 4.9 Cross-Border Trade in Services 42 4.10 Financial Services 45 4.11 Temporary Entry 47 4.12 Telecommunications 48 4.13 Electronic-Commerce 50 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) National Interest Analysis Page 1 Table of Contents 4.14 Government Procurement 52 4.15 Competition Policy 55 4.16 State-Owned Enterprises 56 4.17 Intellectual Property 59 4.18 Intellectual Property: UPOV 91 65 4.19 Intellectual Property: Other IP Treaties 68 4.20 Labour 69 4.21 Environment 70 4.22 Cooperation and Capacity Building 72 4.23 Competitiveness and Business Facilitation 73 4.24 Development 74 4.25 Small and Medium-Sized Enterprises 75 4.26 Regulatory Coherence 76 4.27 Transparency and Anti-corruption 77 4.28 Legal and Institutional Issues 78 5 Legal obligations which would be imposed on New Zealand by the treaty action, the position in respect of reservations to the treaty, and an outline of any dispute settlement mechanisms 82 5.1 Initial Provisions and General Definitions 82 5.2 National Treatment and Market Access for Goods 82 5.3 Rules of Origin and Origin Procedures 89 5.4 Textile and Apparel Goods 93 5.5 Customs Administration and Trade Facilitation 94 5.6 Trade Remedies 95 5.7 Sanitary and Phytosanitary Measures 96 5.8 Technical Barriers to Trade 101 5.9 Investment 111 5.10 Cross-Border Trade in Services 123 5.11 Financial Services 126 5.12 Temporary Entry for Business Persons 133 5.13 Telecommunications 134 5.14 Electronic Commerce 140 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) National Interest Analysis Page 2 Table of Contents 5.15 Government Procurement 142 5.16 Competition Policy 149 5.17 State-Owned Enterprises 150 5.18 Intellectual Property 156 5.19 Labour 178 5.20 Environment 180 5.21 Cooperation & Capacity Building 186 5.22 Competitiveness & Business Facilitation 186 5.23 Development 187 5.24 Small and Medium Enterprises 187 5.25 Regulatory Coherence 187 5.26 Transparency and Anti-corruption 188 5.27 Administrative and Institutional Provisions 191 5.28 Dispute Settlement 192 5.29 Exceptions 193 5.30 Final Provisions 196 5.31 Side Instruments to CPTPP 197 6 Measures which the Government could or should adopt to implement the treaty action, including specific reference to implementing legislation 200 6.1 Changes Required 200 6.2 CPTPP Bill 203 7 Economic, social, cultural and environmental costs and effects of the treaty action 205 7.1 Economic effects 207 7.2 Social effects 213 7.3 Effects on Māori 216 7.4 Cultural effects 219 7.5 Environmental effects 220 8 The costs to New Zealand of compliance with the treaty 223 8.1 Tariff revenue 223 8.2 Costs to government agencies of implementing and complying with the FTA 224 8.3 Costs to businesses of complying with the FTA 227 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) National Interest Analysis Page 3 Table of Contents 9 Completed or proposed consultation with the community and parties interested in the treaty action 228 9.1 Engagement overview 228 9.2 Engagement with Māori 229 9.3 Public engagement sessions 230 9.4 Other stakeholder engagement 230 9.5 Previous TPP consultation 230 9.6 Summary of issues raised 231 9.7 Addressing concerns 232 9.8 Inter-departmental consultation 234 10 Subsequent protocols and/or amendments to the treaty and their likely effects 235 11 Withdrawal or denunciation provision in the treaty 236 12 Agency Disclosure Statement 237 Guide to CPTPP Chapters 238 Overview of the suspensions 241 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) National Interest Analysis Page 4 Frequently Used Acronyms and Terms Frequently Used Acronyms and Terms ANZCERTA The Australia and New Zealand Closer Economic Relations Trade Agreement. AANZFTA The ASEAN-Australia-New Zealand Free Trade Area. ANZTEC The Economic Cooperation Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation. ASEAN The Association of Southeast Asian Nations. AVE Ad-valorem equivalent, a method of quantifying a barrier to trade by determining an equivalent barrier expressed in terms of a percentage of price (the ad valorem equivalent). The Berne Berne Convention for the Protection of Literary and Artistic Works, as revised at Paris, July 24, 1971. Convention The Budapest Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Treaty Patent Procedure (1977), as amended on September 26, 1980. CER New Zealand-Australia Closer Economic Relations, a comprehensive set of trade and economic arrangements including the Australia and New Zealand Closer Economic Relations Trade Agreement which entered into force on 1 January 1983. CGE Computable General Equilibrium (CGE) models, used by economists to capture the effects of changing trade barriers on GDP, trade flows, national welfare and other variables. CPTPP The Comprehensive and Progressive Agreement for Trans-Pacific Partnership Customs The New Zealand Customs Service. FDI Foreign Direct Investment. FTA Free Trade Agreement. GATS Global Agreement on Trade in Services. (The WTO Agreement covering trade in services.) GATT Global Agreement on Tariffs and Trade 1994. (The WTO Agreement covering trade in goods.) GDP Gross Domestic Product. GI Geographical indications, a sign or name used in relation to goods that have a specific geographical origin and qualities essentially attributable to that origin, for example Champagne. GPA WTO Agreement on Government Procurement. HS The Harmonized Commodity Description and Coding System (Harmonised System, HS), a near-universal method for classifying international trade. ICT Information and communication technology. ILO International Labour Organization. IP Intellectual Property. IPONZ Intellectual Property Office of New Zealand, the government agency responsible for the granting and registration of intellectual property rights. ISDS Investor-State dispute settlement. Medsafe New Zealand Medicines and Medical Devices Safety Authority. Responsible for the regulation of medicines and medical devices in New Zealand, and ensuring that medicines and medical devices are acceptably safe. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) National Interest Analysis Page 1 Frequently Used Acronyms and Terms MBIE The Ministry of Business, Innovation and Employment. MFAT The Ministry of Foreign Affairs and Trade. MPI The Ministry for Primary Industries. MFN Most-favoured-nation, a requirement that preferential treatment extended to one country (the “most favoured”) be extended to others (e.g. to other TPP Parties). MNZFTA Malaysia-New Zealand Free Trade Agreement. National A requirement that the same level of treatment extended to domestic entities be extended to others (e.g. to Treatment other TPP Parties). NIA National Interest Analysis. NTM Non-tariff measure. NZTE New Zealand Trade and Enterprise. ODI Outward Foreign Direct Investment OECD Organisation for Economic Co-operation and Development. PHARMAC Pharmaceutical Management Agency. The New Zealand government agency that decides which pharmaceuticals to publicly fund in New Zealand. PVR Plant variety rights, which provide the breeders of new varieties of plants with limited rights to control the commercial exploitation of their new varieties. SDR International Monetary Fund Special Drawing Rights, a unit of account used by the International Monetary Fund and based on a basket of international currencies. SMEs Small and medium-sized enterprises. SOE State-Owned Enterprise. SPAM Unsolicited commercial electronic messages. SPS Sanitary and Phytosanitary. (WTO Agreement on the Application of Sanitary and Phytosanitary (Agreement) Measures.) TBT Technical Barriers to Trade. (WTO Agreement on Technical Barriers to Trade.) (Agreement) TNF Trade Negotiations Fund. A New Zealand government inter-agency fund for the negotiation of Free Trade Agreements and to maximize the scope for New Zealand to enter and to gain from these agreements. TPP The Trans-Pacific Partnership. TRIPS Agreement on Trade-Related Aspects of Intellectual Property Rights. UNCTAD United Nations Conference on Trade and Development. UPOV The International Convention for the Protection of New Varieties of Plant. WCT WIPO Copyright Treaty, done at Geneva, December 20, 1996. WIPO World Intellectual Property Organization. WPPT WIPO Performances and Phonograms Treaty, done at Geneva, December 20, 1996. WTO World Trade Organization. Comprehensive and Progressive Agreement for Trans-Pacific Partnership