TPP Fact Check

Setting the record straight on the TPP

FALSE: The TPP will take away our sovereignty

New Zealand is part of many international agreements, binding our government to commitments ranging from human rights to trade.
 
New Zealand governments have the sovereign right to leave these agreements at any time, but we make and keep commitments to other countries so that we can have the benefits of the commitments they make to us in return.
 
Without trade agreements like these, New Zealand exports would be blocked by huge tariffs in other countries, costing jobs and hurting workers and the regions the most.

Authorised by T Macindoe MP, 543 Te Rapa Rd, Hamilton.

TRUE: The TPP will add an extra $2.7 billion to New Zealand's GDP by 2030

The economic benefits of the TPP to New Zealand will increase each year, reaching a net $2.7 billion in GDP by 2030. Dollars and cents are all well and good, but what this really means is more jobs and higher incomes for everyday New Zealanders.

TRUE: The TPP connects New Zealand to the world's fastest growing emerging markets

Emerging markets in Asia and the Americas are driving world economic growth.

Joining the TPP gives New Zealand a prime advantage in some of these critical growing markets. Choosing not to join our own region’s major trading block would be economic madness and risk New Zealand exporters being marginalised.

By playing politics on the TPP, Labour is putting our economic future and Kiwi jobs at risk.

 

TRUE: The TPP will remove 93% of all tariffs on NZ exports to TPP countries

Import tariffs means consumers overseas have to pay additional taxes on New Zealand products. Removing these tariffs will make it easier for New Zealand exporters to sell more overseas and protect jobs in export industries from agriculture to manufacturing.

 

TRUE: The TPP will improve environmental protections in partner countries

The TPP contains legally binding commitments on trade and environment that require member countries to effectively enforce their environmental laws, and not to derogate from them in order to encourage trade or investment.

TPP also contains specific commitments intended to help address global environmental issues such as trade in illegally harvested wild fauna and flora, fishing and harmful fisheries subsidies.

A strong voice for developed economies like New Zealand at the TPP negotiating table is critical to argue for sustainable growth across Asia-Pacific.

 

FALSE: The TPP will stop future governments from regulating foreign property investment

The TPP will mean the government agrees not to ban the purchase of property by buyers from some countries, but there are many other ways to regulate foreign investment that are not affected by the agreement.

The many existing protections on foreign investment in New Zealand remain completely unchanged by this agreement.

 

FALSE: Supporting the TPP is a left-right issue

Actually, it’s an economic literacy issue. There are many prominent centre-left figures who have voiced their support for the TPP, including the centre-left government in the USA, and former Labour Leaders Phil Goff, David Shearer, and Helen Clark.

 

FALSE: The TPP will prevent the government from meeting its obligations to Maori

There is not a single clause in the TPP that will impact the Crown’s obligations to Māori. In fact, the TPP includes a specific provision preserving the pre-eminence of the Treaty of Waitangi in New Zealand.

 

FALSE: The TPP will drive up the cost of medicines

Consumers will not pay more for subsidised medicines as a result of the TPP. The TPP requires only a few administrative changes to PHARMAC, costed at $2.2 million a year, and an average cost of just $1 million per year from a patent term extension. These are tiny costs which must be weighed up against the much larger economic benefits of the TPP.

 

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