Impact of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on New Zealand Economy

The 11 members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed the new agreement in Chile on March 8. The New Zealand Ministry of Foreign Affairs and Trade released their National Interest Assessment and ImpactECON’s assessment of the CPTPP in anticipation of the event.

In this report we examine the potential benefits of the CPTPP from reductions in tariffs, tariff-rate quotas on dairy, non-tariff measures on goods and services, and trade facilitation on the New Zealand Economy using the Dynamic ImpactECON model. We find gains for the New Zealand economy of between 0.3% and 1.02%. New Zealand’s exports also rise by between 0.7 and 3.1 per cent, with the strongest growth occurring in the processed food sector.