Inside Eastside Makoia Community News: Free Trade creates more productive economy
Trade is important to our economy. We’re a trading nation producing high quality goods that consumers around the world want to buy. Many local jobs are created and maintained thanks to the things we produce in the Rotorua district. In fact 60 per cent of New Zealand’s economic activity is generated through buying and selling goods and services overseas.
Any trade preferences through reduction in duty rates the Government can secure through FTAs means money in pockets of New Zealanders. It means businesses can be more competitive and more productive, allowing them to expand and create more jobs.
The Trans-Pacific Partnership was concluded recently. This agreement gives our exporters fantastic access to more than 800 million people in Asia, North America and the Pacific, and is expected to add $2.7 billion to our economy by 2030.
The deal has great benefit for Rotorua. TPP removes tariffs on all forestry products going into Canada, the United States, and Vietnam, and 69 per cent of the tariffs for products going into Japan. This includes processed and manufactured timber and wood products. It means significant savings for the industry – estimated to be around $9 million currently and likely to grow significantly in coming years. Almost every single product grown, manufactured or produced in Rotorua will go into these 11 countries duty free - a big win for our local economy.
Increasing trade is part of the Government’s plan to diversify and strengthen our economy, support more jobs, and create more opportunities. High quality free trade agreements are good for the economy and they’re good for areas that rely on exports like Rotorua.