5 May 2012

Trade treaty could boost GDP 0.83%, says lobby

6:42 pm on 5 May 2012

A lobby group pushing for greater trade with the United States says research shows trade liberalisation in the Asia-Pacific region would make the New Zealand economy grow.

The New Zealand United States Business Council says the Trans Pacific Partnership, which is currently under negotiation, could add about $2.1 billion a year to the economy by 2025.

The council says the research shows it would boost New Zealand's GDP by 0.83 per cent.

The research was done by a Hawaii thinktank, the East-West Center, and reviewed for the council by the New Zealand Institute of Economic Research.

If approved, the Trans Pacific Partnership would theoretically free-up trade, but it has come in for criticism from union and left-wing opponents, on issues such as internet regulation, protection of intellectual property, and possible constraints on government-backed purchases of pharmaceuticals.

Japan, Canada and Mexico have both been lobbying to be allowed to join the TPP trade negotiations, but the United States is reported to prefer to confine the talkes to the existing nine countries - the US, New Zealand, Australia, Chile, Peru, Singapore, Malaysia, Vietnam and Brunei.