McKelvie Ian: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeMcKelvie Ian: Oral Questions — Questions to Ministers[Sitting date: 02 March 2016. Volume:711;Page:9298. Text is incorporated into the Bound Volume.]12.IAN McKELVIE (National—Rangitīkei) to the Minister for Primary Industries: How will the Trans-Pacific Partnership support new and emerging primary industries?Hon NATHAN GUY (Minister for Primary Industries): Although the Trans-Pacific Partnership (TPP) is very beneficial to our major exporters it will also support a range of small and emerging primary industries. Honey exports globally have jumped up to $286 million in 2015 up $84 million on the previous year. The TPP will eliminate tariffs in the US at entry into force and a 22.5 percent tariff into Japan after 8 years. Craft beer production has the potential of following the same success as our wine industry. New Zealand beer exports to TPP countries were worth $29 million in 2015. The TPP will eliminate all tariffs on beer including the $1.80 per litre tariff into Malaysia and a 23 percent tariff into Viet Nam. The TPP will also remove the 11.2c per kilogram of tariffs imposed on all of our New Zealand avocados currently exported into the USA and eliminate the 3 percent tariff into Japan. This will result in around $400000 a year in tariff savings for this very promising industry.David Seymour: Will the Minister talk to some of his ministerial colleagues about domestic barriers to the craft beer industry such as the regulatory burden that led to the cancellation of the New Zealand Beer Festival just last week?Hon NATHAN GUY: Oh I am always interested to have discussions with my colleagues in Government about the importance of the tariff obligations on the new and emerging beer markets and any complications that the member does see that are holding back domestic production in the very exciting emerging market of boutique brewing.Ian McKelvie: Why is the TPP so important to growth in these new and emerging industries?Hon NATHAN GUY: For emerging industries tariff barriers can be more prohibitive than for the larger industries. Removing barriers to trade gives exporters an opportunity to grow faster than they otherwise would have. If you have a look at Liberty Brewing Company owner Joseph Wood he said that the TPP opens a gateway for us exporting over to Asia and he goes on to say it would help make our pricing more competitive overseas. New Zealand exporters of avocados will now have duty-free access to Mexico with the 20 percent tariff eliminated on entry into force. Although Mexico has not been a previous market for avocados the TPP now provides a viable new opportunity for them.Dr David Clark: Does he believe that market access equivalent by 2030 to the output of three large dairy farms—that is three farms not profit but output—is substantial enough to nullify the then Minister of Trade’s threat to walk away if dairy products were excluded?Hon NATHAN GUY: The dairy industry is the biggest sector that benefits from TPP—$102 million that will be removed for the dairy industry which right now they believe is vitally important. I cannot believe that the member’s party will not support the Trans-Pacific Partnership when every other leader from the Labour Party has. That member should go down to his electorate and hang his head in shame.