Finlayson ChristopherTRANS-PACIFIC PARTNERSHIP AGREEMENT AMENDMENT BILLSecond ReadingHon CHRISTOPHER FINLAYSON (Acting Minister of Trade): I move That the Trans-Pacific Partnership Agreement Amendment Bill be now read a second time. Can I begin by thanking the Foreign Affairs Defence and Trade Committee for its detailed consideration of the bill. The committee's recommendation is that it be passed with a number of amendments. Although most of New Zealand's Trans-Pacific Partnership (TPP) obligations can be met by New Zealand's existing domestic legal and policy regime some changes are required to ensure that we comply with our obligations. The bill is going to ensure that New Zealand meets the obligations we have signed up to in the Trans-Pacific Partnership agreement (TPPA) and it will help ensure that exporters can start to reap the benefits of this comprehensive and high-quality trade agreement.I want to speak about the select committee's important work on this bill and the changes that the committee has recommended but first let me briefly remind the House why New Zealand signed up to this agreement. The Government recognises that trade is critical to our continued growth and prosperity. For this reason successive Governments have sought to negotiate free-trade agreements to help level the playing field for New Zealand firms selling abroad and thereby boost exports. We know that this both directly and indirectly benefits all New Zealanders. This is our biggest trade deal to date and it is going to lift exports by removing barriers to trade for many exporters of New Zealand goods and services to customers in TPP countries.The 12 countries currently in TPP account for 36 percent of the global economy. In fact our TPP partner countries buy 40 percent of New Zealand's exports worth around $28 billion per year to our economy. Given the scope of the region the agreement presents a huge opportunity for our economy adding an estimated $2.7 billion a year to New Zealand's GDP once it is fully phased in. The TPPA will see total tariff cuts of around $274 million a year on current goods exports. Over 50 percent of this removal of tariffs will take effect as soon as the TPP agreement comes into force. With the exception of some dairy products into some markets and a significantly reduced tariff on beef in Japan all originating New Zealand exports to TPP countries will ultimately be duty-free. It is clear that not being in the TPP would put New Zealand exporters at a competitive disadvantage—Dr David Clark: Output of three dairy farms.Hon CHRISTOPHER FINLAYSON: —especially those from Dunedin I say to Mr Clark. Our exports would become more expensive by comparison as tariffs and other barriers are eliminated on the exports of our competitors but not on New Zealand - made products.The reasons for signing up to the TPPA—Grant Robertson: You should have been trade Minister.Hon CHRISTOPHER FINLAYSON: —are strategic I say to Mr Robertson as well as economic. It is important to note that as a founding member of the TPP New Zealand gains the opportunity to exercise influence on the development of the rules that the agreement will set up for the region. This is both in respect of its present form and more significantly in the future as the membership increases.Crucially the TPPA will not prevent New Zealand Governments from taking measures that are in the interests of all New Zealanders. The main obligations in the TPPA have been designed to allow Governments to make legitimate public policy. This includes policy in the areas of health education and protecting the environment. Special provision has been made in respect of New Zealand's obligations to Māori and like all our free-trade agreements since 2001—Dr David Clark: What about speculation in housing?Hon CHRISTOPHER FINLAYSON: —the TPPA recognises the pre-eminence of the Treaty of Waitangi in New Zealand. Article 29.6 I need not outline for the benefit of Mr Clark because if he is as good as he says he is—Hon Members: Dr Clark.Hon CHRISTOPHER FINLAYSON: —Dr Clark—then he will know all about that clause. This means future Governments are not limited in measures to support Māori. Further to this these measures are not subject to the dispute settlement provisions in the TPPA as stated in article 29.6 that The Parties agree that the interpretation of the Treaty of Waitangi including as to the nature of the rights and obligations arising under it shall not be subject to the dispute settlement provisions of this Agreement."We said all along that we would not negotiate away the New Zealand health system in a trade agreement and we did not. The TPPA will not change the fundamentals of the Pharmac model. Pharmac's ability to prioritise its spending and negotiate with suppliers goes unchanged and the TPPA allows the Government to rule out investor-State dispute settlement challenges over tobacco control measures.No changes will be made to the way New Zealand approves investments relating to sensitive land or fisheries quota and New Zealand still has the ability to impose some types of new discriminatory taxes on foreign purchasers of residential property.Let me say something about the engagement process. The Government has undertaken a comprehensive series of engagements to help the public to understand—Dr David Clark: The Minister should read that EY report. I've given him the heads-up.Mr DEPUTY SPEAKER: The member should mind his mouth.Hon CHRISTOPHER FINLAYSON: —what this agreement means for New Zealanders. These events followed the extensive consultations carried out during the TPP negotiations. Oh let him yell Mr Deputy Speaker. It does not worry me.This year the Government ran a nationwide series of roadshows and hui. I attended some actually. The roadshows aimed at—Grant Robertson: They were the good ones.Hon CHRISTOPHER FINLAYSON: Whangarei was good. The roadshows were aimed at ensuring businesses are prepared to take advantage of the new opportunities presented by the TPPA and to provide information of interest to the wider public and other stakeholders. The dedicated hui briefed a mainly Māori audience on the outcomes of the TPP negotiations and provided an opportunity for attendees to share their views and ask questions. As a result of this engagement some Māori have asked for further information from the Government about accessing support to achieve positive outcomes through the TPPA. This part of the economy has long been export-focused with trade pre-dating the 1830s as Māori provided food water and firewood to the whaling ships in exchange for goods such as iron tools and muskets. Today the Māori economy comprises around 5.6 percent of New Zealand's total GDP and has an asset base worth over $42 billion contributed to greatly by many of the outstanding settlements that have been achieved in recent years.The public has also had an opportunity to engage with and influence the contents of the bill during the select committee's work. The committee received 85 submissions from the public and there are a number of recommended amendments which I will take Mr Clark or Dr Clark—we must be accurate—through. After considering public submissions and the advice of officials the select committee has recommended a number of changes. First the bill makes it clear that the changes to New Zealand law introduced by the bill will commence only on the date that the TPPA enters into force in New Zealand. Some submitters have raised the concern that the commencement clause in the bill did not make this clear. Well now it is clear.The intellectual property provisions of the bill attracted particular attention from some submitters especially in respect of the change of the copyright term from 50 years to 70 years. Some submitters supported the extension; others opposed it. The extension of the copyright term is the main cost of the TPP agreement for New Zealand estimated at $55 million per year once it is phased in. However I say to Mr Robertson this cost has to be considered alongside the many many many positives for the economy as a whole from the TPP.There are so many good things I could talk about but I am short on time so let me say this. The Government needs to make certain regulations and changes to policy and practice in order to ratify the TPPA. These changes will take effect only from the date that the TPPA enters into force for New Zealand and these changes were laid out in the national interest analysis on the Ministry of Foreign Affairs and Trade's website which is available for all to see. The Government wants to see the bill enacted as soon as possible so that New Zealand can be in the first tranche of countries to bring the TPPA into force. I commend the amended bill to the House and I say that it is not too late for Labour to come to its senses and support the bill."