Speech by John Adank, NZ

� Trade Ministers defined the broad outlines of a deal and this was endorsed by
Leaders. It represents the base from which the negotiations will proceed.
� There is a lot of difficult work still to do in order to overcome the sensitivities in
the negotiation, but the broad outlines agreed in Honolulu are an important
milestone in that process.
� As we enter this more intensive phase of the negotiations, every participating
economy has committed to delivering a high quality, comprehensive outcome
in TPP.
� At the Honolulu meeting, Leaders also directed negotiators to finalise the TPP
agreement this year. That is an ambitious timetable, but nonetheless one to
which the group is working to deliver on.
� The eleventh negotiating round took place in March in Melbourne, Australia.
Subsequent rounds will be held at six to eight week intervals during the year.
Many of the individual working groups have also been meeting
intersessionally in order to maintain the momentum.
� While we are aiming for a 21 st century trade agreement – there remain some
outstanding issues from the 2oth century trade agenda. It is important to
appreciate therefore the commitment in the TPP Trade Ministers’ Report
(endorsed by Leaders in Honolulu) to eliminate tariffs and other barriers to
trade, with the goal of “comprehensive duty free access to each other’s goods
markets”.
� All of the TPP negotiators understand that this will not be easy. This is the
political challenge facing TPP members. WTO-consistent transitional
arrangements will be necessary.
� With respect to the sensitive agriculture sector, it may well take a decade to
allow for gradual and progressive liberalisation. But “elimination” of tariffs is
the aim.
� I wanted to comment here on New Zealand’s dairy objectives in the TPP and
related contexts, which we know is a topic of interest to the agriculture sector
here in Mexico.
� There are a number of realities about this which are not well understood:
New Zealand is a small producer of dairy products. We produce only 2.5 per
cent of world milk, which is equivalent to the same amount that the Indian
state of Uttar Pradesh produces. There is scope to increase production. Our
exports could therefore increase by around 2-3 per cent per annum. Based
on these projections, New Zealand could produce another 4 to 7 million
tonnes of wholemilk equivalent by 2025.
� But that increase in production is far outstripped by the projected growth in
demand for milk – especially from the likes of China and India. New Zealand
will not be flooding TPP dairy markets. There is a great future for all dairy