Press Release – It’s Our Future
The US official report on the Trans-Pacific Partnership Agreement (TPPA) shows tiny economic benefits of just 0.15% of GDP by 2032, and says economic modelling had exaggerated the gains. This supports criticisms by economic researchers in New Zealand of the …Economic benefits of TPPA overstated
The US official report on the Trans-Pacific Partnership Agreement (TPPA) shows tiny economic benefits of just 0.15% of GDP by 2032, and says economic modelling had exaggerated the gains. This supports criticisms by economic researchers in New Zealand of the modelling undertaken by the New Zealand government.
Barry Coates, spokesperson for It’s Our Future, the main campaign group on the TPPA, commented: “The government has based its case for the TPPA on speculative economic modelling that relies on biased assumptions. The economic case for the TPPA doesn’t stack up.”
“It is time for the government to step back from the ratification process and undertake a comprehensive assessment of the economic costs and benefits of the TPPA, as well as the impacts on the environment, health, jobs and New Zealand’s small and medium-sized companies.”
“The US government report on the TPPA should be the nail in the coffin of the TPPA in the US. There is little benefit even for the country that stands to gain the most.”
“It is time to re-think the New Zealand government’s approach to international trade and investment negotiations. We should focus on sound trade policies that are good for New Zealand businesses, workers, communities and the environment, rather than agreements like the TPPA that are about excessive rights and no responsibilities for multinational companies.”
The New Zealand government’s case for the TPPA was built on economic modelling that suggests there will be economic benefits of 0.9% of GDP by 2030. The estimates were drawn from Computable General Equilibrium (CGE) modelling commissioned by MFAT. However, the US ITC report found that CGE modelling by the Peterson Institute grossly exaggerated the benefits of the TPPA. The Peterson Institute report was used as a key source for MFAT’s modelling.