Press Release – New Zealand First Party
The new Minster of Trade, Hon Todd McClay, deserves congratulations for helping to secure a trade breakthrough but one that raises big questions over the TPPA and Korea Free Trade Agreement, says New Zealand First. Rt Hon Winston Peters
New Zealand First Leader
Member of Parliament for Northland
21 DECEMBER 2015
New Trade Minister Does Well – Peters
The new Minster of Trade, Hon Todd McClay, deserves congratulations for helping to secure a trade breakthrough but one that raises big questions over the TPPA and Korea Free Trade Agreement, says New Zealand First.
“Unlike the these arrangements, the elimination of agricultural export subsidies under the World Trade Organisation’s (WTO) Nairobi agreement eliminates $22 billion worth of subsidies our farmers and exporters currently face,” says the Rt Hon Winston Peters.
“The Nairobi breakthrough breathes new life into the WTO and Mr McClay deserves congratulations. Whilst the old parties have chased the TPP, our country’s attention has seriously been on the wrong prize by treating the WTO as an also-ran.
“The WTO deal on export subsidies will see many developed countries axe them immediately with developing countries following within three years. That said, it is more likely up to seven years before they’re gone completely.
“The elimination of agricultural export subsidies represents low hanging fruit because the world spends hundreds of billions subsidising agriculture each year.
“This is led by China, which spends an incredible $245 billion propping up its farmers and as Economist magazine noted in May, global agricultural subsidies are increasing and not falling.
“Mr Groser shares some of the responsibility, because the TPP and the Korea ‘free trade’ agreements enshrine subsidies and protectionism. New Zealand First firmly backs the WTO route because it will meaningfully boost trade and export returns.
“Ironically, the focus on the Paris climate change agreement may just provide the spur because our farmers are the most carbon efficient on earth,” says Mr Peters.