World Economy

NZ Says Pacific Trade Deal Will Boost GDP

NZ Says Pacific Trade Deal Will Boost GDPNZ Says Pacific Trade Deal Will Boost GDP

New Zealand estimates a Pacific trade deal would boost its economy by up to 1% as exporters would face reduced tariffs on goods like kiwifruit and beef, AP reported. The analysis Wednesday came as details of the trade pact between 11 countries around the Pacific Rim were released. The countries, which include Japan, Canada and Australia, intend to sign the deal in March. But it won’t come into force until it is ratified by individual nations. President Donald Trump fulfilled a campaign promise by pulling the US out of an earlier version of the deal, previously called the Trans-Pacific Partnership. New Zealand estimates the deal would expand its economy by up to four billion New Zealand dollars ($2.9 billion) a year, according to the analysis released by the ministry of foreign affairs and trade. The analysis concluded that not signing the deal would slightly shrink GDP as the nation lost ground to competitors who had signed up. “On balance, we believe this agreement is clearly in the interests of New Zealand,” trade minister, David Parker, said.


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