Disadvantages of entering CPTPP, Trade in Goods Sample Clauses

Disadvantages of entering CPTPP, Trade in Goods. No disadvantages have been identified for New Zealand from entering the CPTPP resulting from the tariff commitments that other CPTPP Parties would make to New Zealand. Where these tariff commitments have an effect, they would be beneficial (leading to improved competitiveness for New Zealand exporters). New Zealand’s reciprocal tariff commitments under CPTPP may, at the margins, expose some industries and sectors to more competition and create adjustment effects for domestic producers as a result of increased exposure to foreign suppliers. In order to help diminish the potential for any negative adjustment effects, New Zealand’s tariff schedule provides longer (5 to 7-year) phased elimination periods for certain items, some of which are more sensitive to imported goods. This includes some clothing/textiles items, some plastics, some machinery and electric machinery, some processed wood products and wooden furniture, and some steel, iron and aluminium items. The effects are mitigated further by the fact that New Zealand’s economy is already largely open, with most goods imported into New Zealand already facing no import tariff. The tariffs New Zealand still has in place are relatively low (mostly five percent, and none more than ten percent). These remaining tariffs have also been largely eliminated for imports from many of New Zealand’s largest trading partners, including China, ASEAN and Korea given preferential access under existing FTAs. Note also that, in the case of any serious injury18 arising from this tariff liberalisation, New Zealand would be able to apply a transitional safeguard action (see Trade Remedies section below).
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