Government to force Labour to vote for or against whole TPP package

Monday 9th May 2016

The government will try to stop the Labour Party picking and choosing which parts of the Trans-Pacific Partnership it's willing to support, forcing it instead to vote for or against the whole package of law changes required by the controversial trade and investment pact.

Trade Minister Todd McClay tabled the Trans-Pacific Partnership Agreement Amendment Bill in Parliament as an omnibus bill, meaning it bundles changes to various bills into a single piece of legislation. A more normal process would have been to introduce an omnibus bill, then split it into several separate bills, each requiring a separate parliamentary vote.

The foreign affairs, defence and trade select committee delivered its report on the TPP deal late last week, clearing the way for legislation to be introduced. New Zealand doesn't need to change much law to enact TPP, with the main areas being tariff cuts, trade remedies, and intellectual property, all of which are covered by different pieces of legislation.

In an emailed statement to BusinessDesk, McClay denied the omnibus approach was a parliamentary tactic to embarrass Labour by forcing it to vote against a free trade deal when the party claimed still to support free trade while opposing specific elements of the TPP.

“No tactics. Labour are either pro-trade or they are not," said McClay. "It is the government’s intention to follow standing orders and have one vote during the third reading on TPP. Should Labour decide to vote against TPP, the business community will see this for what it is.”

Labour is especially opposed to provisions in the agreement that would prevent it from restricting or banning the sale of real estate to foreign purchasers. This was one of five 'bottom lines' the government sought to accommodate during the final TPP negotiations last November, with then Trade Minister Tim Groser believing Labour would be satisfied with preserving the right to impose discriminatory taxes to discourage foreign purchasers

The legislative amendments will not come into effect until TPP enters into force for New Zealand, which will only occur if several of the largest signatories - particularly the US and Japan - sign it into their own laws over the next two years.

In both Washington and Tokyo, political appetite for pushing the TPP through parliamentary processes is weak because of looming elections. Both the US Republican and Democrat presumptive presidential candidates, Donald Trump and Hillary Clinton, are signalling little or no support for TPP. Specialist trade newsletters are reporting opposition to passing TPP in the so-called 'lame duck' sitting of Congress late this year, between the departure of sitting president Barack Obama and whoever is sworn in to replace him early next year.

BusinessDesk.co.nz

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