The ratification of the CPTPP trade deal is being celebrated in the rural sector, and is set to provide a financial boost to many industries.
The required six nations have now ratified the 11-nation agreement and the countdown has started towards the first round of tariff cuts early next year.
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Federated Farmers President Katie Milne said while it has been a long and bumpy road, producers and our economy will soon reap the benefits.
"Federated Farmers has said from the outset that a Pacific Rim agreement would be a major boost to our ability to trade and New Zealand's future prosperity, as well as a useful antidote to the economic protectionism brewing in some other parts of the world," she said.
She said it was particularly good news for beef farmers and horticulturalists but has the potential to develop new technologies and economic partnerships while reducing business costs for all industries.
The CPTPP is New Zealand's first free trade deal with Japan - the third largest economy in the world - and immediately removes the tariff advantage that Australia's beef producers have benefited from at New Zealand red meat farmers' cost.
"There are also fantastic opportunities for us in massive markets such as Canada and Mexico," said Ms Milne.
Trader Minister David Parker said the agreement will help lift incomes across the country and have a major impact on the rural sector.
"For example, one of Northland's main exports is fish which have had 20 percent tariffs to Mexico, and that will go," he said.
"Buttercup squash growers in Gisborne faced big tariffs and they will now be $50,000 a year better off," said Mr Parker.
He also cited beef exports to Japan and wine exports to Canada as examples of industries set to benefit.
Newshub.
