Tuesday, 06 October 2015 10:38

TPPA Deal Opens Up North American Market For NZ Equipment and Machinery Builders

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Machinery and equipment rebuilding and reconditioning opportunities will now open up for New Zealand engineers following approval of the Trans Pacific Partnership Agreement.

In the past border clearance on this category had slowed the growth in this sector.

The debate at home and abroad on the trade deal has focused on foodstuffs. In the event the deal removes a variety of tariff obstacles from the free flow of heavy equipment especially in the machine tool and process sector.

The trade deal will now allow engineers in the pressure-vessel capability category to flex their machining technologies for the North American market especially.

Falling shipping costs on all international routes give New Zealand fabricators and rebuilders a growing advantage. So does the proximity of engineers to readily accessible ports such as those at New Plymouth and also Napier.

However, it will take several months or even years, before the agreement actually applies.

It must be ratified by all national parliaments involved. The American political climate is particularly unfavorable: the candidates to the right of presidential (Donald Trump) and left (Bernie Sanders) urges parliamentarians to oppose it.

The White House, however, obtained the agreement to be subject to the procedure of the "Trade Promotion Authority" (TPA), which will force Congress to vote for or against the agreement without being able to amend it.

From the MSCNewsWire Reporters Desk