Advantages of entering CPTPP, Competitiveness and Business. Facilitation Through the Committee established under this chapter, CPTPP would provide a means to improve the environment for New Zealand firms to participate in the regional economy through the improved operation of supply chains for New Zealand goods and services and their integration in regional production networks through trade and investment. This has the potential to reduce the costs of doing business, for example by identifying and addressing specific barriers to trade that can be magnified where multiple borders are crossed as part of regional production networks. There are likely to be more opportunities for increased participation of New Zealand firms in regional 37 Supply chains – are focused on the movement of an input, product or service from a supplier to a customer and the systems to support this. They cover raw materials, production and delivery to the customer. Supply chains can be local, regional or global depending on the extent of their geographic coverage. Value chains – include supply chains, but cover the full range of activities for a particular product or service, and on the value added at each stage of development or production. Value chains cover activities from conception, research, development, design, sourcing raw materials and intermediate inputs, production, marketing, distribution, sales and customer support. Production networks – relate to a particular lead firm’s network of suppliers across their product lines, and how they organise network(s). Production networks may include multiple value chains. production networks for more complex products such as manufactured goods and some food and beverage, than for primary and commodity exports. As a member of CPTPP, New Zealand would have the opportunity to seek appropriate consideration of issues important for New Zealand, for example the particular challenges of integrating into value chains faced by small, distant countries, and for primary sector commodity exporters. (These two factors are judged to lie behind OECD Trade in Value Added (TiVA)38 data, which indicates New Zealand is less integrated into global value chains, of which supply chains are a key component, than other countries.) The Committee will also consider ways in which micro, small and medium size enterprises can best participate in supply chains and regional production networks. New Zealand firms tend to internationalise at an earlier stage in their development than firms in other countries, and could therefor...
