FTAs have an impact on the macroeconomic indicators that measure the growth and trade flows of our economy. Economic theory suggests that the most relevant measure of the quantifiable impact of FTAs on the New Zealand economy as a whole is through the change in “welfare” (that is, the value to New Zealand consumers of a FTA in terms of enhanced income). The preferred welfare indicator is “real consumption” – the aggregated quantity of goods and services that the household can consume given current and future income flows. Changes in real GDP reflect only changes in the overall level of economic activity and not changes in net national income or welfare.