Trade Minister Todd McClay, in China this week, says he’s optimistic about New Zealand’s chances of expanding its exports there, despite its debt-ridden property and government sectors.
He pointed to the forecast of 4.5 percent economic growth this year and next for the Asian nation.
“For many countries in the world, that is something they would like,” Mr. McClay said.
“Growing our trade relationships and exports will boost New Zealand’s economy, and it is only through a strong economy we can lift incomes, reduce the cost of living, and afford the public services Kiwis deserve.”
This will be the government’s first trip to China this term. It is the biggest market for New Zealand, taking 22 percent of its goods and services exports in 2023.
Mr. McClay also expressed interest in discussing the revival of the Southern Link plan, a proposal to place New Zealand at the centre of a trade route between Asia and South America, capitalising on New Zealand’s geographical position between the two continents to make it a “staging post” for trade.
FTA has Quadrupled Trade
The NZ-China Free Trade Agreement (FTA) came into effect in 2008, and since then exports have quadrupled.It was refined in 2022 to cover subsequent developments such as e-commerce and government procurement rules. The two governments have already decided on a move to free up trade in services.
Mr. McClay said there was still further work to do on economic relations between the two countries, despite those developments.
“An FTA is nothing more than a framework of rules that people can rely upon and within it, they actually have to sell [their goods and services to customers].”
Mr. McClay’s trip will take him to Beijing, where he will meet Minister of Commerce Wang Wentao, Minister of Agriculture and Rural Affairs Tang Renjian, and forestry administrator Guan Zhi’ou.
He will also visit Shanghai to meet with New Zealand businesses covering food and beverage, health and nutrition, services and logistics, and finally, go to Harbin in Heilongjiang province, a significant agricultural base in China.
“Harbin is home to collaborative partners for New Zealand’s meat exports and potentially other agricultural sectors, which could open up opportunities for our businesses,” Mr. McClay said.
His trip will largely coincide with a journey to Singapore, Thailand, and the Philippines by Prime Minister Christopher Luxon, who will be accompanied by Minister of Climate Change and Revenue Simon Watts, and New Zealand’s first MP of Filipino origin, Paulo Garcia.
“This government has set the ambitious target of doubling New Zealand’s exports by value within 10 years. At the heart of doubling our exports are strong relationships with all our trading partners,” Mr. McClay said.
