The Free Trade Area of the Asia Pacific (FTAAP) remains the preeminent economic priority for the Asia-Pacific business community.
Europe Day 2010 – time for new engagement with the EU National Business Review – 7 May 2010 By Stephen Jacobi [1]

9 May is Europe Day and a good time to reflect on the continuing political and economic importance of the European Union and its 27 members to New Zealand.
Europe has sometimes got a rather bad press in New Zealand over the last 40 years as we have sought to diversify our trade away from Britain to new markets in Asia. For much of that time too we argued about agriculture. Thankfully New Zealand’s critical access for butter and lamb was secured once and for all by the Uruguay Round (thank you WTO). The Europeans have also embarked on a serious and continuing reform of the Common Agricultural Policy and a final conclusion to the Doha negotiations, if one could ever be achieved, would put an end to export subsidies.
The trouble with old perceptions is that they risk blinding us to new opportunities. The EU is one of the heavyweights of the global economy – the world’s largest importer, exporter, investment source and destination. The Union is a single market of 500 million people enjoying the free movement of labour, capital, goods and services.
What’s more the EU is New Zealand’s second largest market after Australia, taking around 18 percent of exports and imports The EU is an important source of inward investment, technology, immigration and tourism. While our trade is underpinned by exports of lamb, apples, kiwifruit, butter, seafood and wine, a range of niche products and technological applications find ready markets in Europe – ask Jade Software or Navman. And the traffic is not all one way. European suppliers of high value manufactured products and technology are doing good business here – like the French company Thales supplying an integrated transport ticketing system for Auckland or German company Siemens supplying wind turbines in Wellington.
While we may have been looking in different directions for much of the last four decades, that too is changing. The EU has negotiated a series of FTAs in the Asia Pacific region, starting with Chile and Korea and soon to include India and Canada. New Zealand has now proposed a comprehensive bilateral agreement as a new framework for the relationship. The proposed agreement is much broader than an FTA but has some useful provisions on trade facilitation and economic co-operation that would be helpful for business. The President of the EU Commission, Jose-Manuel Barroso, has said that he envisages “a broad and comprehensive agreement encompassing common values.”
Why not then an FTA with Europe ? That’s not currently on the cards. At the NZ/EU Trade Conference held in Auckland in February this year, EU senior official Mauro Petriccione said that if New Zealand really wanted a free trade agreement then the business case would have to be made to stakeholders in Europe of why this would be of benefit to them.
Short of an FTA there is a lot we can do to bring the relationship up to date and to develop contacts with newer members of the Union, especially those in Eastern Europe. Poland for example has recently opened an Embassy in New Zealand and we have done so in Warsaw. We need to put the effort in to build on the bridgehead established by these diplomatic missions.
Business has a role to play in purposefully building the business case for an expanded relationship as we have done successfully with the United States, Japan and Korea. Later this year a high level delegation of business leaders organised by the NZ International Business Forum will visit Brussels and other EU capitals to develop some new strategic engagement with European counterparts.
On 9 May 1950 Robert Schuman presented a proposal for the peaceful re-organisation of Europe. A considerable distance has been travelled since then. New Zealand’s own relations with Europe have shifted significantly as the face of Europe has changed. It’s time now to refocus on Europe even as we continue to develop our Asian strategy.
[1] Stephen Jacobi is Executive Director of the NZ International Business Forum
REGISTER WITH TRADE WORKS
Register to stay up to date with latest news, as well as saving and discussing articles you’re interested in.
Latest News
Remarks by Rachel Taulelei to APEC Ministers Responsible for Trade, 21 May 2022
ABAC NEW ZEALAND REMARKS TO ABAC-MINISTERS RESPONSIBLE FOR TRADE DIALOGUE 21 MAY 2022 RACHEL TAULELEI ABAC NZ Chair, Ministers The Free Trade Area of the Asia Pacific (FTAAP) remains the preeminent economic priority for the Asia-Pacific business community. It...
Deepening ECONOMIC INTEGRATION and EQUIPPING BUSINESS FOR DYNAMIC, INCLUSIVE and SUSTAINABLE GROWTH ARE KEY to ECONOMIC RECOVERY, say business leaders
Vancouver, 28 April 2022 –Asia-Pacific business leaders in the APEC Business Advisory Council (ABAC), meeting this week in Vancouver, affirmed their determination to continue to work closely together to respond to the challenge of sustaining the region’s growth...
FROM APEC AND CPTPP TO IPEF – SMALL STEP OR GIANT LEAP?
The US idea of an Indo Pacific Framework (IPEF) continues to gain traction but is not without complication. Aotearoa-New Zealand is a great joiner - from the very beginning of the United Nations to the important economic institutions like the WTO, APEC, CPTPP and...
Remarks to Foreign Affairs, Defence and Trade Committee
NZ INTERNATIONAL BUSINESS FORUM REMARKS TO THE FOREIGN AFFAIRS, DEFENCE AND TRADE COMMITTEE INTERNATIONAL TREATY EXAMINATION OF THE NZ/UK FREE TRADE AGREEMENT 17 MARCH 2022 STEPHEN JACOBI EXECUTIVE DIRECTOR Madam Chair, Members of the Committee Thank you for the...
Submission to the Parliamentary Foreign Affairs, Defence and Trade Committee
INTERNATIONAL TREATY EXAMINATION OF THENEW ZEALAND UNITED KINGDOM FREE TRADE AGREEMENT MARCH 2022 Introduction and Summary 1. This submission is made on behalf of the New Zealand International Business Forum (NZIBF) whose members are listed at Annex A 1 . NZIBF is a...
BUSINESS FORUM COMMENDS RUSSIA SANCTIONS LEGISLATION
The NZ International Business Forum (NZIBF) has commended Parliament’s bipartisan Russia Sanctions legislation, targeting those involved in the invasion of Ukraine. “Tough times call for tough measures and this legislation is an appropriate response from New Zealand...
Remarks made by ABAC New Zealand Chair Rachel Taulelei to GS1 Retail Plenary, 25 February 2022
APEC BUSINESS ADVISORY COUNCIL ADDRESS TO GS1 RETAIL PLENARY25 FEBRUARY 2022 RACHEL TAULELEIABAC NZ HOW IDENTIFICATION AND TRUST ARE NEEDED TO ENABLE CROSS-BORDER TRADE E ngā mana, e ngā reo, rau rangatira mā, tēnā koutou katoa. It is a pleasure to be taking...
NZ/EU FTA – BLESSED BE THE CHEESEMAKERS
Will the NZ/EU FTA ever be finished, asks Stephen Jacobi. In the Monty Python film, “Life of Brian”, Jesus’ Sermon on the Mount is poorly heard by some of the crowd, but the message is passed on: “Blessed be the cheese makers”. Two thousand years later cheesemakers...
BUSINESS FORUM APPLAUDS “HISTORIC” NZ UK FTA
The conclusion of the NZ UK Free Trade Agreement is a historic moment for NZ’s trade, says the NZ International Business Forum. “This new free trade agreement, negotiated and concluded in record time, delivers unprecedented access to the UK market and sets the stage...
ABAC I Media Release
APEC NEWS RELEASE Issued byThe APEC Business Advisory Council (ABAC) Embracing challenges, engaging collectively and enabling opportunities are key to Asia-Pacific success, say business leaders Singapore, 18 February 2022 – Asia-Pacific business leaders in the APEC...
GUEST POST: “Imagine if… Building a new future for Indigenous trade”
Indigenous business leaders from the APEC region contributed to the first-ever ABAC Indigenous Dialogue in July 2021. Carrie Stoddart-Smith imagines the wealth and well being Indigenous peoples could bring to international trade, if the opportunity is seized....
NZIBF 2021 Chair Report
The NZIBF Board meets with Indian High Commissioner H E Muktesh Paredeshi at its last meeting for 2021.ANNUAL GENERAL MEETING 15 DECEMBER 2021 CHAIR’S REPORT I am pleased to present my first report on the activities and achievements of the NZ International Business...
Let’s try that again: Happy new year!
In another year of disruption and loss there have been some surprising wins for trade. The kindest thing that could be said about 2021 is that things didn’t quite work out as planned. We did not defeat the pandemic and lives and livelihoods continued to be lost....
A little breathing room at the WTO
A little breathing room at the WTO The emergence of Omicron has meant that the WTO Ministerial Conference has been put on hold – leaving in limbo key decisions about pandemic trade responses and fish subsidies (not to mention agriculture). But there is some good...
An Open Letter to Trade Minister O’Connor
22 November 2021 Hon Damien O’ConnorMinister of Trade and Export GrowthWELLINGTON Dear Minister As you and your colleagues prepare to gather in Geneva, we write this open letter to express the strong support of the New Zealand business community for ambitious...
0 Comments