NZIBF 2024 Chair Report

I am pleased to present my fourth report on the activities and achievements of the NZ International Business Forum (NZIBF) for 2023-24, our 17^th year of operations.  I am grateful to all Board and associate Members for your continuing commitment and support.

This past year has seen a very difficult and challenging environment for trade as the global economy struggles to emerge from a post-pandemic downturn and protectionism continues to advance.  As I write, the outcome of the US Presidential election brings new uncertainty in a critically important market for New Zealand. If only we had the FTA many of us worked so hard to achieve some years ago!  At home in New Zealand the economy has struggled under high inflation which appears at last to have been tamed.  Our new Government has largely continued with a bipartisan approach to trade and we commend Trade Minister McClay in particular for his energy, commitment and willingness to engage with us (including on his very first day in office!). The visit of the Chinese Premier to New Zealand in May was the occasion to announce negotiations for a negative list for services under our long-standing FTA as well as to draw attention to the importance of the relationship which is coming under increasing attention. The year finishes with good news from the Gulf as a high quality agreement with the United Arab Emirates (UAE) and a long sought after FTA with the Gulf Co-operation Council (GCC) have been concluded.  These agreements show progress on freer trade is still possible where the political will exists. 

In the past year we have continued to support the Government’s effort to expand relations with India as an essential first step towards a future FTA.  We also supported at the Parliamentary Select Committee the ratification of the Indo Pacific Economic Agreement (IPEF): although IPEF does not address market access concerns, it has been seen as a means to maintain engagement with the United States as well as to promote supply chain resilience.  IPEF’s future is now uncertain as a second Trump Administration prepares to take office.  We welcome also the United Kingdom’s accession to CPTPP after a protracted period and urge CPTPP members to conclude the scheduled review of the Agreement and pick up the pace with the six other accession requests, including China, Chinese Taipei and Indonesia.

The Board has been pleased to welcome the attention being placed by officials on paperless trade.  We see that removing the vast amount of paper that accompanies goods as they move through supply chains could make significant contribution to reducing transaction costs, promoting product security and integrity and realising the Government’s objective to double export value in ten years.  Earlier in the year we presented a comprehensive set of recommendations to Ministers  and continue to advocate for whole of Government leadership.  We developed another set of recommendations on the interface between trade and sustainability and continue to monitor the significant increase in environmental regulations which have the capacity to impact on trade if not carefully considered and implemented. 

Since its inception we have supported the important work of the NZ China Council, where we have three Board appointments.  We have continued to assist the Council as it develops its Southern Link project – a bold vision to build a new supply chain across New Zealand from Asia to Latin America, which needs greater advocacy by the Government.

For the past 15 years NZIBF has provided high quality policy advice and support to the NZ Members of the APEC Business Advisory Council (ABAC) – currently Rachel Taulelei, Anna Curzon and Brett O’Riley.  This role will come to an end in December 2024 as NZIBF focuses on other priorities. We thank the ABAC Members for their work, and Stephen Jacobi as Alternate Member of ABAC and Stephanie Honey as Lead Staffer for their commitment to developing ABAC’s work programme in a way that reflects NZIBF’s core interests in the trade area. 

Our own policy and advocacy work is supported by an active media and public communications programme. Our Executive Director comments regularly to the media and is frequently invited to address major conferences. Our  Trade Works website and social media channels are a rich source of information, in written and video format, on New Zealand’s global trade interests and our own activities.  

The NZIBF Board met four times last year and continued the past practice of meeting with Ministers, senior officials and diplomatic representatives.  We extend our thanks and best wishes to those who left us during the year: long-serving members Sam McIvor (Beef +Lamb NZ) and Kirk Hope (BusinessNZ), as well as A J Smith (TradeWindow). We have been pleased to welcome Karen Morrish (NZ Apples and Pears) as a new Board member. We thank all our associate members, who join our meetings twice a year, for their support.  As always the Board recognises and values the professionalism and expertise of our NZIBF team Stephen Jacobi (Executive Director), Stephanie Honey (Lead Staffer, ABAC), Glen Candy (Project Manager) and Christine Connon (Executive Assistant).  Our finances are well managed by the team at Business Central. We value our co-operation with government agencies, especially MFAT and MPI.

The global trading environment is about to enter a period of new uncertainty where some of our long standing assumptions about trade policy based on multilateral rules may well be up-ended.  The World Trade Organisation (WTO) remains in a precarious state.  Geo-political differences may expand further as the world deals with serious conflict in both Europe and the Middle East and rising tensions in the Asia Pacific. New leadership in the United States is already articulating a different approach to trade and international engagement.  New Zealand will need to be vigilant and nimble as we respond to these challenges.  NZIBF provides an important meeting place for leaders from major export sectors and key business associations to discuss the evolving situation and collective business responses.  We expect our role to be no less relevant and challenging in the year ahead.

Philip Gregan, Chair NZIBF