NZIBF acknowledges the passage of the implementing legislation for the New Zealand/European Union Free Trade Agreement and looks forward to the FTA’s entry into force on 1 May.
Time to focus on Europe! Dominion Post – February 2010 By Stephen Jacobi
The recent NZ/EU Trade Conference in Auckland was a timely reminder that the 27 member states that comprise the European Union are of fundamental and abiding economic and political importance to New Zealand.
While much attention continues to be focused, quite rightly, on Asia, the EU and New Zealand are likeminded partners closely linked by heritage and common values. Over time the relationship has been transformed as New Zealand has overcome the challenges of British entry into the European Community. The face of Europe has also changed fundamentally with the emergence of today’s increasingly comprehensive political and economic union characterised by free movement of people, capital, goods and services.
The EU is now a single market of around 500 million people. The EU is one of the heavyweights of the global economy – the world’s largest exporter, importer, investment source and destination. The EU is also a key player in many international issues of interest to us including trade, security, climate change and sustainable development.
The EU is New Zealand’s second largest market after Australia, taking around 18 percent of exports and imports. The EU is our largest, highest value and in many cases fastest growing market for key export products like butter, lamb, apples, kiwifruit, seafood and wine. The EU is an important source of inward investment, technology, immigration and tourism.
At this week’s Trade Conference Jade Software and Navman Wireless outlined their success in highly competitive and sophisticated European markets. From a European perspective Siemens spoke of opportunities in New Zealand including supplying turbines for the Makara wind farm.
For much of the second half of last century New Zealand’s relations with Europe were dominated by difficult annual negotiations over lamb and dairy access. The Uruguay Round agreements put this access on a more permanent basis, ending the annual pilgrimage of Ministers to Europe but also the less frequent visits of European Commissioners to New Zealand.
Today there is some risk that New Zealand might be perceived as marginal player in terms of European interests particularly as New Zealand ranks only around 50th in EU external trade.
At the Trade Conference, EU senior official Mauro Petriccione was decidedly frank in saying that if New Zealand 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.
The fact is that the EU and New Zealand have been looking in different directions for much of the last thirty years. As a consequence of Britain’s entry into the European Economic Community in 1973 New Zealand deliberately sought to develop economic relationships closer to home. In Europe meanwhile the ongoing enlargement of membership has seen a range of new players emerge within Europe: our relations with some of them are decidedly thin.
More recently the EU has negotiated a series of free trade agreements in the Asia Pacific region including with Chile and Korea. Agreements with Canada and India are under negotiation. These developments have implications for New Zealand: they could result in greater competition for New Zealand in EU markets and greater competition in those markets we are ourselves keen to develop.
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.
In today’s environment it would be a mistake to think of Europe solely as a competitor. 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.
It is sometimes said that New Zealand has all the qualifications for entry into the EU except the geography. In recent years our geography has helped focus attention on own region. But if we have learned one thing from our economic history it is that we must have a diversified trade strategy. Paradoxically since all that has happened in the last thirty years, that’s why Europe remains important to us.
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
NZ/EU FTA A BONUS FOR SOME SECTORS – BUSINESS FORUM
Media release, 22 March 2024 The NZ International Business Forum (NZIBF) acknowledges the passage of the implementing legislation for the New Zealand/European Union Free Trade Agreement and looks forward to the FTA’s entry into force on 1 May. “This agreement was...
“MEAGRE OUTCOME” FROM WTO IN ABU DHABI – BUSINESS FORUM
Media release, 2 March 2024 Despite its overwhelming importance at the heart of the international trade system, members of the World Trade Organisation (WTO) have concluded their Ministerial in Abu Dhabi (“MC13”) with only a meagre outcome. NZ International Business...
To go or woe with the WTO?
We’ve been here before with the World Trade Organisation (WTO). The global trade body’s 13th Ministerial meeting (“MC13”) opens in Abu Dhabi on Monday 26 February, with Trade Minister McClay serving as Vice-Chair. In recent weeks diplomats, trade...
DCANZ – Agricultural Subsidy Distortions Must Be Addressed
23 February 2024 - Media Release by the Dairy Companies Association of New Zealand (DCANZ) As the world’s Trade Ministers head to a WTO meeting in Abu Dhabi, the Dairy Companies Association of New Zealand (DCANZ) is calling for an immediate capping of agricultural...
Asia-Pacific business leaders call for greater economic dynamism with people at the center of the APEC agenda
16 February 2024 - APEC NEWS RELEASE Issued by The APEC Business Advisory Council (ABAC) The APEC Business Advisory Council (ABAC), meeting this week in Kuala Lumpur, Malaysia, expressed deep concerns about the growing pressures of economic fragmentation and the risks...
SUBMISSION TO THE PARLIAMENTARY FOREIGN AFFAIRS, DEFENCE AND TRADE COMMITTEE – FEBRUARY 2024
NEW ZEALAND EUROPEAN UNION FREE TRADE AGREEMENT LEGISLATION AMENDMENT BILL Introduction and Summary This submission is made on behalf of the New Zealand International Business Forum (NZIBF) and Export NZ. NZIBF is a forum of senior business leaders working...
ABAC Statement on WTO MC13 – February 2024
Now, more than ever, the world needs a credible, relevant, and effective multilateral trading system, with the World Trade Organization (WTO) at its core. In this era of global challenges, the APEC Business Advisory Council (ABAC) recognizes that the WTO is...
Global Industry Statement on the WTO Moratorium on Customs Duties on Electronic Transmissions
NZIBF has joined 170 international business associations in calling for an extension to the current moratorium on tariffs applying to digital services (like Netflix) at the forthcoming WTO Ministerial meeting. The undersigned associations urge WTO members to support...
Resilient supply chains: Yesterday, today and tomorrow
Published by the Hinrich Foundation, Singapore, 23 August 2024 By Stephen Jacobi History has much to teach us about the way trade contributes to prosperity through the movement of goods, services, people, and ideas. Today, data can be added to this web of...
SUBMISSION TO THE MINISTRY OF FOREIGN AFFAIRS AND TRADE
GENERAL REVIEW OF THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS- PACIFIC PARTNERSHIP (CPTPP) DECEMBER 2023 Summary This submission is made on behalf of the New Zealand International Business Forum (NZIBF). As individual NZIBF Members may make their own...
Todd McClay – your trade mission, should you choose to accept it …
As published by Newsroom 19 December 2023 By Stephen Jacobi “Twas the week before Christmas, When all through the house Not a creature was stirring, Except busy trade officials … ‘Tis the season to be “BiM-ing”* and the NZ International Business Forum has sent its...
2023 – Steps forward and back
Trade liberalisation moved forward and backward in 2023. Some notable gains have been achieved for New Zealand, but war, geo-political rivalry and global inflation continue to depress global markets. While the pandemic continued to lurk in the shadows, 2023 was the...
NZIBF releases Brief to the Incoming Minister of Trade
DECEMBER 2023...
NZIBF 2023 Chair Report
I am pleased to present my third report on the activities and achievements of the NZ International Business Forum (NZIBF) for 2023-24, our sixteenth year of operations. I am grateful to all Members and to our executive team for your continuing support. As I...
Of APEC, CPTPP and IPEF
While New Zealand was sorting out its new Government, the alphabet soup which is trade got a good stirring in San Francisco. This was APEC Leaders’ week, the annual gathering of Leaders, Ministers, business people and other stakeholders from the 21 economies of...