7 Nov 2017  -  The first big test for the Government will be to get TPP over the line with New Zealand on board writes Catherine Beard in today's NZHerald. Why does this matter? Because free trade agreements translate into new income and jobs, and if the new Government wants to spend more we need to earn more. Every additional $1 billion in exports equates to 8500 new jobs.

Continue here to read the full article  ||  November 7,  2017   |||

New Zealand Ambassador to the Philippines David Strachan expects stronger ties between his country and Cebu as the two parties further explore opportunities in trade, tourism and education.

At a time when the people-to-people links between New Zealand and the Philippines are burgeoning, Strachan led an 11-strong New Zealand delegation to Cebu to look into potential areas of collaboration.

“We continue to strengthen our ties and explore partnerships that would be beneficial for Cebu and New Zealand,” he said in a roundtable discussion with local media at the Cebu City Marriott Hotel last Friday.

According to Strachan, 80 percent of New Zealand exporters are small and medium enterprises who could be the right match for Cebu-based entrepreneurs.

He said New Zealand is exploring potential investments on food and beverage, wood processing and furniture as well as information technology innovations.

Investments

Hernando Banal, the New Zealand trade commissioner, said they see a sustained entry of investments particularly into the business process outsourcing (BPO) industry.

Aside from the BPO sector, he said New Zealand is also looking for collaborative projects in renewable energy, especially since the country is known for geothermal power sources.

Banal said the bilateral trade of the Philippines and New Zealand has been growing, registering $1 billion in trade value in the last five years, making the Philippines the 15th largest export destination for New Zealand.

He added that Philippine companies are also investing in firms in New Zealand, particularly those involved in food and food processing.

New Zealand boasts of a large Filipino community, with more than one percent or about 6,000 of the country’s population being Filipinos and making it the fastest growing Asian community there.

Tourism

Steven Dixon, Tourism New Zealand regional manager, meanwhile, said more Filipinos now see New Zealand as a travel destination.

They expect more Filipinos to travel to New Zealand as Philippines Airlines is set to launch a non-stop service between Manila and Auckland starting December.

“This decision by PAL would inject greater momentum into the fast growing two-way tourist flows,” he said.

Around 28,000 New Zealanders travel from New Zealand to the Philippines while 23,000 Filipinos travel to New Zealand every year, mostly for business, incentives, as well as visiting family and friends.

Education

Education New Zealand Regional Director John Laxon, for his part, said Cebu is becoming a promising education market for New Zealand.

He said that more than 1,000 students have registered for the New Zealand Education Fair hosted by Golden Summit Immigration Consultancy held at the Cebu City Marriott Hotel last Oct. 7.

“Filipinos pursuing their education in New Zealand are learning from some of the best education institutions in the world. They earn degrees that are internationally recognized. This gives them an advantage in pursuing their careers in the Philippines or elsewhere around the world,” Laxon said.

More than 4,000 Filipino students study in New Zealand, making the Philippines the fifth largest sources of international students worldwide.

Year to date, the number of Filipino students choosing to study in New Zealand universities has risen by 35 percent in 2017 compared to the same period last year.

The popular degree programs among Filipinos, Laxon said, are those related to management and commerce as well as health studies, animation, cyber security and ICT.

| A TravelWireNews release  ||  October 8,  2017   |||

The New Zealand Shippers Council is concerned that the recent announcement by Port Napier that it will impose an insurance levy charge on transport operators is the thin end of the wedge for the countrys exporters and importers. The levy came into effect on October 1 and will be passed onto exporters and importers effectively through the back door as added cost in the supply chain.

 Chairman of the NZ Shippers Council, Mike Knowles said it is an alarming precedent.

“What we’re seeing is a levy that lands on those who have no contractual relationship with the port and therefore no ability to influence the outcome.”

“In our view ports should either be absorbing those increased costs as part of normal business activity, or negotiating them with their commercial clients – the shipping lines; not imposing them on parties who have no ability to review and negotiate rates,” said Mr Knowles.

Mr Knowles said the Shippers Council appreciates that the dramatic increase in insurance premiums in the wake of the Kaikoura earthquake places considerable pressure on providers of supply chain infrastructure. “However, applying a levy on parties who do not have a commercial relationship with the port is not the way forward. We are extremely concerned that this precedent may be adopted by other ports and will strongly oppose any move in that direction.”

The New Zealand Shippers’ Council represents the supply chain interests of major New Zealand shippers, with members across all sectors including importers, exporters, ports, freight forwarders, road and rail. Collectively members move over 60% of NZ containerised exports and a significant amount of bulk exports, imports and domestic volume.

| A NZ Shipping Council release  ||  October 2,  2017   |||

The New Zealand economy continued to grow solidly in the June quarter, posting a 0.8 per cent increase in GDP, taking New Zealand's growth rate for the year to 2.7 per cent, Finance Minister Steven Joyce says.

“Our economy continues to outperform many developed nations, underpinned by strong export and domestic demand,” Mr Joyce says. “It is still a challenging international environment, which is why we need to continue with an economic plan that is working for New Zealand.”

New Zealand’s growth over the last year has exceeded that of Australia, the United Kingdom, the USA, the Euro area, Japan, and the average across the whole OECD.

Growth in the quarter was across 11 of 16 industries, including:

• Retail, trade and accommodation (up 2.8 per cent)
• Manufacturing activity (up 1.8 per cent)
• Business services (up 1.1 per cent)
• Transport, postal and warehousing activity (up 3.5 per cent)

Exports rose 5.2 per cent, with exports of goods posting its biggest quarterly increase in 20 years. Overall growth in the quarter was partially offset by the construction sector, which contracted 1.1 per cent in the quarter but up 6.4 per cent from June 2016.

Today’s GDP figures followed on from the release of New Zealand's external accounts yesterday, which showed a current account deficit of 2.8 per cent for the June year.

"This week’s economic growth statistics show that the Government’s consistent economic plan is encouraging businesses to invest and grow more jobs for New Zealanders. It is important to maintain and support business confidence if we are to continue our progress in the years ahead."

| A Beehive release  ||  September 21,  2017   |||

Trade Minister Todd McClay says a trade agreement with Mexico, Chile, Colombia and Peru could be worth 10,000 jobs to provincial New Zealand and will give Kiwis unprecedented access to fast-growing Latin American markets.

This comes as Mr McClay calls for public submissions on FTA negotiations with the Pacific Alliance countries.

“Mexico, Chile, Colombia and Peru combined have 221 million consumers and a GDP of US$3.85 trillion, which is equivalent to the world’s sixth largest economy,” Mr McClay says.

“This is an important market for us now, and we want the public and the business community to consider how they might take advantage of the increased opportunities for both trade and investment that will result from an FTA.”

Mr McClay says increasing trade and business links with the Pacific Alliance will also advance the prospect of New Zealand serving as a trading bridge between South America and Southeast Asia.

“The Government will be pushing hard for a high-quality agreement. It’s important we hear from New Zealanders about what they would like to see prioritised and progressed during negotiations, Mr McClay says”

Mr McClay says negotiations with the Pacific Alliance will begin in the coming months and are expected to progress swiftly. Public submissions are due by October 16.

For more information on how to make a submission, visit: https://mfat.govt.nz/en/trade/free-trade-agreements/agreements-under-negotiation/pacificalliance

| A Beehive release  || September 18, 2017   |||

FreshPlaza - Sep 13, 2017  |  What is expected to be the first of many shipments of tamarillo pulp has left Whangarei en route to a US-based food producer and distributor.

NZ Tamarillo Co-operative recently finalised a major deal with its produce destined to join Serious Foodie's product line as New Zealand Tamarillo Grill Sauce & Marinade and New Zealand Tamarillo Vinegar.

Serious Foodie sells online, through farmers' markets and is distributed into gourmet supermarkets and stores across the US and Canada.

More shipments will follow with the pulp from tamarillos grown in the North by the five orchards in the NZ Tamarillo Co-operative processed into pulp and vinegar concentrate here and then sent to the US in bulk.

Maungatapere based co-operative director/manager Robin Nitschke said he and other members of the Tamarillo Co-operative had been working on the deal for two and a half years and are delighted to have reached another milestone.

The co-operative was established three years ago to have more influence at the beginning of the supply chain by channelling all fruit through one merchant and to provide more choices to add value to the fruit at the end of the supply chain.

"So it is rewarding to finally achieve this milestone," Mr Nitschke said. "The importer tells me that feedback on our tamarillo products from customers in the States is very encouraging, with the potential for rapid growth into the specialty food sector".

Mr Nitschke said that after gaining recognition last year as finalists in the Artisan Food Awards, supermarkets, specialty food outlets and food service companies have been stocking the co-operative's products.

| A FreshPlaza release  || September 13,  2017   |||

 With technology being predicted to become New Zealand's number one exporting sector, the time has come to set out the vision. CEO of the Centre for Advanced Engineering and author of the recently released book Innovate! Richard Bentley shares his thoughts on how we can speed up the process with Idealog.

Professor Shaun Hendy (9 August) commented on the slow progress New Zealand has made toward the development of a technology-based exporting sector. As he reflected, the occasional successful start-up is not nearly enough.

In my recent book Innovate! , I present a detailed analysis of the state of our fifteen export-focused sectors, their prospects for growth, current thinking on being innovative and how our government supports exporters.

I find that amongst our advanced manufacturing sector we have a number of sophisticated exporters like Buckley Systems and Fisher and Paykel Healthcare, and that there is an emerging group of exciting businesses. However, the new paradigm amongst wealthy nations is to be preeminent in advanced manufacturing - as manufacturing especially has extensive spillovers to the wider economy. As a consequence, new manufacturing technologies and processes are appearing, markets are becoming more competitive, and large multinational companies are adapting their businesses to tackle the very niche markets that our companies supply.

We also have exciting but unrealised opportunities in medical technologies, ICT, textiles, and in minerals developments, but our manufactured food, agritechnology and biotechnology sectors are fragmented and underperform. Thus our emerging technology-based economy has the feel of still being in start – up mode, and this seems to be reflected in recent data that shows exports as a percentage of GDP slowly falling, why the government’s often stated goal of doubling exports has been quietly dropped, and why our productivity remains so low.

So how do we address this challenge? The wealthy countries of the OECD are proactive in developing innovative, competitive and growing technology-based economies. They create environments where businesses grow through easy access to science and technology, where businesses work together and collaborate as opportunities emerge, and where resources are focused on science and technology development and transfer that’s good for business development.

In contrast, and since the 1980’s deregulation of our economy, our governments have adopted a passive approach to developing an innovative economy and to the development of business. This is why we have very poor interactions between business and researchers, and very few business facing centres of technology. This dysfunctionality, which I call the technology vacuum, was first revealed in the authoritative report Powering Innovation way back in 2011, as Shaun noted, and there has been no attempts to remedy the situation. Compounding the situation has been the collapse of the manufacturing - focused CRI Industrial Research Limited from low sales.

Paradoxically, we have a superb science system, led by the universities and the Centres of Research Excellence (the CoREs), and we have numerous world class scientists. However, nearly all the science research vote continues to be allocated to university scientists on the basis of best science and not to research needs informed by business.

Government, having stripped itself of all its technology capability, needs to form a new Innovation Council comprising the universities, business and NZTE, to look into the situation in each of our fifteen important export sectors and to work out how government could assist them better. Each has its own issues and opportunities. These initiatives will give businesses better access to the science and technology capability in our universities, they will create environments that encourage more coordination, collaboration and innovation between export businesses, and they will deliver OECD type energised innovative environments.

My preference, set out in detail in Innovate!, is to create a network of university-based technology hubs, effectively a technology – focused business facing version of the CoRE network. They would be wholly funded by government and established for example in robotics and sensing, IT for manufacturing, cyber technologies, technical textiles, agritechnology, and advanced food, to name only a few areas to illustrate. These are the technologies that underpin the development of a competitive exporting sector. I would scrap the R&D grant system as it does not create innovative firms or innovative collaborative sectors, and I would put these funds into the network. The hubs would also become the place where businesses within sectors meet, collaborate, agree sector strategies and inform research needs as occurs at the Auckland University - hosted Product Accelerator. And I would collapse the economically focussed CRIs and Callaghan Innovation into this network.

Governments create innovative economies not markets. A step change in effort by our government is required to bring Sir Paul Callaghan’s dream of a sophisticated significant technology-based export sector to a reality and to reduce our dependence on commodity agriculture exports and tourism.

Richard Bentley (CNZM) has worked in New Zealand industry and in the science and innovation system for nearly four decades – see his website. Innovate! Transforming New Zealand’s technology-based economy was published in August 2017 by Steele Roberts, Wellington.

| An IDEALOG article   |  September 13,  2017   |||

Trade Minister Todd McClay says he expects the NZ-European Union Free Trade Agreement to be formally launched later this year after the European Commission and New Zealand both finalised their respective negotiating mandates.

“It’s extremely important the European Commission and New Zealand have completed this next step,” Mr McClay says.

“European Commission President Jean-Claude Juncker also announced tonight in his ‘State of the Union’ address that he is seeking approval to launch negotiations and aims to conclude the NZ-EU FTA by late 2019.”

“An FTA will give New Zealand companies an opportunity to significantly increase trade with the EU.”

“Two-way trade with the EU is worth more than $20 billion a year and creates thousands of jobs and opportunities for every region and city of New Zealand.”

Mr McClay says the Bill English-led Government will be pushing for a high-quality, comprehensive FTA.

“More than 8500 jobs are created in New Zealand by every billion dollars of exports,” Mr McClay says.

“That means a deal with the EU that increases trade has the potential to create thousands more jobs for Kiwis.”

The European Commission will now send its negotiating mandate to the European Council. Approval is expected later this year.

| A Beehive release  ||  September 13,  2017   |||

Business and community leaders from across Alabama are traveling in Australia and New Zealand this week, seeking to boost exports and strengthen trade ties in the region.

The 17-member delegation kicked off a series of briefings with U.S. Commercial Service officials in Sydney, as well as appointments with area companies.

Later in the week, the group will travel to Auckland, New Zealand’s primary commercial hub for a similar slate of meetings.

“Alabama has strong, and growing, relationships with both Australia and New Zealand, and we want to build on those bonds,” said Greg Canfield, secretary of the Alabama Department of Commerce, who is leading the delegation.

“This trade mission is about helping our state companies find new markets for their goods and services, so they can create jobs and make new investments in their communities back home,” he said.

Alabama exports to Australia reached nearly $298 million in 2016, rising 11.6 percent from the previous year, according to Commerce Department data. Top exports included transportation equipment as well as paper, chemicals, machinery (except electrical), and computer and electrical products.

Motor vehicles were by far the largest export shipped to Australia in the transportation equipment category.

Meanwhile, state exports to New Zealand last year totaled $68.7 million, jumping 63.6 percent from 2015. Transportation equipment also led the way here, but in a change from previous years, aerospace products and parts, instead of motor vehicles, constituted the largest transportation equipment category.

Other top Alabama exports to New Zealand included chemicals, paper, plastics and rubber parts; and machinery (except electrical).

‘International footprint’

Hilda Lockhart, director of the Department of Commerce’s Office of International Trade, said Australia and Alabama have a strong relationship in both trade and investment. The free trade agreement with Australia allows Alabama companies to be competitive in this far-reaching market, she said.Members of a trade delegation visit Sydney, Australia, in search of more business for Alabama companies. (Made in Alabama)

In addition, New Zealand is a natural fit for Alabama exporters as some distributors cover both countries.

“As our companies say, it only takes one strong partner to do business here,” Lockhart said.

Alabama companies represented in the delegation include Atlas RFID Solutions, Warren Manufacturing and Regions Bank, all of Birmingham; Irrigation Components of Daphne; PowerSouth Energy Cooperative of Andalusia; MechOptix of Madison; Pinnacle Solutions Inc. of Huntsville; and Quality Valve Inc. of Mobile.

Also part of the group are representatives from the University of Alabama, the U.S. Department of Commerce and the Mobile Area Chamber of Commerce.

“This trade mission is comprised of multi-industry companies ranging from automotive, aerospace and high-tech equipment, which are among some of the best industry sectors for both Australia and New Zealand,” Lockhart said. “Both countries are very receptive to U.S.-made products because of quality and service.”

As on all trade missions, the Commerce Department has partnered with the U.S. Department of Commerce Foreign Commercial Service to set up prequalified appointments to identify potential buyers and distributors.

“The companies with us are working to grow their international footprint in new markets, and we feel very positive that they will be successful on this trip in doing so,” Lockhart said.

Strengthening business

Irrigation Components is changing its distribution model and looking for new distributors after many years of operating in Australia and New Zealand, said Ramsay Geha, vice president of international sales and a member of the trade mission delegation.

The company provides irrigation parts for gear boxes, center drives, sprinkler packages and alignment controls, and it is the world’s leader in center pivot spare parts sales. Irrigation Components operates in more than 40 countries, all major agricultural areas.

“Export sales are about 40 percent of our business,” Geha said. “Export was what established our company, and we are seeking to revitalize and strengthen this portion of our business.”

Atlas RFID Solutions sees tremendous opportunity for its business in Australia and New Zealand.

“Despite having worked on very large industrial construction projects in Australia, we have done so on behalf of U.S.-based contractors and have never worked directly with any Australian or New Zealand-based companies,” said Robert Fuqua, the company’s president and CEO. “We believe that having a more established presence in the region will open doors for more opportunities to provide value to local construction contractors.”

Kevin Bube, vice president of client operations, and Ben Whipple, program manager, are representing the company in the trade mission delegation.

“We are always looking for innovative industrial construction companies to whom we can deliver value through our proprietary materials readiness solution, Jovix,” Fuqua continued. “Companies who are prone to technology adoption are prime for our solution, which focuses on increasing craft productivity and schedule adherence through material readiness.”

Presently, Jovix is deployed in four countries, and exports account for more than 65 percent of Atlas RFID’s annual revenue.

“We have previously participated in trade missions to China, Hong Kong, Norway and Sweden. These trips have provided great value by aiding us in learning about the local business ecosystems and allowing us to create lasting relationships within those markets,” Fuqua said.Austal USA launches the future USS Omaha from its shipbuilding facility in Mobile. The Australia-based company is one of south Alabama’s largest employers. (Austal USA)

Trading partners

In addition to business meetings, delegation members also will attend networking receptions hosted by Consul General Valerie Crites Fowler of the U.S. Consulate General in Sydney and Acting Consul General Craig Halbmaier of the U.S. Consulate General in Auckland.

Among the 50 states last year, Alabama was Australia’s No. 2 trading partner in exports of pulp, paper and paperboard mill products and its No. 4 trading partner in motor vehicle exports.

Meanwhile, the state imported $106.5 million of goods from Australia in 2016.

Other key ties between the state and the country include Australian shipbuilder Austal USA, which has a major manufacturing operation in Mobile.

For New Zealand, Alabama ranked as the No. 1 trading partner in exports of pulp, paper and paperboard mill products, and the state was No. 2 for exports of resin, synthetic rubber, artificial and synthetic fibers, and filament.

Alabama’s 2016 imports from New Zealand totaled $10.1 million.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.

| AnAlabamaNews release  ||  September 12,  2017   |||

Trade Minister Todd McClay says the Government has agreed a negotiating mandate to upgrade the China Free Trade Agreement that will deliver thousands of jobs and be worth billions to our economy.

“China is a significant trading partner. Our FTA with China has helped New Zealand companies stay in business during the GFC and keeps Kiwis in jobs,” Mr McClay says.

“We currently have $24 billion of two-way trade with this large economy and impressive growth in education, tourism and goods exports.”

“Trade means jobs - we know 8500 jobs are created in New Zealand from every billion dollars of exports.”

“Upgrading the China FTA will increase trade and deliver more jobs in every region and every city of the country."

Mr McClay says the upgrade priorities for the Bill English-led Government include a better deal for dairy, forestry and wood processing exporters, new rules to enhance online and digital trade and better measures to deal with non-tariff barriers.

"We want to free up access and continue to level the playing field for kiwi exporters," Mr McClay says.

“We have set a joint target of $30b of two-way trade with China by 2020.”

“The upgrade will make it easier for us to hit this significant target. We are committed to delivering for New Zealanders.”

The adoption of this mandate follows MFAT-led consultation and engagement with the public and business. MFAT continues to welcome feedback on the China FTA upgrade via its website.

|  A Beehive release  ||  September 7,  2017   |||