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Trade Minister Todd McClay has welcomed the release of two studies which shed new light on the cost and impact of unnecessary red tape and arbitrary trade rules on New Zealand’s exports.
“Technically referred to as non-tariff barriers, these unfair obstacles are costing New Zealand businesses US$5.9 billion every year,” says Mr McClay.
This is according to a report released this week by the New Zealand Institute of Economic Research. The research was commissioned by the Ministry of Foreign and Trade as a contribution to Asia Pacific Economic Cooperation (APEC) work on this issue.
In parallel to this, the APEC Business Advisory Council has released a new study showing that, due to non-tariff barriers, food trade is more difficult and expensive than it should be, undermining goals of food security in the Asia Pacific region.
“Non-tariff barriers to trade are a pervasive, costly issue for our exporting businesses. As the studies show, even as our growing network of trade agreements has reduced the costs for our exports, there has been a significant rise in the number of non-tariff barriers that exporters face,” says Mr McClay.
“These new studies underline the importance of the Government’s efforts to address non-tariff barriers, to ensure that New Zealand businesses can compete on a level playing field overseas.
“Addressing non-tariff barriers has always been a significant part of our export-focused work. It is core work for a range of government agencies.
“A cross agency group has been set up under the Government’s Business Growth Agenda to get to grips with the impact that non-tariff barriers are having on our exporters and what we can do to get rid of them. New Zealand Trade and Enterprise is encouraging its export customers to come forward with market access issues they may be encountering.
“Reducing the impact of non-tariff barriers on New Zealand business has also been highlighted as one of the key issues under the Government’s refreshed trade policy strategy.”
Mr McClay, who was recently in Lima for the annual APEC Summit, welcomed the role that APEC has been playing in highlighting the issues posed by non-tariff barriers.
“I am pleased to see APEC taking a leadership role on this issue. New Zealand has been a big driver of this work and we will continue to make a strong contribution to APEC’s efforts in this area,” says Mr McClay.
Links:
http://nzier.org.nz/static/media/filer_public/51/5f/515f28b2-4c78-41f3-a...
http://www.apec.org/Press/News-Releases/2016/1117_ABAC.aspx
TEHRAN, Nov. 29 (MNA) – Iran's Ambassador to New Zealand Jalalelddin Namini Mianeji on Tuesday announced that the two countries enjoy growing economic and political relations.
He said New Zealand’s Trade Minister Todd McClay, heading a private sector economic delegation, will travel to Europe and Iran over the next week to take part in a number of trade-related events.
His team will hold talks and meetings with Iranian officials on examining ways to develop and deepen bilateral economic relations in post-JCPOA era.
"This is the first high-ranking economic delegation of New Zealand that enters Iran during post-sanctions era," Namini underlined.
Iran's ambassador to New Zealand stressed that the two countries had good cooperation in industrial and technology fields in the past, including the renewable energy.
He also pointed to the visit of Iranian Foreign Minister Mohammad Javad Zarif to the country earlier this year, saying Iran presented a $1 billion prospect for New Zealand.
Italian Deputy Minister for Economic Development, Ivan Scalfarotto and New Zealand Minister of Trade, Todd McClay, have jointly hosted a business event in Milan today committing to doubling two-way trade between the two countries.
Mr McClay is on a trade promotion visit to Europe and today joined his Italian counterpart at a Business Roundtable with 30 New Zealand and Italian businesses.
“At my last meeting with Mr Scalfarotto, we reaffirmed our commitment to expanding bilateral trade and agreed to bring our business communities together,” says Mr McClay.
Mr Scalfarotto said today's Roundtable event had demonstrated the supportive business environments and commercial opportunities that exist in both countries and celebrated the areas of collaboration and innovation between New Zealand and Italy.
Two way trade currently stands at NZ$1.5 billion and is focused on machinery, hides and wool, food and beverage, and technology.
The two ministers believe two-way trade can double and have committed to create more business-to-business links to allow this to happen.
“Another way to expand trade ties is through the conclusion of a Free Trade agreement between New Zealand and the European Union, which will bring win-win outcomes for both countries,” says Mr McClay.
He thanked Mr Scalfarotto for his support.
Pacific Partnership union Presidential sinking welcomed---but public displays of globalisation grief still mandatory
The pending collapse of the Trans Pacific Partnership trade union will be secretly welcomed by New Zealand traders and policymakers alike.
One reason is that New Zealand offers no finished goods challenge to United States manufacturers.
The other reason is that the Trump Exit evaporates dangers to still flourishing trade with China which would have been tarnished by New Zealand belonging to what is in effect an anti-China bloc.
New Zealand exports to the United States are overwhelmingly raw materials for further processing.The president-elect vows to restore United States pre-eminence in manufactured goods of all description.
Mr Trump claims that over the past 20 years that the United States has financed the rise of the Chinese middle class.
This he claims has been at the cost of the careers and jobs of the United States whose own middle class has been relegated in many states to low paying jobs, if they have jobs at all.
Mr Trump’s overwhelming loyalty is to the productivity of United States rust belt states, as they are known, which saw him through to the presidency.
Mr Trump is pledged to revive specific United States industries. They are in:-
None of these compete with anything coming from New Zealand. Indeed, New Zealand can claim common cause with the United States in seeing its own textile industry shrink in the face of exports from the Orient.
In the last analysed statistical year New Zealand was the United States’ 57th largest supplier of imports.
The main categories were: Meat (frozen beef), albumins, modified starch and glue (mostly caseins), wine dairy, eggs, and honey, along with milk protein concentrate .
The one challenge in the process finished consumer product category is wine (USD296 million.)Wine though is focussed on the West Coast, notably California. None of these wine states are by definition rust belt states.
They overwhelmingly voted for Hillary. They can expect no favours in protective tariffsfrom the incoming administration.
On the president-elect global hit list meanwhile are countries such as Malaysia, Mexico, Singapore, and Vietnam, and Japan. These all compete in manufactured products with the United States.
They are all members of the Trans Pacific Partnership Trade Agreement and nations which the Trump Doctrine blames for taking away manufacturing jobs from his American constituency.
January 21 next will be the first day in office for President Trump with the proclaimed cancellation of the Trans Pacific Partnership as his first executive priority.
From the MSCNewsWire reporters' desk - Monday 28 November 2016
The new Customs and Excise Bill will strengthen border management and make life simpler for businesses, says Customs Minister Nicky Wagner.
“The Bill will take the place of the out-dated Customs and Excise Act 1996, which is difficult to understand and apply, creating unnecessary compliance costs for business,” Ms Wagner says.
“Businesses’ obligations will be clearer and there will be more flexibility in meeting them in the new modern legislation.
“We have addressed concerns raised by the public during consultation around Customs’ powers to search e-devices at the border.
“Customs’ powers to examine and access electronic devices will be restricted through a two-stage search threshold. This means that Customs will only be able to search a device if they have a reasonable suspicion or belief of offending under the Act.
“The new search powers strike a balance between protecting privacy and ensuring that Customs can continue to protect our borders.
“There will also be greater assurance for all New Zealanders that border risks and non-compliance will be identified and minimised.”
The Bill proposes a number of changes that support the movement of travellers and goods across the border, protect New Zealand from harm, and support the collection of Crown revenue, including:
“The Bill modernises but does not substantially change most of the provisions in the current Act, and will provide Customs with modern flexible legislation needed to protect the border.”
“Some detail has been moved into regulations to enable changes to be made in response to emerging risks and new technologies and risk management approaches,” Ms Wagner says.
WELLINGTON， Nov. 22 (Xinhua) -- New Zealand exports to South Korea have grown strongly since the two countries implemented a bilateral free trade agreement in December last year， Trade Minister Todd McClay said Tuesday.
In the first nine months since entry into force of the New Zealand-Korea Free Trade Agreement， food and beverage exports to South Korea rose 16 percent to 449 million NZ dollars (317.17 million U.S. dollars) compared to the same period a year earlier， McClay said in a statement ahead of the first anniversary of the agreement.
"Those products where tariffs have been eliminated immediately have fared extremely well，" said McClay.
Exports of New Zealand cherries to Korea， for example， which previously had a tariff of 24 percent， have more than doubled (221 percent) to 4.3 million NZ dollars (3.04 million U.S. dollars) between January and the end of September while New Zealand wine exports rose 28 percent to 1.9 million NZ dollars (1.34 million U.S. dollars) following the removal of a 15 percent tariff.
Butter exports were up 150 percent to 12 million NZ dollars (8.48 million U.S. dollars) and cheese exports were up 13 percent to 58 million NZ dollars (40.99 million U.S. dollars).
"There has also been significant improvement in export items where tariffs will be removed over time，" said McClay.
The value of New Zealand's substantial kiwifruit exports to Korea have grown 18 percent so far this year to reach 65 million NZ dollars (45.94 million U.S. dollars). Avocados are up 39 percent， meat extracts for food preparations up 62 percent， and deer velvet up 81 percent， he said.
Many exporters can look forward to further improvements to their products' competitiveness in the Korean market when the third round of tariff cuts under the FTA (free trade agreement) takes place on Jan. 1， 2017， the minister said.
In the year ending September， South Korea was New Zealand's sixth largest goods export market worth 1.5 billion NZ dollars (1.06 million U.S. dollars).
| Wellington Nov 23, 2016 | -Trade Minister Todd McClay and opposition MPs will travel to Europe and Iran over the next week to take part in a number of trade-related events.
Mr McClay says New Zealand needs to engage more broadly in trade-related activities in Europe and this mission would offer a valuable opportunity to promote New Zealand goods and services in these lucrative markets.
"Italy, France and the United Kingdom are collectively worth more than $9.2 billion of two-way trade and are home to 190 million consumers. That is significant.
“The mission will engage directly with New Zealand businesses and their counterparts in these three countries and we will look to open doors to further enhance our high quality reputation and trade presence.
“I am grateful to New Zealand First Leader and Northland MP, the Right Honourable Winston Peters for agreeing to participate in the business-focused legs of the Europe visit,” says Mr McClay.
The Trade Minister will then travel to Iran with a delegation of 17 New Zealand companies.
“Iran has traditionally been a very important market for our sheep meat and butter. Earlier this year the visiting Iranian Foreign Minister said Iran presented a $1 billion prospect for New Zealand. This mission will be an important first step towards delivering on this exciting opportunity,” says Mr McClay.
Labour has designated their Trade spokesman David Clark to join the Iran delegation.
Mr McClay will also visit Warsaw to lobby the Polish government for an EU-NZ FTA.
Trade Minister Todd McClay and Malaysian Minister of International Trade and Industry YB Dato’ Sri Mustapa Mohamed met at APEC in Lima today to conclude the first General Review of the Malaysia-New Zealand Free Trade Agreement (MNZFTA).
The FTA entered into force on 1 August 2010.
“The strong trade and investment flows between the two economies are underpinned by a close and cooperative working relationship,” says Mr McClay.
“It is a solid platform to develop further trade and investment opportunities in both our countries.”
The Review Report concludes that the operation and implementation of the Agreement is serving the Agreement’s objectives to strengthen Malaysia and New Zealand’s bilateral relationship and to liberalise and expand bilateral trade.
“Both Malaysia and New Zealand have delivered on their commitments around tariff elimination, services liberalisation, and the treatment of investments,” says Mr McClay.
New Zealand’s goods exports to Malaysia increased by 34 per cent from NZ$705 million in 2009 to NZ$943 million in 2015.
Malaysia’s goods exports to New Zealand increased by 70 per cent from NZ$0.9 billion in 2009 to NZ$1.46 billion in 2015.
Services exports, investment flows and visitor numbers have also all increased since MNZFTA’s entry into force.
“Both Minister Mustapa and I are confident that the FTA will continue to develop and deepen the trade, investment and economic links between Malaysia and New Zealand,” says Mr McClay.
Prime Minister John Key today announced the launch of negotiations to upgrade the New Zealand - China Free Trade Agreement (FTA).
The announcement followed a meeting this morning with Trade Minister Todd McClay and Chinese Commerce Minister Gao Hucheng at the APEC Summit in Lima, Peru. Mr Key and President Xi welcomed the commitment to an upgrade at the APEC Leaders’ retreat today.
“New Zealand was the first developed country to negotiate and conclude an FTA with China, and I’m pleased that today we have reached the fifth ‘first’ in our relationship, as the first developed country to launch an upgrade of an FTA,” says Mr Key.
“It has been eight years since our FTA with China came into force and it has exceeded all expectations. It has an enviable record and showcases to the world the importance of trade liberalisation.
“The upgrade will be an opportunity to deepen and broaden our comprehensive strategic partnership.
“It will ensure that our FTA continues to drive our relationship forward and takes into account the FTAs that China has negotiated with other trading partners since 2008.”
The negotiations will look to improve or enhance the broad range of areas already covered by the FTA. This gives either party the ability to raise issues of importance to them, and includes technical barriers to trade, customs procedures, cooperation and trade facilitation, rules of origin, services, and environmental cooperation. It will also address a number of newer areas such as competition policy and e-commerce.
A first round of negotiations will be held in the first half of 2017.
China is New Zealand’s second-largest goods and services export market and our largest export destination for goods. In the year ending June 2016, the value of goods and services exports totalled $12.2 billion.
Since the FTA, New Zealand’s goods exports to China have quadrupled, reaching $9.2 billion, and services exports have tripled, reaching $3.0 billion.
Obvious benefits emerging from shrouds
| Napier - MSCNewsWire - Monday 21 Nov,2016 |- Now that the media-led hysteria attendant upon the election of Donald Trump is fading we can obtain a clear fix on the new United States trade policies.
They in fact indicate an increasingly fair wind for New Zealand.
The priority is to in-shore what was once United States based engineering and manufacturing and return it to the rust-belts where the electors voted heavily for Trump.
This will not affect New Zealand which in the 1980s and in pursuit of globalisation ceased the manufacture here, actually added value, of all the most contentious products from the Trump point of view, notably vehicles.
The real shoot- out is between the United States and China. Here, New Zealand is in a strong position. An example will illustrate this point.
U.S. trade and commerce authorities in 2009 after President Obama took office imposed a punitive 35 percent tariff on vehicle tyres from China. In response, China took retaliatory steps of imposing tariffs on US chicken products with the result that importers now started by-passing the United States.
The point being that New Zealand stands to benefit in any forthcoming tit-for-tat trade war by acting as default supplier.
In New Zealand the emphasis on the Trump victory has centred on the Trans Pacific Trade wrap-up signed in Auckland earlier this year.
In fact and as MSC Newswire has consistently pointed out this now represents an earlier move to contain China by ensuring that the bulk of world trade, 80 percent, continues to be conducted in the USD.
This was a half-way house because of the Obama-Clinton adherence to the globalisation philosophy.
An anti-globalist president-elect Trump is bent on suppressing China’s currency while also stalling its exports to the United States
Tariff rates as high as 45 per cent have been floated as deterrents to Chinese manufactured goods imports into the United States.
China is the US largest trading partner, with USD $598 billion in total goods traded between the two nations in 2015.
Of that $598 billion, U.S. exports to China amounted to $116 billion, while goods imported from China amounted to $482 billion. This means the U.S. goods trade deficit with China was $366 billion in 2015, a 6.6 percent increase over 2014.
Meanwhile the détente between the United States and Russia implicit in the Trump victory is scheduled to end the US led embargo on Russia. New Zealand is party to this.
The embargo was imposed at the same time as EU production started moving away from quota restrictions and this has led to massive farm surpluses in Europe to New Zealand’s detriment.
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242
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