It’s a busy time for all at the moment! The PM, Christopher Luxon, is concluding the first trade mission of the new government, having led a senior business leaders delegation to Singapore, Thailand, and the Philippines – the trade minister has been in China meeting with ministerial counterparts, and excitingly we’re on the countdown to the NZ-EU FTA coming into force at the end of this month!
We had some great news overnight as the EU-NZ Free Trade Agreement passed its third and final reading. The Bill will now receive Royal Assent from the Governor-General bringing it into law and completing the ratification process. Next step – Entry into Force (Which we understand will be on the 1st May). Keep an eye out as we’re working with some great partners on a few EU – focused events and bits of materials in the lead up!
There was little in the media about Trade Minister Hon Todd McClay’s visit to the UAE last week. But it seems to have been successful. New Zealand negotiators are apparently in the UAE in the final stages of the negotiation of the FTA this week. There is talk of a high-level visit to New Zealand from the UAE next week. This all suggests that we might be on the verge of finalising another FTA. Australia has also been negotiating with the UAE, and earlier this week, it announced that both parties had reached an agreement that would eliminate 99% of tariffs on Australian goods being imported into the UAE.
The Ministry for Primary Industries (MPI) is seeking feedback on proposed options for export exemptions under the Food Act 2014, relating to food labelling and composition. Export New Zealand (ExportNZ) is pleased to contribute to this work and submit our feedback on the discussion document titled “Proposed Options for Export Exemptions from New Zealand Composition and/or Labelling Requirements Under the Food Act 2014”
(The Discussion Document).
With the Indian, UK, French and European Parliament elections out of the way, the global focus is squarely on the US November election. At this point, it is too early to tell what impact the news that President Biden has withdrawn from the race will have on trade policies and expectations, but prior to this decision, Trump looked very likely to be the victor in key swing states post the assassination attempt. This has meant an in-depth focus on Trump’s trade policies as these now are looking very likely to be introduced.
This submission is made on behalf of the New Zealand International Business Forum (NZIBF) and ExportNZ. NZIBF, whose members are listed at Annex A,1 is a forum of
senior business leaders working together to promote New Zealand’s engagement in the global economy. ExportNZ, a division of BusinessNZ, is a national industry association representing a diverse range of exporters throughout New Zealand.
The global situation has become increasingly tense with Europe following the United States in announcing new tariffs on Chinese electric vehicles. China is proposing retaliation. US wider trade policy under President Biden is appearing even more protectionist, and President candidate Trump is doubling down on plans for more tariffs, should he win. It is too early to determine what the outcome of the EU Parliament elections mean for EU trade policy.
UAE FTA Negotiations to Go Ahead.
At the beginning of the month, New Zealand Minister of Trade, Todd McClay met with his UAE counterpart, Dr Thani bin Ahmed Al Zeyoudi to announce that New Zealand and the United Arab Emirates would formally commence negotiations towards a bi-lateral free trade agreement.
Activity over the past month has been largely devoted to ensuring full utilisation of FTAs that have been negotiated rather than negotiating new ones. The one exception is the Gulf where work continues on both the GCC and UAE opportunities. Submissions on the UAE FTA are being analysed.
Foreign Minister Peters paid an important visit to India this month. The visit appears to have gone well and to have been appreciated by the Indian side. No specific outcomes were expected, particularly on the trade front.