Weekly Global Report:
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Trade and Economic Updates
Domestic
NZ-EU FTA entered into force
- In a win for Kiwi exporters, the New Zealand-EU Free Trade Agreement (NZ-EU FTA) entered into force on May 1st. This deal secures reductions in tariffs for kiwifruit, wine, seafood, and a wide range of other products. It includes commitments on services and investment, which ensure a level playing field for New Zealand businesses in the EU market. T EU is our fourth-largest trade partner, with combined trade in goods and services exceeding $20 billion annually (representing over 10% of our total trade). The NZ-EU FTA is expected to boost market access for Kiwi exporters, contributing to the government's goal of doubling exports within a decade. To grow the awareness of the opportunities this agreement presents, the Government will undertake an information campaign to help Kiwi businesses grow trade with the EU. For more information about the NZ-EU FTA, including how Kiwi businesses can benefit, visit the NZ-EU FTA page on the MFAT website.
Te Taumata holds regional trade hui
- Te Taumata held its regional trade hui in Ngāmotu New Plymouth on 15 April, providing an important opportunity to engage with Taranaki whānui. The theme of the hui was ‘Doubling Export Value in 10 Years’. The programme highlighted opportunities for the Māori economy, with a particular focus on the opportunities presented by the recently implemented free trade agreements with the United Kingdom and the European Union (EU) (including the Māori Trade and Economic Cooperation Chapters in these agreements), and upcoming trade missions. The programme also addressed challenges to export growth including outstanding trade barriers, the need to develop new and emerging sectors such as services (beyond tourism), and moving up the value chain.
Americas
US Secretary of State and Secretary of Treasury travel to China
- US Secretary of State Antony Blinken and Treasury Secretary Janet Yellen separately travelled to China in April, the second time each of them had visited in less than a year. During Secretary Blinken’s visit, he met with President Xi Jinping and his counterpart Wang Yi and discussed key priorities in the bilateral relationship and a range of regional and global issues. Secretary Yellen, during her earlier visit, conducted a series of top-level economic meetings and raised issues such as the impact of China’s industrial overcapacity in sectors (including EVs and solar panels) on US and global markets. The visits reflect sustained efforts from both sides to maintain engagement through high-level meetings
Africa and Middle East
New Zealand and United Arab Emirates commence free trade agreement negotiations
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On 7 May the Minister for Trade announced that New Zealand and the United Arab Emirates (UAE) will commence negotiations on a Comprehensive Economic Partnership Agreement (CEPA). Speaking in Dubai, Hon Todd McClay said: “The UAE is a key export destination and hub in the Gulf region, and there are significant opportunities to enhance cooperation across a range of areas, including agriculture and sustainable energy. A CEPA with the UAE would also complement our ongoing negotiations towards a free trade agreement with the Gulf Cooperation Council, and I was pleased to advance these discussions during my visit to Saudi Arabia last week and my discussions with Saudi and GCC counterparts.”
For more information, including to make submission, please visit www.mfat.govt.nz/nzuaecepa or contact UAECEPA@mfat.govt.nz.
North Asia
Republic of Korea accedes to the Digital Economy Partnership Agreement
- On 3 May the Republic of Korea (Korea) officially acceded to the Digital Economy Partnership Agreement (DEPA), the first non-founding economy to do so. This was marked by a celebratory event on the side-lines of the OECD Ministerial Council Meeting in Paris attended by Minister for Trade Todd McClay. Alongside ensuring non-discriminatory treatment for their digital products, New Zealand exporters operating in Korea will no longer be required to have local data storage. More information can be found in a joint press release by New Zealand’s Ministry of Foreign Trade and Affairs, Chile’s Ministry of Foreign Affairs, Singapore’s Ministry of Trade and Industry and Korea’s Ministry of Trade, Industry and Energy.
Consumer prices continue to rise in China
- Data release by the National Bureau of Statistics on Saturday (New Zealand time) showed that consumer prices in China rose 0.3 percent from a year earlier. That compares with an increase of 0.1 percent in March and represents the third straight month of increases. However, the economy is still seeing a continued decline in industrial prices, with the Producer Price Index declining at an annual rate of 2.5 percent in April. Commentators indicate that deflationary pressure remains a concern.
Europe
Greece bans bottom trawling
- Greece has become the first country in the European Union to announce a ban on bottom trawling in national marine parks by 2026 and in marine protected areas by 2030. Environmentalists hope this will create a domino effect for other EU countries. Bottom fishing is still practiced in 90% of European marine protected areas, despite the European Commission’s recommendation to Member States to phase out this practice by 2030. Around 31% of New Zealand’s EEZ is closed to bottom trawling(external link). It is also prohibited in 21% of the territorial sea. In the 2021/2022 fishing year, 70% of all fish caught commercially in New Zealand were caught using either bottom trawl gear or mid-water trawl gear within 1 metre of the seabed.
Market reports released this week
The following links may provide useful information to businesses:
NZTE(external link) has a website focused on providing COVID-19 information for exporters. They’ve also launched myNZTE(external link), an interactive digital portal of insights and tools available to all New Zealand exporters.
The Treasury releases a weekly economic update(external link) every Friday. Stats NZ has published a data portal(external link) with near real-time economic indicators.
MBIE publishes a sector reports series(external link) which provides regularly updated reports on all industry sectors that make up the New Zealand economy. These include official economic data and the challenges and opportunities that face New Zealand’s industry sectors.
Business.govt.nz(external link) provides tools and advice from across government to save small businesses’ time and help make the business a success.
MFAT has created a tariff finder(external link) which is designed to help goods exporters and importers maximise benefits from New Zealand’s Free Trade Agreements and compare tariffs in 136 other markets.
The all of government Trade Barriers(external link) website can be used to register any trade barriers experienced or issues exporting to an offshore market. Queries can be sent via the website or through the MFAT Exporter Helpline 0800 824 605. Enquiries will be sent to the government agency best placed to answer.
Tatauranga Aotearoa Stats NZ provides official data on the value of New Zealand’s exports and imports of both goods and services, by commodity type via the New Zealand Trade Dashboard(external link). This interactive dashboard is updated every quarter and allows for filtering by country and by commodity type.
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Disclaimer
This information released in this report aligns with the provisions of the Official Information Act 1982. The opinions and analysis expressed in this report are the author’s own and do not necessarily reflect the views or official policy position of the New Zealand Government. The Ministry of Foreign Affairs and Trade and the New Zealand Government take no responsibility for the accuracy of this report.