Weekly Global Report:
No reporting over Easter
Due to the Easter break there will be no weekly round-up for the week of 1 April. We wish everyone a safe and happy holiday.
Feedback
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We welcome feedback from New Zealand exporters on this report, and invite requests for reporting. If there’s reporting topics you believe would be beneficial to you or the New Zealand exporting community, go to our open forum survey.(external link) If you would like to subscribe to this weekly update, go to our subscription page(external link)(external link) or email us at exports@mfat.net.
Trade and Economic updates
Domestic
Consultations now open
- A reminder that the Ministry of Foreign Affairs and Trade is currently seeking views on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) General Review. Feedback is sought to ensure that CPTPP remains relevant to the trade and investment issues and challenges New Zealand currently faces. Consultation opened on 7 March 2024. To make a submission, email cptpp@mfat.govt.nzor click here for a survey link(external link). For more information about CPTPP and the General Review, please visit the MFAT website(external link).
Europe
EU Parliament passes new laws on artificial intelligence
- On 20 March the European Union Parliament passed the Artificial Intelligence (AI) Act with 523 votes in favour, 46 votes against, and 49 abstentions. The AI Act, the world’s first comprehensive AI law, aims to reduce the risks associated with AI while creating opportunities, combat discrimination, and enhance transparency. The Act categorises types of AI according to risk and the level of impact, with stricter requirements for scraping of facial recognition images from the internet or CCTV footage to create facial recognition databases. Next steps include a final legal scrub and linguist check, and formal endorsement by the European Council. Press Release here. (external link)
North Asia
Visit from China’s Foreign Minister Wang Yi to New Zealand
- China’s Foreign Minister, Wang Yi, visited New Zealand from 18–19 March 2024, marking the first visit by a Chinese Foreign Minister since 2017. Minister Wang held a series of meetings in Wellington during his visit, including a bilateral meeting and official dinner with Minister of Foreign Affairs, Winston Peters. The discussion between ministers was wide-ranging and enabled engagement on many aspects of New Zealand’s relationship with China, including trade, business, and people-to-people links. Minister Peters noted he raised areas of cooperation as well as areas of difference such as human rights. Minister Wang also met with Prime Minister, Christopher Luxon and Minister for Trade, Todd McClay.
- Minister Wang also joined a Garage Project beer tasting following his official meetings on Monday. Minister Wang, a known craft beer enthusiast, was joined by Ministers Peters and McClay. The Garage Project beer tasting also went down smoothly in China, becoming a trending topic on social media channels. See: Minister Peters’ X post(external link).
South and South East Asia
India signs a free trade agreement with EFTA
- India and the European Free Trade Association (EFTA: Iceland, Liechtenstein, Norway and Switzerland) signed a Trade and Economic Partnership Agreement (TEPA) on 10 March, concluding 21 rounds of negotiations over 16 years. The Agreement includes a commitment by EFTA countries to invest USD$100 billion and create one million jobs in India over the next 15 years. The Parties will also commit to eliminate customs duties on imports of many industrial products. Most agricultural goods, including dairy, are excluded from the Agreement. The next step would be to ratify the Agreement, with Switzerland planning to do so by 2025. India is also currently negotiating free trade agreements with the United Kingdom and the European Union.
Thailand submits a letter of intent to join OECD
- Thailand is the second South East Asian country (after Indonesia) to seek OECD membership as a way to drive domestic economic reform and to draw in trade and investment. As the 23rd largest economy in the world, Thailand’s engagement with the OECD has deepened recently as a result of the OECD Thailand Country Programme. Thailand has also begun to implement a number of OECD recommendations to align its policies with international standards, including in corporate governance, anti-corruption, and education.
Middle East
Türkiye Central Bank raiss interest rates
- In Türkiye, the Central Bank unexpectedly raised interest rates on Thursday from 45% to 50% in an attempt to combat persistent and stubborn inflation, which reached 67% in February 2024. The substantial rate hike resulted in an immediate strengthening of the Turkish lira (TRY), which increased 2% against the US dollar following the announcement. In a statement adjoining the rate hike, the Central Bank said their “[t]ight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed.”
Saudi Arabia’s non-oil economy grows
- In Saudi Arabia, the Ministry of Economy and Planning announced on Thursday that the non-oil economy was responsible for a record-breaking half of the country’s gross domestic product (GDP) in 2023. Private sector investment leapt 57% in the last two years, with industries like arts and entertainment, accommodation, food services, transportation and storage leading the surge. The announcement evidences the ease-of-doing-business and economic diversification gains being made under Saudi Arabia’s Vision 2030 agenda.
Market reports released this week
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Previous global economic round-ups can be found here(external link).
External links
The following links may provide useful information to businesses:
NZTE(external link)(external link) has a website focused on providing COVID-19 information for exporters. They’ve also launched myNZTE(external link)(external link)(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)(external link)(external link) every Friday. Stats NZ has published a data portal(external link)(external link)(external link) with near real-time economic indicators.
MBIE publishes a sector reports series(external link)(external link)(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)(external link)(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)(external link)(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)(external link)(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)(external link)(external link). This interactive dashboard is updated every quarter and allows for filtering by country and by commodity type.
Market reports released this week
Decarbonisation of Norway’s Cruise Industry(external link)
More reports
View full list of market reports(external link).
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New Zealand Trade & Enterprise’s comprehensive market guides(external link) cover export regulations, business culture, market-entry strategies and more.
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.