The Australia New Zealand Leadership Forum (ANZLF) welcomes the appointment of Stephen Jacobi and Simon Le Quesne to the New Zealand arm of the ANZLF Secretariat.
10 ways that New Zealand’s trade policy offers a brighter future for all of us
We love trade, so we’re pleased that, in view of the upcoming NZ election, the folks at It’s our future have initiated a campaign highlighting their wish list for trade agreements in the future. We welcome this debate. Trade is important and needs to be talked about. In the spirit of engagement, we have come up with our own list. (It might be described as “relentlessly positive”….)
Our interest is in seeing trade and investment deliver value for New Zealand and for Kiwis. We welcome feedback. Let’s make trade great again!
- Greater transparency in negotiations
Trade negotiations offer important new opportunities for New Zealand exporters and the households and communities they support. But New Zealand negotiators have acknowledged that negotiations must be conducted more transparently than in the past, including by keeping the public better informed and consulting more effectively with stakeholders. We agree. The public, business and other stakeholders, should hold them to that. If consultation is done well, there should be no need to share negotiating texts. This helps the parties to find balance and mutually-acceptable compromises by preserving the confidentiality of the parties, as in any negotiation. It also helps to strengthen the hand of New Zealand negotiators.
- Democratic oversight
All multilateral treaties and major bilateral treaties must be presented to Parliament for examination, and are subject to a National Interest Analysis and a Select Committee process taking account of public submissions. Only Parliament can change New Zealand law, if a new treaty requires it.[1]
- Preserve the Government’s right to protect the public interest and the environment
The New Zealand Government remains free to protect and promote the health and wellbeing of its people and the natural environment, thanks to strong and enforceable carve-outs that New Zealand negotiators have insisted on including in all of our trade agreements. These carve-outs preserve the Government’s right to regulate on matters of legitimate public policy.
- An overseas investment regime with high integrity
The New Zealand Government sets its own rules on international investment. At the same time, successive New Zealand Governments have welcomed foreign investment because it provides much-needed capital to strengthen and develop our own businesses, infrastructure and productive capacity. New Zealand’s existing trade agreements contain safeguards to protect the Government from frivolous or unsubstantiated claims under Investor-State Dispute Settlement (ISDS). New Zealand negotiators also pursue ISDS rules that help to reassure New Zealanders investing overseas that their investments will be protected from unwarranted actions by other governments.
- Protection of international law
New Zealand trade negotiators have broken new ground by including legally-binding provisions to safeguard labour standards and the protection of the environment in trade agreements. An international rules-based system – for trade as well as other important policy matters – is critical for a small country like New Zealand.
- Honour the Treaty of Waitangi
All New Zealand trade and investment agreements contain a strong and comprehensive carve-out to protect the rights of Māori and enable the Crown to fulfil its Treaty obligations, consistent with Te Tiriti o Waitangi. The Waitangi Tribunal found that the approach used in these trade agreements provides a reasonable degree of protection to Māori interests.[2]
- Raise living standards in New Zealand
Trade agreements enable New Zealand farmers, manufacturers, workers, service providers and firms to benefit from new export opportunities, lower trade costs and more favourable trade rules. That helps to raise incomes for the families and communities that exports support, and allows more and better jobs to be created. The tradable sector accounts for over 40 percent of New Zealand’s real GDP and almost three-quarters of a million jobs.[3] Trade also gives New Zealanders access to a wider and better-value range of products and services than we would otherwise have.
- Promote global economic development
Trade has helped to lift over a billion people out of extreme poverty over the last thirty years. Trade not only enables people to earn export income for what they can produce best, but also to buy goods and services more cheaply. This is most powerfully felt by the poor and vulnerable, who spend a higher proportion of their incomes on basic goods and services, which are relatively more traded. One study of 40 countries found that open trade boosted the purchasing power of low-income households by nearly two-thirds.[4]
- Promote the free flow of knowledge and information
New Zealand trade policy should embrace free flows of data and information while also seeking appropriate protections for privacy and security. Trade and investment flows enhance the sharing not only of knowledge, but also technology and innovation. Greater connectedness and openness over the last fifty years –through flows of information, goods, services, people and capital – has enabled unparalleled global economic development.
- But global trade can work better
The global trading system, and efforts to liberalise trade, make a hugely important contribution to individual livelihoods and global prosperity. But the system is far from perfect. Business models have changed, and the rules need to be updated for today’s realities. Equally, in order to ensure that trade contributes meaningfully to inclusive growth, governments need to put in place policies at home ensure that the benefits of trade can be more widely shared. Those who lose jobs – as a result of technology change or domestic economic churn, for example – must not be left behind. Solutions will need to be found in education, retraining, social safety nets, policies that support worker mobility and other areas. What is needed is creative and targeted policies that enable openness while managing any challenges. But this broader obligation must not be an excuse to walk away from trade. That will leave all of us the poorer.
This post has been prepared by the team at Tradeworks.
[1] New Zealand Parliament, ‘The Treaty-making process in New Zealand’, https://www.parliament.nz/resource/0000177495
[2] Waitangi Tribunal ‘Report on the Trans-Pacific Partnership Agreement, WAI2522. The Tribunal also found that there should be further dialogue between the Crown and Māori on an appropriate Treaty clause for future trade agreements and on ISDS. https://forms.justice.govt.nz/search/WT/reports/reportSummary.html?reportId=wt_DOC_104833137
[3] NZIER (2017), ‘The Benefits of Trade’, report for Export New Zealand, page 1; see fully report at http://www.exportnz.org.nz/__data/assets/pdf_file/0018/128025/Benefits-of-Trade.pdf
[4] OECD (2017), ‘Making Trade Work for All’, Trade and Agriculture Directorate, May 2017, page 7 footnote 9, and page 29, https://www.oecd.org/trade/making-trade-work-for-all.pdf
REGISTER WITH TRADE WORKS
Register to stay up to date with latest news, as well as saving and discussing articles you’re interested in.
Latest News
NEW TEAM FOR AUSTRALIA NEW ZEALAND LEADERSHIP FORUM
Media release, 2 April 2024 The New Zealand Co-Chair of the Australia New Zealand Leadership Forum (ANZLF), Greg Lowe, welcomes the appointment of Stephen Jacobi and Simon Le Quesne to the New Zealand arm of the ANZLF Secretariat. The ANZLF brings business leaders,...
NZ/EU FTA A BONUS FOR SOME SECTORS – BUSINESS FORUM
Media release, 22 March 2024 The NZ International Business Forum (NZIBF) acknowledges the passage of the implementing legislation for the New Zealand/European Union Free Trade Agreement and looks forward to the FTA’s entry into force on 1 May. “This agreement was...
“MEAGRE OUTCOME” FROM WTO IN ABU DHABI – BUSINESS FORUM
Media release, 2 March 2024 Despite its overwhelming importance at the heart of the international trade system, members of the World Trade Organisation (WTO) have concluded their Ministerial in Abu Dhabi (“MC13”) with only a meagre outcome. NZ International Business...
To go or woe with the WTO?
We’ve been here before with the World Trade Organisation (WTO). The global trade body’s 13th Ministerial meeting (“MC13”) opens in Abu Dhabi on Monday 26 February, with Trade Minister McClay serving as Vice-Chair. In recent weeks diplomats, trade...
DCANZ – Agricultural Subsidy Distortions Must Be Addressed
23 February 2024 - Media Release by the Dairy Companies Association of New Zealand (DCANZ) As the world’s Trade Ministers head to a WTO meeting in Abu Dhabi, the Dairy Companies Association of New Zealand (DCANZ) is calling for an immediate capping of agricultural...
Asia-Pacific business leaders call for greater economic dynamism with people at the center of the APEC agenda
16 February 2024 - APEC NEWS RELEASE Issued by The APEC Business Advisory Council (ABAC) The APEC Business Advisory Council (ABAC), meeting this week in Kuala Lumpur, Malaysia, expressed deep concerns about the growing pressures of economic fragmentation and the risks...
SUBMISSION TO THE PARLIAMENTARY FOREIGN AFFAIRS, DEFENCE AND TRADE COMMITTEE – FEBRUARY 2024
NEW ZEALAND EUROPEAN UNION FREE TRADE AGREEMENT LEGISLATION AMENDMENT BILL Introduction and Summary This submission is made on behalf of the New Zealand International Business Forum (NZIBF) and Export NZ. NZIBF is a forum of senior business leaders working...
ABAC Statement on WTO MC13 – February 2024
Now, more than ever, the world needs a credible, relevant, and effective multilateral trading system, with the World Trade Organization (WTO) at its core. In this era of global challenges, the APEC Business Advisory Council (ABAC) recognizes that the WTO is...
Global Industry Statement on the WTO Moratorium on Customs Duties on Electronic Transmissions
NZIBF has joined 170 international business associations in calling for an extension to the current moratorium on tariffs applying to digital services (like Netflix) at the forthcoming WTO Ministerial meeting. The undersigned associations urge WTO members to support...
Resilient supply chains: Yesterday, today and tomorrow
Published by the Hinrich Foundation, Singapore, 23 August 2024 By Stephen Jacobi History has much to teach us about the way trade contributes to prosperity through the movement of goods, services, people, and ideas. Today, data can be added to this web of...
SUBMISSION TO THE MINISTRY OF FOREIGN AFFAIRS AND TRADE
GENERAL REVIEW OF THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS- PACIFIC PARTNERSHIP (CPTPP) DECEMBER 2023 Summary This submission is made on behalf of the New Zealand International Business Forum (NZIBF). As individual NZIBF Members may make their own...
Todd McClay – your trade mission, should you choose to accept it …
As published by Newsroom 19 December 2023 By Stephen Jacobi “Twas the week before Christmas, When all through the house Not a creature was stirring, Except busy trade officials … ‘Tis the season to be “BiM-ing”* and the NZ International Business Forum has sent its...
2023 – Steps forward and back
Trade liberalisation moved forward and backward in 2023. Some notable gains have been achieved for New Zealand, but war, geo-political rivalry and global inflation continue to depress global markets. While the pandemic continued to lurk in the shadows, 2023 was the...
NZIBF releases Brief to the Incoming Minister of Trade
DECEMBER 2023...
NZIBF 2023 Chair Report
I am pleased to present my third report on the activities and achievements of the NZ International Business Forum (NZIBF) for 2023-24, our sixteenth year of operations. I am grateful to all Members and to our executive team for your continuing support. As I...