PM pledges ambitious trade target
More than $90 million will be invested in trade as the Government sets a target of increasing free-trade coverage to 90 per cent of exports by 2030.
New diplomatic posts in Ireland and Sri Lanka and an advisory group to provide more information about trade deals were part of a $91.3m package announced yesterday by Prime Minister Bill English.
The money would be invested over the next four years through this year’s Budget, he said.
It would ultimately be aimed at increasing the free-trade coverage of exports to 90 per cent, from 53 per cent.
English told business leaders in Auckland that disruption of international trade was the biggest threat to the country’s economy.
He was ‘‘bemused’’ by opposition to free trade, which had helped spur strong growth in New Zealand, and said he was disappointed in the United States’ withdrawal from the Trans-pacific Partnership Agreement.
‘‘It has left a vacuum for others to fill, and it is up to the remaining signatories to provide the leadership needed to get some sort of agreement over the line.
‘‘Because – make no mistake – while the US withdrawal is a setback, it is not the end of the road.’’
English said many of the world’s largest economies were committed to open trade, and the country needed to remain ambitious in a world where opposition had become louder.
The Government had therefore updated its trade strategy, called Trade Agenda 2030, which set an ‘‘ambitious’’ target of improving the free-trade coverage of exports to 90 per cent.
‘‘Those of you experienced in trade will realise just how challenging that target will be.
‘‘But I’m sure you also realise the massive potential benefits.’’
A new embassy would be established in Dublin as well as a new High Commission in Sri Lanka.
Many business leaders welcomed the plan, but Xero chief executive Rod Drury said the Government needed to make sure people understood how more exports could improve conditions in New Zealand.
‘‘How will selling a product in Europe translate to more jobs in regional New Zealand?
‘‘How will success in international markets build better schools and hospitals?
‘‘Communication is key to ensuring this agenda has the support it needs,’’ Drury said.
English said the Government wanted to do a better job of informing the public about trade deals.
It would therefore establish a ministerial advisory group made up of unions, business leaders, iwi and non-governmental organisations.
The formal launch of trade negotiations with the European Union was on track to begin later this year, while the Government would look at opportunities in Latin America and India as well.
English said the Government also wanted to look at expanding opportunities in the US.
Exportnz chief executive Catherine Beard said exporters backed attempts to create new agreements and to broaden existing ones.
‘‘We would like to see more work done to challenge non-tariff barriers that continue to impede exporters’ access to many countries, as well as work on developing overseas direct investment and growth in services exports,’’ she said.
Businessnz chief executive Kirk Hope said businesses would take confidence from the focus on innovative exports in the agenda.