Trading barbs may not be beneficial

Since Labour came to power, Trade Minister David Parker has made subtle, yet significant, changes to the way the Government communicates about trade to the public.

Rather than simply talk up the benefits of selling goods and services overseas, Parker has validated concerns by making changes, in the name of sovereignty, pledging to ban foreigners from buying residential property.

He has also offered a more sympathetic ear, even as he points out opponents are often blaming trade, when their real concern is something else, such as the inevitable change brought on by new technology.

This approach appears to have taken the heat out of the debate, allowing Parker to sign the CPTPP with little fuss from the public, something National could never have dreamed of achieving.

Now Parker appears poised to go further.

The minister is expected to announce a consultation around a new trade policy, which he has said will be ‘‘comprehensive and inclusive’’.

Although details of the review are not yet released, there are reasons to be cautious. The benefits of trade are not necessarily understood by everyone, partly because they are simply taken for granted.

Every year New Zealand sells tens of billions of dollars worth of goods and services around the world.

Hundreds of thousands of jobs are directly linked to international trade.

Whether or not any particular New Zealander works in a traderelated industry, this trade is, to a large extent, what gives the dollars in their pockets meaning and value, especially when buying goods or services from overseas.

Parker appears keen to set stricter conditions for future trade deals, while maintaining an openly pro-trade stance. Provisions which would allow foreign investors to sue New Zealand overseas will be out. Environmental and labour standard protection clauses may be required.

These changes are wellmeaning and may be beneficial. But what if the process becomes a debate about whether trade is beneficial?

Overseas, the rise of Donald Trump and Britain’s decision to leave the European Union appears in no small way to be driven by anti-globalisation sentiment, exploited by populist politicians. What if this sentiment was to catch on here?

Parker needs to run a process which is sufficiently ‘‘comprehensive and inclusive’’, without running the risk that it could end up damaging New Zealand’s economic interests.