Trade key theme for Ardern-Merkel talks
Trade wars and the threats of protectionism, as well as climate change, will be priority discussion points between Prime Minister Jacinda Ardern and German Chancellor Angela Merkel, when the pair sit down for formal talks tomorrow.
Following a meeting with French President Emmanuel Macron overnight, Ardern will travel to Berlin for her first meeting with Merkel, rated the world’s most powerful woman.
Trade is set to be a key theme, however, Germany has been publicly supportive of a free trade deal between New Zealand and the European Union (EU) and making the case for it was less likely to dominate the talk in the way it would with Macron.
But as the United States and China begin to impose tit-fortat tariffs in a worsening trade war, Ardern and Merkel are likely to discuss aligned interests and areas of co-operation in preserving the international rules-based system set out by the World Trade Organisation.
And the rise of protectionism, which threatens to further bolster barriers to free trade, could set global markets back amid a rising sentiment against globalisation.
If the Sino-US trade war worsens, it could prove devastat- ing for thousands of growers and manufacturers on both sides as well as have a lasting economic impact on several global markets.
Germany represents the largest and most powerful economy in the EU and it has been a powerful advocate for multilateral agreements and adherence to the rules-based system, both in the EU and further afield.
New Zealand would have common ground in that area, Ardern said.
‘‘When it comes to trade, for me it’s about raising the international environment. We probably have some real shared values around making sure that we guard and protect the international rules that we have around trade.’’
Ardern said she would also be discussing ways to potentially increase movement between New Zealand and Germany.
‘‘Particularly around our education exchanges, and also over our working holiday visas.’’
According to the Ministry of Foreign Affairs, Germany is New Zealand’s sixth largest trading partner, representing $5.2 billion in two-way goods and services trade.
Nearly 80,000 German tourists visit New Zealand each year, and the country was also New Zealand’s sixth largest education market and its largest in Europe. About 3500 students study each year here, and about 15,000 young Germans are granted visas under a working holiday scheme.
Following her meeting with Merkel, Ardern will give a major speech on trade at Berlin’s Friedrich Ebert Foundation.