A front-row place helps in trade
OPINION: Rugby commentators like to call those who specialise in the inner workings of a rugby scrum ‘‘masters of the dark arts’’, as what goes on in there is a mystery to most outsiders.
It’s much the same with trade, and the bargaining and negotiating to sell products in overseas markets.
Few of us know what goes on behind those closed doors, and mostly we don’t care. Like a rugby scrum, all that matters is that our team wins the ball, whether it’s by way of kicked shins or skilful compromise.
While once upon a time I packed down in a rugby scrum, I recently got a first-hand taste of some of the finer points of what’s involved when it comes to trade.
It came in Taiwan, where I was leading a delegation of Wellington companies to the 70th anniversary celebrations of the Importers and Exporters Association of Taipei.
As well as visiting our NZ Commerce and Industry Office (an organisation set up by the Wellington Chamber of Commerce that’s responsible for development of New Zealand’s trade, economic and cultural interests with Taiwan), the companies presented their products at the 27th Taipei International Food Show, with its 62,000 visitors, 1132 exhibits and 2155 booths.
But my education came while visiting one of our hosts, when one of our delegation put a small jar of his manuka honey on the table. Surely such a sought-after product would be easy to sell.
The host, one of the biggest merchants in that part of the world, immediately proclaimed it wouldn’t sell. Why? ‘‘That looks like mayonnaise – our honey is clear, brown and runny.’’
But he immediately put forward an idea that didn’t involve honey directly from the jar, and a fascinating discussion ensued. I’m not able to disclose details right now; suffice to say it’s looking likely to yield a sizeable export win.
Another of our delegation put a bottle of red wine on the table. The merchant again was quick to say it wouldn’t sell in Taiwan, because they preferred heavier French wines.
But again, an instant idea was presented and discussed, and that’s also showing promise.
Though far from the hard bargaining and dark arts that I imagine can take place, these were nonetheless two examples of what can result from a meeting of two equally motivated and determined parties.
It also demonstrated the importance being there, face to face, because only by sitting around that table could those opportunities have arisen.
For the honey maker, the promise of that meeting was matched only by a further 10 or so very promising export opportunities that came from displaying his product at the food show.
Our delegation was extremely well received in Taiwan, and it’s easy to see why.
New Zealand was just the second country (after Singapore) to sign a trade agreement with them, and they value that greatly. It delivers preferential tariff access for our goods that gives us a competitive advantage in an affluent market of 23 million people, and offers them opportunities in return.
It’s likely also to result in a delegation from Taiwan to Wellington this year, seeking joint ventures and export investments.
Besides our delegation’s success, we saw first-hand the great work NZTE is doing up there, and the value of the chamber’s office in the development of local contacts and being able to put exporters in front of the right people.
‘‘NZ Inc’’ needs to keep repeating these successes, along with the likes of the recent trial of chilled meat to China, and work by Trade Minister Todd McClay around ‘‘TPP11’’, a free trade agreement with the US, another with Mexico, Chile, Peru and Colombia, and even possibilities from having New Zealand trade policy expert Crawford Falconer recently appointed as the UK’s chief trade adviser.
Following the scrum, we’ve got to keep winning that ball.
Our delegation was extremely well received in Taiwan, and it's easy to see why.