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Vangelis Vitalis says the deepening trade war is creating “a general sense of uncertainty”.
New Zealand trade officials are watching the escalating trade war between the US and China with mounting concern and anxiety.
Deputy Secretary Trade and Economic at MFAT Vangelis Vitalis says the deepening trade war is creating “a general sense of uncertainty”.
“We have two major global economies not getting on, that’s always bad news for small and medium sized economies that look for larger ones to lead the way or at least not stand in the way of progress in developing the international rules based system,” he says.
Vitalis made this comment during a global trade update webinar organised by Beef+Lamb NZ two weeks ago.
He says the trade war is creating more uncertainty and more risks out there for businesses.
There are some direct risks to NZ. He notes that the free trade agreement with China has been part of NZ’s growth story and helped us weather the global financial crisis.
He says key for NZ going forward will be how the phase one deal between the US and China is implemented.
“Are they going to buy more beef or sheepmeat from the US and what it means for displacing our own products?
“What preferential access they have into each other’s markets...those are the risks out there.”
Vitalis urged exporters to report any pattern of behaviour that caused market issues to MFAT.
“That’s the key focus for us over the next 12 to 18 months, to help exporters overcome barriers.”
Three years ago, US President Donald Trump launched the trade war to pressure Beijing to implement significant changes to aspects of its economic system that he claimed facilitated unfair Chinese trade practices, including forced technology transfer, limited market access, intellectual property theft, and subsidies to state-owned enterprises.
Trump argued that unilateral tariffs would shrink the US trade deficit with China and cause companies to bring manufacturing jobs back to the US.
Between July 2018 and August 2019, the US announced plans to impose tariffs on more than US$550 billion of Chinese products, and China retaliated with tariffs on more than US$185 billion of US goods.
One of the most galling aspects of the tariffs whacked on our farm exports to the US is the fact that, now more than ever, US farmers are being propped up by government welfare – a direct result of Trump’s hardline on its trading partners.
China looks set to play a key role in helping the New Zealand wool sector shift away from trading as a commodity supplier.
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Trade Minister Todd McClay says the US tariff decision appears to be based on a calculation of trade deficits, with countries running a surplus with the US moved to the higher rate.
Former special agricultural trade envoy Mike Petersen says meat exporters are going to have to be nimble and agile to take advantage of any opportunities that may arise in the chaos of the tariff crisis.
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
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