Wednesday, 25 September 2024 09:55

Major shift in trade deal focus

Written by  Peter Burke
Todd McClay says the notion of an FTA is a “fairly old” concept. Todd McClay says the notion of an FTA is a “fairly old” concept.

The days of high quality, ambitious comprehensive Free Trade Agreements (FTAs) are over, says Trade Minister Todd McClay.

Speaking to Rural News at a Meat Industry Association (MIA) function in Wellington last week he says he's no longer using the word 'free' and instead is just talking about 'trade agreements' - a subtle but very significant nuance.

He says the notion of an FTA is a "fairly old" concept that was relevant in the heady days of trade liberalisation, but is not relevant in the new global context where there is greater emphasis on protectionism in trade.

McClay says the new order is demanding that NZ take a more aggressive, politically-led approach to opening opportunities for Kiwi exporters. He says it's similar in some ways to the 1970s and '80s when Britain joined the then EEC and NZ had to quickly find new markets for its primary produce. In those days there was a flurry of politicians heading to the UK, Europe and other parts of world to get new deals.

"The situation now is that we have got to put the effort in, show up and convince people about the benefits of trade and doing deals with NZ.

"If we sit at home leaving it to officials and hoping it will happen, inevitably we will get passed.

"So, you have seen the Prime Minister and Deputy Prime Minister out on the world stage a lot looking for opportunities and opening doors for our negotiators, so that our exporters to be able to do more business," he says.


 Read More


A major strategic target or the Government is India, says McClay. He says in the past nine months he's had five meetings with his counterpart in India and they now have a very constructive relationship. He says there are many things that NZ can do with India.

"We are now talking [about] how we can boost trade with India before we start talking about the architecture of what any trade deal may look like. But whatever we do, the primary food and fibre sector has to be an important part of that and the deal has to be meaningful, and India knows that."

 

 

More like this

Tough trade

OPINION: Known for serious trade negotiations with global politicians, top NZ trade official Vangelis Vitalis also knows how to crack jokes.

Featured

Big return on a small investment

Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.

Editorial: Sensible move

OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Overbearing?

OPINION: Dust ups between rural media and PR types aren't unheard of but also aren't common, given part of the…

Foot-in-mouth

OPINION: The Hound hears from his canine pals in Southland that an individual's derogatory remarks on social media have left…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter