Wednesday, 18 November 2015 11:56

Massive market available for exporters if they can perform

Written by 
Dr Eldrede Kahiya. Photo: David Hollander. Dr Eldrede Kahiya. Photo: David Hollander.

A Lincoln University expert says NZ exporters will have to be on their game to reap the benefits of a huge trade access deal that has gone under the radar.

Faculty of Agribusiness and Commerce lecturer, Dr Eldrede Kahiya, says while the Trans Pacific Partnership (TPP) has dominated media recently, an equally significant trade-related development has gone largely unnoticed.

In August, New Zealand became part of the Global Procurement Agreement (GPA). Situated within the framework of the World Trade Organisation, the GPA is designed to make it easier to compete for foreign government contracts.

He says this opens up a $2.65 trillion market for New Zealand exporters willing, and able, to exploit the opportunities it presents.

However, New Zealand exporters really need to lift their game and neutralise disadvantages they face, he says, such as the sometimes difficult process involved with accessing international markets, our smaller scale and lesser market presence, higher costs, and an innate favouritism towards domestic suppliers.

"Selling to an overseas government is not unlike playing on an unpredictable wicket which favours the home team," he says.

"Given that New Zealand is aiming to grow exports to 40 per cent of the GDP by 2025, the importance of the GPA to the Business Growth Agenda cannot be overemphasised."

The GPA presents opportunities in areas of public spending such as defence, health, education, customs and border control, aviation, transportation infrastructure, postal services, and information technology.

Kahiya says tendering and evaluation processes will be much more transparent to bidders, giving New Zealand exporters a fair chance to win foreign government business, however, success depends fundamentally on understanding and adjusting to the unique challenges of selling to foreign governments.

More like this

Hawke's Bay to the world

Rockit chief executive Mark O'Donnell says consumer awareness for the brand continues to improve each year.

Featured

Vaccinate against new lepto strain

A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.

Funding boost for red meat

Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).

Otago's supreme winner

Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.

Editorial: Wake up Wellington

OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.

TV series to combat food waste

Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.

National

Machinery & Products

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

» Latest Print Issues Online

The Hound

Cut with care

OPINION: The new government has clearly signalled big cuts across the public service.

Bubble burst!

OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter