Will India ink a free trade agreement with NZ?
Beef+Lamb New Zealand (B+LNZ) has welcomed the New Zealand Government's announcement that comprehensive free trade agreement (FTA) negotiations have formally commenced with India.
Major exporters are telling the new Government that they don't subscribe to the notion of "peak Free Trade Agreement (FTA)".
In a briefing to new Trade Minister Todd McClay, the NZ International Business Forum believes the country can still secure "comprehensive agreements" that would boost exports.
NZIBF members include Fonterra, Dairy Companies of NZ, Zespri, Meat Industry Association, NZ Apples and Pears, and NZ Winegrowers. The NZIBF board is chaired by NZ Winegrowrs chief executive Philip Gregan.
In the briefing. NZIBF acknowledges the good work done over the years to secure new markets for exporters.
However, it says it does not subscribe to the notion of peak FTA, where some trade analysts believe there aren't any likely or worthwhile deals on offer.
"The long period in which New Zealand has been able to negotiate transformative FTAs is, however, drawing to a close, and securing further trade liberalisation from similar arrangements with significant partners is likely to prove more difficult," NZIBF says.
"Even so, NZIBF has not given up on the cause of trade liberalisation or securing future, high quality and comprehensive agreements, which can take considerable time to develop, and which continue to create significant opportunities for exporters."
NZIBF says it was disappointed that its June 2021 research into possible new FTA partners was not taken more seriously by the previous government.
"We welcome the incoming Government's ambition in this area," it says.
NZIBF also points out the New Zealand is signatory to several plurilateral agreements for which there is continuing interest in accession, expansion and future upgrades.
"Accessions hold out opportunities for further liberalisation (for example, the prospect of Sri Lanka seeking to join RCEP, or Korea to join CPTPP).
"It is important that future accessions do not further diminish the quality of existing market access outcomes."
Meanwhile, NZIBF says for New Zealand exporters, the trading environment remains turbulent.
They continue to face increasing geo-political risk and a range of barriers and distortions in international markets, particularly remaining high tariffs in some sectors, non-tariff barriers (NTBs) and trade-distorting subsidies.
It says new areas of concern in the digital economy (e-commerce, paperless or data driven trade and cross border data flows) and in the nexus between trade and sustainability are becoming apparent and will require more attention by the incoming Government.
NZIBF says its members are involved in trade and climate-related initiatives such as green shipping and carbon accounting.
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