Editorial: We are Trumped
OPINION: Nothing it seems can be done in the short term to get Donald Trump to change his mind about removing the unfair 15% tariffs that he’s imposed on New Zealand exports to the US.
Changes need to be made to the multilateral trading system, says commercial law firm Chapman Tripp.
The rules-based multilateral trading system, including the World Trade Organisation (WTO), is more important than ever for international trade.
Chapman Tripp says the system is under significant stress and its rules need to be updated to reflect innovation and global disruption.
“There needs to be an update to the rule book to address reform on new issues that weren’t part of the global trading system when the rules were written, such as digitalisation, climate change and sustainable development,” says Chapman Tripp international trade expert and partner Daniel Kalderimis.
In this year’s International Trade – Trends and Insights publication, the firm took stock of international trade in 2019 and looks ahead to 2020.
Uncertainty and disruption are key themes with the most immediate area of concern being the future functioning of the WTO’s dispute settlement system. As of December 10 the Appellate Body ceased to function because it had insufficient members to hear an appeal.
That is because of disagreements over its operation that have led the US to block the reappointment or appointment of members.
“This is an issue of significant concern for New Zealand. As a small, export-dependent country we rely on legal rules and processes to advance and defend our interests.”
New Zealand is particularly vulnerable to global economic shifts,” Kalderimis said. “Fortunately, commodity prices for our key exports have remained reasonably strong to date despite global uncertainty.
“We are also an innovation hub and that gives us good reason to be optimistic.”
Despite the uncertainty, there were success stories and positive and exciting developments in 2019, he says.
These include the conclusion of the NZ-China Free Trade Agreement upgrade, talks initiated on a climate change and trade agreement, the digital economic partnership with Singapore and Chile, and continued success on the world stage for ground breaking New Zealand companies.
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
Dignitaries from all walks of life – the governor general, politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.
Agriculture and Forestry Minister, Todd McClay is encouraging farmers, growers, and foresters not to take unnecessary risks, asking that they heed weather warnings today.
With nearly two million underutilised dairy calves born annually and the beef price outlook strong, New Zealand’s opportunity to build a scalable dairy-beef system is now.

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