$2b boost in NZ exports to EU
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
They are crossing their fingers that NZ will somehow avoid the wrath that Trump has inflicted on Canada, Mexico and to a slightly lesser degree on China, while leaving the supposed enemy, Russia unscathed. Trump and his hatchet team have thrown the whole world into chaos, yet, unbelievably, many Americans think they are right.
The strategy from NZ thus far has been to be a 'stealth fighter jet' and remain unseen by Trump's radar. But how long will this be possible? NZ has a few things going for it, starting with the fact that we don't have a major trade imbalance with the US. And maybe being small is helpful - who knows?
The problem for NZ is that the US has grown in importance as a market for our meat, so yes, we do need the US, probably more than they need us.
Prime Minister Christopher Luxon's comments on the Trump administration have been carefully phrased so as not to offend. He has wisely taken the line of his officials, avoiding at all costs any comments that might offend or spark a negative response to NZ.
But despite this delicate diplomacy, the chances are that through no fault of its own, NZ will likely get caught in the crossfire between the US and the other countries it is targeting.
Opposition leader Chris Hipkins has said it's unlikely that NZ will get off scot-free in the turmoil that Donald Trump is creating. If any of NZ's trading partners suffer economically from what is happening, we too will likely suffer.
As of now, the Government is playing its cards right with the US and one can only hope this helps mitigate any major damage to our economy.
