Economics and trade

NZ dairy group joins fight to try and save WTO

[30 November/Radio NZ] The Dairy Companies Association of New Zealand was joined with other peak dairy organisations across the world to launched an unprecedented campaign to try and save the World Trade Organisation (WTO). The move is in response to steps taken by the Trump administration to block the appointment of new judges to the...

Annual trade deficit largest since 2007

[28 November/Otago Daily Times] Imports far outweighed exports for October, taking the annual trade deficit to $5.8 billion, its largest deficit since October 2007. With exports dipping 6.4% month on month and the cost of imports increasing as a result of a then low New Zealand dollar and increased imported fuel costs. Statistics New Zealand...

‘Cold war’ could force choice

[17 November/Otago Daily Times] New Zealand’s agricultural sector is being advised to look for alternate trading markets with the developing “cold war” between the US and China. The increasing trade tensions between the superpowers could produce a situation in which New Zealand is forced to choose sides, Rabobank’s head of financial markets research for Asia-Pacific,...

A2 milk and NZ lamb a winner on Alibaba’s Singles’ Day

[12 November/Stuff] Lots of New Zealand milk and lamb changed hands during Singles Day (11/11) as the Chinese internet giant Alibaba broke all one day sale records again during the country’s biggest shopping day.  China’s answer to the online Cyber Monday and America’s post-Thanksgiving “Black Friday” generated USD30.8 billion of sales this year. Singles’ Day...

Another hit for NZ’s returns

[10 November/Otago Daily Times] The drop in New Zealand dollar during October was not enough to offset the decline in commodity prices resulting in a fifth consecutive monthly fall in the ANZ world commodity price index.  The 2.4% decrease in October was identical to September’s result. The annual growth rate in prices is down 5.6%...

Renewed FTA deal unlikely to bear more benefits for dairy industry

[6 November/Radio NZ Rural] New Zealand looks unlikely to secure a better deal for dairy exporters as part of the renegotiation of the China NZ Free Trade Agreement. The agreement currently results in NZ dairy exports being hit with higher tariffs when specified volumes have been supplied and these limits are due to expire in...

Kiwi exporters largely upbeat but challenges ahead

[29 October/NZ Herald] According to the 2018 ExportNZ DHL Export Barometer, New Zealand exporters were largely optimistic despite tensions around international trade. It showed over half of the respondents had increased international orders, while 60 percent were optimistic overseas orders would increase. ExportNZ Executive Director, Catherine Beard, said exporters should be prepared for any new...

Red meat sector welcomes CPTPP ratification

[29 October/The Country] The red meat sector welcomed the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). New Zealand was the fourth country to complete the ratification process. The agreement required at least six countries to ratify the agreement before it could come into force. New Zealand sheep and beef sector exports...

Kiwifruit sales to boost horticulture exports

[16 October/NZ Herald] According to Government forecasts, horticulture was expected to be New Zealand’s fastest growing primary export sector over the next year. The Ministry for Primary Industries said horticulture exports were forecast to increase by 13.1 percent in the year ending June 2019. Kiwifruit export revenue was expected to increase 23 percent due to...

Country of Origin labelling a step closer to law

[20 October/The Country] Horticulture New Zealand was excited that mandatory Country of Origin labelling for fruit and vegetables was a step closer. The second reading of the Consumers’ Right to Know Bill passed Parliament. Horticulture New Zealand Chief Executive, Mike Chapman, said their research showed over 70 percent of New Zealanders wanted mandatory labelling on...

Strong second-quarter GDP growth lessens case for RBNZ rate cut

[20 September/The Country] The New Zealand economy grew the most over in two years over the June quarter. The 1 percent quarterly GDP gain was not expected by the Reserve Bank. The NZ dollar reacted, increasing by over half a U.S. cent. Economists expected the Reserve Bank to review its official cash rate if growth...

NZ economy may not be as slow as business confidence suggests – for now

[17 September/Stuff] Statistics New Zealand will release figures on how fast the NZ economy grew in the three months to June 30 later this week. Increased farm production during autumn may have seen strong growth in the quarter, however any disappointment could lead towards an interest rate cut. Despite headlines of weak business confidence and...

Higher dairy export prices boost terms of trade

[6 September/Radio NZ] New Zealand’s purchasing power with the rest of the world rose in the last quarter due to higher dairy prices. The terms of trade increased 0.6 percent in the three months to June. ASB Senior Economist, Mark Smith, said the terms of trade were now only 1.4 percent below the late 2017...

New Zealand Business Roundtable in China Formally Launched

[5 September/NZBRiC] The New Zealand Business Roundtable in China was launched in Shanghai on 5 September. The event was attended by senior members of the New Zealand business community in Shanghai. The Board Chair, Kevin Parish, said it was a representational platform led by New Zealand business and would advocate for key interests on behalf...

Huge China-backed free trade deal could be signed as early as November

[3 September/NZ Herald] The ongoing trade war and a thaw in ties between China and Japan raised prospects for the world’s biggest regional free trade deal. Singaporean Trade and Industry Minister, Chan Chun Sing, said negotiators from 16 likely signatories of the China-backed Regional Comprehensive Economic Partnership agreed on key elements of the deal at...

$4.44b annual trade balance highest in nine years

[27 August/Otago Daily Times] New Zealand’s trade deficit hit a nine year high of $4.44 billion. This was mainly due to export volumes being stronger than expected. According to Statistics NZ International Statistics Manager, Tehseen Islam, oil prices and a weakened New Zealand dollar were contributing factors, and imports and exports were both up for...

Weaker kiwi raising NZ commodity prices in local terms

[20 August/Otago Daily Times] According to ASB Senior Rural Economist, Nathan Penny, a weakened New Zealand dollar is boosting commodity prices in local terms. The Commodity Price Index had lifted 8.3 percent annually in New Zealand terms. Fonterra dropped its forecast from $6.75 per kilogram of milk solids to $6.70. Mr Penny noted the Chinese...

US stance on Iran won’t apply to NZ – David Parker

[8 August/Radio NZ] The Government is confident the U.S’s stance on firms doing business with Iran would not apply to New Zealand. President Trump re-imposed sanctions against Iran and suggested other nations should follow his lead. He added those who didn’t would not be able to do business with the U.S. Trade Minister, David Parker,...

Govt seeks input on trade policy

[8 August/Otago Daily Times] Trade and Export Growth Minister, David Parker, has launched a review of New Zealand’s trade policy under a Trade for All agenda.  The Government is inviting all New Zealanders to have their say on what to them on trade policy and in trade agreements.  He said trade policy was integral to...

Trade imbalance tops $4 billion in year

[26 July/Otago Daily Times] New Zealand’s annual trade deficit is over $4 billion. This was largely due to a weakening in dairy export values widening the gap. New Zealand’s annual imports increased by $6.02 billion whereas exports rose by $5.65 billion. ASB’s Senior Rural Economist, Nathan Penny, said the balance was weaker than expected and...

EU and New Zealand launch trade talks in face of trade wars

[21 June/NZ Herald] Trade talks between New Zealand and the European Union have been formally launched in Wellington with the EU Trade Commissioner, Cecilia Malmstrom, saying she was confident a compromise could be reached on issues such as agriculture. Trade Minister, David Parker, hoped a trade agreement could be in place within two years. It...

Northland’s simmering summer is Taranaki’s scorched earth: ASB regional scorecard

 [7 June/NZ Herald] Northland’s summer outperformed the rest of the country, and it climbed to the top of the latest ASB Regional Economic Scorecard. It measures regional performance in terms of growth across 11 measures. ASB Chief Economics, Nick Tuffley, said strong growth across all the measures had been key to Northland’s success. He added...

New Zealand needs a food integrity story

[28 May/Farmers Weekly] According to agricultural trade envoy, Mike Petersen, New Zealand has a role to play in helping other countries with food security, business futures and innovation. He added food security was a real issue for many countries, but as we have an abundance of food in New Zealand and we don’t take security...

‘Unrealistic’ to expect EU to ditch all agricultural tariffs, business body warns

[23 May/Stuff] The New Zealand Europe Business Council said a free-trade deal between the EU and New Zealand could boost exports by $2 billion a year and save New Zealanders hundreds of millions of dollars a year in cheaper imports. Its president, Franck Olssen, forecasted an agreement could be produced in two years. He noted...