Economics and trade

NZ agriculture groups urge WTO rescue at global forums

[23 January/Radio NZ] Seven major agricultural organisations are urging the government to use forums like the World Economic Forum meeting of global government and business leaders in Davos to try to rescue the World Trade Organisation (WTO). Prime Minister Jacinda Ardern used the WEF meeting to speak about issues like climate change and New Zealand’s...

UK veterinary agreement ensures status quo for exporters

[25 January/The Country] The signing of a veterinary agreement between the UK and New Zealand during the Prime Minister’s recent visit to London should provide reassurance to farmers and exporters about trade after Brexit according to Beef + Lamb NZ and Meat Industry Association. In a joint statement, the organisations Chief Executive’s said the signing...

China watchers cautious for 2019

[23 January/Farmers Weekly] The economic slowdown in China and damage from its trade war with the United States could impact prices for New Zealand’s major export commodities this year according to analysts. Westpac senior economist Anne Boniface highlighted lamb, noting that Chinese demand for the product appears to have been little affected by the economic...

Ardern acknowledges hard Brexit could be difficult for New Zealand businesses

[21 January/NZ Herald] While in London, Prime Minister Jacinda Ardern acknowledged if Britain left the European Union (EU) on 29 March with a hard exit and no deal in place, it would be damaging for New Zealand businesses. If this scenario eventuates the New Zealand government’s focus would be on supporting businesses through the shift....

CPTPP nations meet in Tokyo for first commission meeting

[20 January/NZ Herald] Trade Minister David Parker is in Tokyo for the first CPTPP commission meeting. The CPTPP is open to all economies which accept its principles, signatory countries have agreed at their first commission meeting in Tokyo. Seven of the eleven CPTPP countries have ratified the agreement including Australia, Canada, Japan and Singapore. The...

Slowing likely to weigh on prices

[12 January/Otago Daily Times] Slowing Chinese growth is likely to put pressure on New Zealand commodity prices this year, ASB senior rural economist Nathan Penny reported. This year’s outlook followed relatively positive prices throughout last year. The average level of prices last year was comfortably above the 10-year average in both USD and NZD terms....

The CPTPP: What does it mean for New Zealand?

[December 31/Stuff] The CPTPP came in to effect on 31 December. The trade agreement enhances New Zealand exporter’s access to many new markets including Japan, Mexico and Canada. Executive Director of ExportNZ, Catherine Beard, said that New Zealand would benefit from $222 million in tariff savings yearly. This will enable more money to be available...

Regional economies on the rise

[29 December/Radio NZ]   Infometrics Quarterly Economic Monitor for the 12 months ending September 2018 reported growth in the regions as strong, noting the Hawke’s Bay, Manawatu-Wanganui and Nelson-Tasman economies with growth faster than Auckland, Wellington and Christchurch. Hawke’s Bay’s GDP increased 3.1 percent, Manawatu-Wanganui 3.8 percent, and Nelson-Tasman’s growth was up 3.2 percent in...

Record-high primary sector exports forecast

[13 December/The Country] Agriculture Minister, Damien O’Connor, expects New Zealand’s primary sector exports are set to reach a record high over the coming year based on figures in the Ministry for Primary Industries’ latest Situation and Outlook report.  The report forecasts a 3.8% increase in export earnings for the year ending June 2019 to $44.3billion...

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...