How to seize the best investment opportunities in global trade from New Zealand

Tucked away in the South Pacific, New Zealand is far from most countries and has long had a relatively low profile in global politics and economics. In recent years, however, it has attracted growing attention from the world’s economic powers and achieved significant results in international trade cooperation. As ordinary New Zealand business owners and small and medium-sized investors, how can we find opportunities amid these changing times?

New Zealand–China trade delivers substantial results

 

As is widely recognised, practical cooperation between New Zealand and China has delivered substantial results in recent years in trade, people-to-people exchanges, connectivity and infrastructure. The two economies are highly interdependent and have complementary strengths. China has remained New Zealand’s largest trading partner, export market and source of imports for many years. In 2022, the Regional Comprehensive Economic Partnership and the protocol upgrading the China–New Zealand Free Trade Agreement officially took effect, giving further momentum to bilateral trade and economic cooperation. In the first quarter of this year, trade in goods and services between New Zealand and China totalled NZ$9,380,000,000, comprising New Zealand exports to China of NZ$5,290,000,000 and imports from China of NZ$4,090,000,000.

 

From 25 to 30 in month 6 of 2023, New Zealand Prime Minister Hipkins made his first official visit to China since taking office. During the visit, he described the current New Zealand–China relationship as “very positive and constructive”. The scope for Chinese businesses to grow in New Zealand is notable, with extensive future investment opportunities in agriculture, food, tourism, education, advanced environmental technologies and infrastructure.

 

New Zealand Prime Minister Hipkins’ visit to China this year

Global trade cooperation makes steady progress

 

Beyond China, New Zealand has also performed strongly in international trade. On 16 July, at a ministerial meeting in Auckland, members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) formally approved the United Kingdom’s accession. Following almost two years of negotiations, the UK government also formally signed the accession protocol. The UK thus became the first European country to join the agreement since it was signed in 2018. It is also the largest trade agreement the UK has joined since Brexit.

 

The UK’s Business and Trade Secretary recently signed the CPTPP accession agreement in New Zealand

 

New Zealand holds the rotating chair this year. Prime Minister Chris Hipkins said that major economies joining the CPTPP would help improve links between the Atlantic and the Indo-Pacific, strengthening the trading system within the region’s regulatory framework. The CPTPP currently has 11 members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. With the UK’s accession, the combined gross domestic product (GDP) of CPTPP members reaches US$157,000, increasing their share of global GDP from 12% to 15%.

 

How can we respond to New Zealand’s wave of import and export activity?

 

New Zealand is a highly developed capitalist country with a strongly outward-oriented economy. It is also one of the few developed OECD economies founded on agriculture and one of the world’s leading agricultural exporters. In recent years, New Zealand has consistently been among the OECD countries with sustained economic growth, relatively low unemployment, moderate inflation and a comparatively strong currency. In the World Bank’s recent global Doing Business reports, New Zealand has consistently ranked among the leaders across 190 economies. It also ranks first globally in investor protection, integrity and opposition to protectionism, making it one of the world’s most competitive small but successful economies.

 

This raises a question: with international trade accounting for as much as 60% of New Zealand’s overall economic activity, how can we seize global trade investment opportunities in emerging markets while taking pride in the strength and sustainable growth of our exports? As ordinary local business owners and small and medium-sized investors, how can we secure a share of the benefits through cooperation?

 

An opportunity is here: the Employers and Manufacturers Association (EMA) is partnering with BNZ to host a seminar in its “New Zealand Export Trade” event series, chaired by EMA chief executive Brett O’Riley.

 

Brett will draw on his recent experiences visiting India and China as part of New Zealand trade delegations and engaging with the APEC Business Advisory Council, discussing the following key topics:

 

• Opportunities and challenges in trade and investment in India and Asia
• A preview of APEC Leaders’ Week activities in San Francisco in month 11 this year 
• Global trade platforms and our relationship with Alibaba
• The implications of the Indo-Pacific Economic Framework, the Asian Development Bank’s climate change fund and free trade agreements

 

The seminar will analyse the latest developments and trends in international trade and explore many issues crucial to import and export businesses, offering useful insights for New Zealand exporters. Details of the Auckland seminar are as follows:

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Time: 4 October, 4:00–6:00pm

Venue: EMA Business Hub, 145 Khyber Pass Road, Grafton, Auckland

 

Attendance is free. EMA members can register by scanning the QR code below. If you are not an EMA member,

please email exportnz@ema.co.nz to register.