Philippines-New Zealand Business Council meeting, Manila
Ladies and Gentlemen: I am very pleased to finally be in Manila as part of a brief swing through South East Asia. Asia
is traditionally a very important export region for New Zealand and one that continues to evolve and to offer
increasingly diversified opportunities for our products and services.
Although I have not previously made it to Manila, New Zealand is in regular dialogue with the Philippines on trade-based
issues. We're fortunate that there aren't many bilateral problems to be worked through.
We are also both members of regional bodies that handle trade issues such as APEC, the Cairns Group, and the nascent
AFTA-CER project. I will be returning to these later in my comments.
Only Malaysia in South East Asia imports more from New Zealand than the Philippines. Your country is the thirteenth
largest market for NZ exports.
The NZ$480 million we sold to the Philippines last year was dominated by dairy products. However, I understand that an
increasingly diverse range of NZ product is coming into the market and that quite a few companies are active in the
consultancy and services areas.
Of course the dairy industry is our biggest export dollar area and, while it has gone through some major changes over
the past few years, it is likely to remain our biggest earner. The pursuit of new high value products made from milk is
relentless and essential if we are to stay at the forefront of the international dairy market, we still depend on
markets to take up a lot of the basic dairy commodity product.
The Philippines is a major market for the essential basic dairy food that we all need. But as time goes on, and the
range of products available increases, other dairy products will become important as well.
We've seen this in other markets as they grow. I understand that NZ Dairy Foods has recently launched a range of fresh
New Zealand dairy products onto the local market here. I probably don't need to tell you just how important dairy giant
Fonterra is to New Zealand. Over 65% of New Zealand export revenues come from agriculture. The dairy industry accounts
for 20% of export earnings, or one of every five dollars New Zealand earns.
New Zealand is a trading nation. We depend on our export earnings in order to maintain our living standards.
So our business links overseas are especially important to us and I am always pleased to come across associations such
as the Phippines-New Zealand Business Council that support and encourage commercial links with New Zealand in offshore
locations.
Increasingly too, these associations are mainly local in nature and membership. I know too, that Kiwis turn up in all
sorts of places round the world, though perhaps not now quite so much as do Filipinos, but there aren't that many of us
to go round so we do need to active support and enthusiasm of more local business associations such as yours to help
with promotion.
And of course to help you in your businesses too. Functioning effectively, the PNZBC has the potential to enhance
business networks going both ways and lead to new and perhaps unexpected opportunities for all involved.
TradeNZ has a small team here in Manila, led by Net Bernales. They're doing a great job. Net was one of the first
localised Trade Commissioners and has more than proved his worth in this market.
Back home in New Zealand, Trade NZ is being merged with another organization Industry New Zealand. This new body, New
Zealand Trade and Enterprise, will provide a one-stop shop for businesses in New Zealand looking to grow and become
exporters.
We're looking for efficiencies.
What does it mean for you here in Manila? Very little. There may be a new name on the door ? possibly later rather than
sooner ? but there will continue to be an office here, doing the same trade development work for New Zealand.
We have a pretty good relationship. There are not many irritants in Philippine / New Zealand relations. When they do
arise, it is important to keep them in perspective. We all want minimal disruption to trade, and to work in a stable
business environment.
Accordingly, I have been emphasizing the importance of a clear regulatory structure to the Secretaries I have been
calling on here. I have also been taking the opportunity to make representations on measures such as MO7, which New
Zealand sees as trade-inhibiting.
New Zealand's export focus, and its strategies for both trade promotion and trade policy, need to improve market access
alongside building domestic capacity.
New Zealand is working smart and finding innovative ways to stay ahead of competitors especially for the dollars at the
high end of the market.
As a small nation, we have a limited promotional budget, especially for the wide spread of export markets, so we need to
take advantage of every opportunity to promote New Zealand and thus New Zealand products. Things we have used recently
include activities around the Lord of the Rings trilogy of films and the Americas Cup yachting competition. The Prime
Minister's starring role in a Discovery channel documentary was useful as well, as wash New Zealand being named the
world's top destination by Lonely Planet travellers' guides.
Tourism is a big market for us. Currently, it is booming . We hope that visitors will take back fond memories of their
visit to New Zealand ? and perhaps also a taste for our quality food products and leisure wear.
New Zealand is a small country, but I know we offer a high-quality product. Whether you're looking for safe, tasty food,
innovative ideas and technology, or high value services, New Zealand can provide. Together, we can do business that
helps us both.
Thank you all very much for giving me the opportunity to be with you this evening. I would be happy to respond to any
questions or comments.