Hon Phil Goff
Minister of Trade
31 March 2008
Good potential for growth in trade with Turkey –
new study
See Also:
A study of the economic relationship between New Zealand and Turkey shows there is good potential for growth in
bilateral trade between our countries, Trade Minister Phil Goff said today at its launch.
“The New Zealand-Turkey Economic Stocktake is the result of a ministerial New Zealand-Turkey Joint Economic Commission
meeting in 2006 between myself and Turkey’s then Deputy Prime Minister Abdullatif Sener,” Mr Goff said.
“The stocktake has produced three conclusions. Firstly, that both New Zealand and Turkey’s economies have performed well
in the past few years. Secondly, there is ample scope to grow our bilateral trade opportunities, and thirdly, the
removal of trade barriers would greatly assist this trade growth.
“Turkey is one of the fastest growing economies in the OECD and its economic reforms and improvements to its regulatory
regime have been impressive. This presents real opportunities for New Zealand businesses.
“Trade with Turkey, currently in Turkey’s favour, has almost tripled since 1990, to about $150 million last year. As the
stocktake makes clear, two-way trade can grow further and grow faster.
“Agriculture is an important area where the relationship can develop. New Zealand wool, hides and skins have been our
main exports to Turkey, but Turkey is also a significant consumer of dairy products and dairy consumption is forecast to
grow substantially over the next decade.
“The stocktake identifies key lessons learned from New Zealand’s experience of agriculture reform and it is encouraging
to see that reforms are underway in Turkey’s agriculture sector. The removal of tariffs and subsidies – such as 70-100
per cent for dairy products – is important if Turkey’s agriculture sector is to fully modernise. This would also, of
course, considerably assist New Zealand’s primary sector exports.
“The stocktake also identifies valuable growth prospects in areas such as services, high technology and specialised
manufacturing.
“One recent example of this is the strategic partnership between Fisher and Paykel and a Turkish manufacturer, which
will allow Fisher and Paykel to distribute it appliances through the Turkish company’s extensive Middle East and
European networks.
“Our education relationship is also developing. The University of Waikato has been active in developing linkages with
Turkish universities, and both countries have recently signed a bilateral Education Cooperation Agreement, which
provides a framework for closer policy engagement and information exchange.
“In other areas, our bilateral arrangement on cooperation on sanitary matters is ready for signing, we’re progressing
negotiating a Double Taxation Agreement, and an air services agreement and working holiday scheme are under
consideration,” Mr Goff said.
The New Zealand-Turkey Joint Economic Commission has met regularly since 1991.
ENDS