Hon Todd McClay
Minister for Trade

Good morning and thank you Deputy Vice Chancellor Lithander for your warm welcome and for inviting me to open Auckland Trade and Economic Policy School today.

A Special thanks to the University of Auckland, the Ministry of Foreign Affairs and Trade and the British High Commission for arranging this event.

Welcome to the diplomatic core, and delegates in the room, it is great to see you here.

I have just returned from APEC in Lima where global economic challenges and pressure on trade rules were front and centre, but there was also a quiet optimism and energy to get on, and get things done.

The Prime Minister has made his ambition clear; he wants New Zealand to be a world-leading, small-advanced economy by 2040.

To meet this, we have set an aspirational target to double the value of our exports in 10 years.

To achieve double export value, we are:

1. Securing new, diversified, and high-quality trade agreements,
2. upgrading and enhancing the implementation of those agreements we already have, and
3. targeting Non Tariff Barriers (NTBs) and Technical Barriers to Trade (TBTs)

Already it has been a big year for trade.

In May, the European Union free-trade agreement (FTA) entered into force many months sooner than predicted, providing $46 million of tariffs saved for Kiwi exporters this year that they would otherwise have missed out on.

In September, we concluded the New Zealand - United Arab Emirates Comprehensive Economic Partnership Agreement, our first FTA in the Middle East, giving Kiwi exporters commercial advantage in that growing market. The agreement was negotiated in just over four months and delivers 98.5 percent tariff elimination on New Zealand exports on entry into force, rising to 99 percent after three years.

Last month, we concluded a trade agreement with the Gulf Cooperation Council (GCC)—unfinished business for successive Governments over 18 years—with a particular focus on goods and services trade. The Agreement includes provisions that will make doing business easier, with preferential access for our primary sector exporters, streamlined customs procedures, reduced trade barriers, and commitments to level the playing field for Kiwi services businesses entering the market. It also delivers duty-free access for 99 percent of New Zealand's exports over 10 years, and when combined with the UAE agreement removes tariffs on 51 percent of our exports to the Gulf on day one.

These two agreements secure market access in a highly competitive market for beef, lamb, dairy, manuka honey, fish, and many, many other goods, and contribute towards their ambitious goal of doubling exports by value over 10 years.

Both agreements also include chapters and provisions on intellectual property; transparency and trade and sustainability of sustainable development; and includes commitments to international labour standards, climate, and women's economic empowerment, committing to the Convention on the Elimination of All Forms of Discrimination against Women. New Zealand also secured our Treaty of Waitangi exception to allow us to meet Treaty obligations.

And finally, just last week, at APEC in Peru, we signed the agreement on trade with sustainability (ACCTS) with Costa Rica, Iceland, and Switzerland; particularly good for our sheep farmers and wood producers.

Growing New Zealand's trade relationships is part of the Government's plan to grow the economy, lift incomes for all Kiwis, and create jobs.

We are also working hard to facilitate trade at a business to business and people to people level.

This year we have led 8 trade missions with delegates representing 128 NZ businesses to: Brazil, China, Japan, Malaysia, the Philippines, Singapore, South Korea, Thailand, and the US.

These missions resulted in 105 commercial outcomes worth millions of dollars. Most notably in just the last month 13 Memorandums of Understandings signed in Brazil resulted in $100 million worth of partnerships for emerging companies in the tech and agribusiness space, and 24 partnerships worth $340 million from the delegation of nearly 70 New Zealand companies that attended the China International Import Expo (CIIE).

Continuing this ambition and hustle next year we are delivering on our campaign promise to deliver more trade missions than any other government, preparing more trade missions to help business harness market access secured through new Trade Agreements.

We have set out a plan to complete over 20 missions this term.

The international trade environment is challenging but global demand for high-quality, safe, products is sky-high, and New Zealand is well positioned to supply these.

Beyond trade deals we are also focused on removing Non Tariff Barriers (NTBs) and Technical Barriers to Trade (TBTs).

This year we have resolved 16 barriers affecting over $733 million worth of exports including:

• Reduced regulatory burdens for wine and spirits exporters, including expanded labelling flexibility, with the EU.
• Resolved a barrier on medical devices exports to Mexico.
• Restored onion exports to Indonesia, NZ’s largest onion market, through streamlined phytosanitary certification.
• Restored access for up to $250 million worth of log exports to India
• Extended tariff free access for New Zealand’s digital exports to all WTO members.
• Resolved compliance measures to secure Blueberry access to Korea.
• Restored $88 million worth of frozen deer velvet exports to the valuable Chinese market.
• Achieved a 12-month reprieve of costly EU Deforestation regulations – saving our famers and industry $200 million next year.

We won’t stop there, next year we will target over $900 million in NTBs including:

• A permanent exemption to EU Deforestation regulations
• A ban on structural timber exports to Australia
• Restrictions on cosmetics exports to China
• And we will continue to take action against Canadian dairy restrictions

Already we have shown we will stand up for our exporters and fight for our trade access when it is hindered.

Canada continues to fail to meet its obligations to New Zealand under the CPTPP agreement in respect of dairy exports to Canada.

Last year New Zealand started a formal dispute procedure under this agreement with Canada with a panel ruling in our favour.

Unfortunately, Canada continues to not comply with their obligations and as a result New Zealand dairy farmers are missing out on market access that was negotiated and granted under the CPTPP.

This is a matter of principle; New Zealand takes its obligations seriously and we expect others to also do so. We will stand up for New Zealand farmers and exporters.

We have therefore taken further action which forces Canada to meet with us formally to make changes or pay NZ compensation for the trade harm they have caused.

The ball is now squarely in their court. The New Zealand government reserves the right to take any action we deem appropriate including imposing tariffs sanctions on Canadian exports to New Zealand.

Time is running out for Canada to honour their obligations to New Zealand farmers.

Conclusion

The world has always been a challenging place to do business, but New Zealand has a unique opportunity to get out, hustle and carve out opportunities that elevate our relative competitiveness.

We have a history of being everywhere all the time so others can’t say no. To stay relevant, we need to continue this, to invest in relational, not transactional relationships – and already we are seeing this work with more engagement at all levels across the Indian system.

New Zealand has a lot to offer the world, and the Government is committed helping facilitate international business we can double our trade value, grow the economy, lift incomes, and create jobs.

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