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In This Edition
Forum Trade Ministers will meet to discuss a negotiations framework for PACER Plus - a trade and economic development agreement between Australia, New Zealand and Pacific Forum Island Countries. PACER Plus forms part of a wider process of regional economic integration and trade liberalisation provided for in the existing Pacific Agreement on Closer Economic Relations (PACER). The meeting will be held in Brisbane, Australia 23-24 October.
The forthcoming discussions are likely to be preliminary in nature but will cover issues such as the arrangements and timetable for negotiations and possible coverage of the agreement. The Chief Trade Adviser will assist Forum Island Countries in their preparations for and participation in PACER Plus negotiations.
New Zealand’s objective in pursuing PACER Plus will be to ensure that the agreement promotes sustainable economic growth in the Pacific, by assisting Pacific Island Countries to capitalise on their potential for trade. Our vision is for an agreement that will equip Pacific Island Countries to better withstand external shocks, to raise standards of living, to increase jobs and export capacity in the region, and to address the significant trade imbalance that currently exists between the Pacific and New Zealand.
As a trade and economic agreement, PACER Plus will create a new framework under which the private sector will operate. Engagement with the private sector and other national interest groups throughout the negotiations will therefore be critical to ensuring the success of PACER Plus.
The Ministry of Foreign Affairs is calling for public submissions to help shape New Zealand’s negotiating mandate for the trade talks. The closing date for the first call for public submissions is 16 November. The public consultation process is an ongoing one that will provide further opportunities for input and comment on the talks. Please visit www.mfat.govt.nz for further information on making a submission on PACER Plus negotiations
• For further information contact: Matthew Aileone, Pacific Division, matthew.aileone@mfat.govt.nz or +64 4 439 8782.top of page
The services sector is the largest and most dynamic component of both developed and developing country economies. In New Zealand’s case the services sector makes up 71% of our economic profile and contributes 26% to our export profile.
The range of services New Zealand exports is wide, and covers the following areas: telecommunications, construction/engineering, distribution, education, environmental, financial, health, tourism/travel, recreational/cultural and transport. New Zealand companies export services in a variety of ways, described as ‘modes’ by services negotiators. There are four modes of service provision: 1) The service provider may be based in New Zealand and supply their services overseas, such as an architect in Auckland supplying plans to a client in Singapore; 2) A consumer may travel outside their country to obtain a service, such as a tertiary student from Hong Kong travelling to Dunedin to study – while it may not seem evident that this is an exporting activity, it is still regarded as a ‘service export’; 3) A business could set up an affiliate overseas, such as a New Zealand engineering firm establishing a branch in China to provide engineering services to Chinese customers or; 4) an individual might temporarily visit another country to provide a service, such as a New Zealand rugby coach visiting Japan for several months to train Japanese players.
To help our services exports to grow, the New Zealand Government seeks to reduce the barriers to trade imposed by our trading partners through free trade agreement negotiations. Some of the more common barriers to trade which we seek to remove include: ownership restrictions (e.g. limit of 50% foreign ownership in a sector or mandatory joint ventures); outright bans on foreign investment in certain sectors; restrictions on the numbers of foreign firms in a market; restrictions on the numbers of foreigners that may work in certain services sectors; requirements to be a citizen or resident of a country in order to provide a particular service in that market; failure to recognise New Zealand’s qualifications and occupational registration; and discriminatory licensing requirements (eg. where foreigners are subjected to different licensing requirements for providing services). We also seek transparent and timely commitments to facilitate the movement of business people (through visa .
So that we are better aware of the barriers to trade faced by New Zealand companies exporting services, the Ministry of Foreign Affairs and Trade is undertaking consultations with service suppliers, and has already contacted some companies directly. We would welcome any information these companies, or any other New Zealand companies exporting services, can provide in order to inform our future negotiations.
• If you would like further information, or would be interested in sharing your experiences, please contact Amy Prebble in the Trade Negotiations Division, amy.prebble@mfat.govt.nz, +64 4 439 8301.
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The School of Marketing and International Business at Victoria University, along with researchers from Otago University and independent research collaborators, is undertaking a two year research study into the success of New Zealand’s services trade into Asia The study is entitled “Building a sustainable competitive advantage for New Zealand service firms in Asia: Spotlight on China and India”
The objectives of the project, which is being funded by a grant from the Foundation for Research, Science and Technology, are to identify the characteristics of success and failure of NZ service firms operating in Asia (especially India and China) and to ascertain the role of the firms’ networks and diaspora links in their performance. By highlighting the potential of Asian markets, and identifying the key success factors for businesses, the project will help to provide pathways for managers and policy-makers to build successful businesses in Asia.The project team will be publishing regular newsletters to update the business community on their progress. The first newsletter can be accessed here: School of Marketing and International Business, Victoria University. You can also register to receive future newsletters on the home page of this website.
For more information about the project go to: Service Success in Asia, SMIB, Victoria University or contact: International-Services-Research@vuw.ac.nz
A reminder to mark your calendars for the “Brazil Business Forum” to be held in Auckland on 17 November, Wellington on 18 November, and Christchurch on 19 November. The Forum will focus on the opportunities and challenges for two-way business and investment between New Zealand and Brazil.
The opportunities represented by Brazil can be seen in its economic trajectory. Brazil is currently the 10th largest economy in the world with a GDP of US $1.3 trillion and is projected to become the fifth largest economy by 2050. Unlike the other emerging economies (such as China or India), however, Brazil's economic growth is based significantly on domestic demand, and accompanied by relatively high GDP per capita.
The upcoming "Brazil Business Forum" will be chaired by Sir Don McKinnon and will be addressed by the Minister of Trade, the Hon Tim Groser. The Forum will include an address by Mário Marconini, from the powerful Federation of Industries of São Paulo, as well as a Brazilian Government speaker. It will also feature a line-up of successful business people and economic commentators from both Brazil and New Zealand.
The Forum is a Latin America-New Zealand Business Council initiative in conjunction with Auckland University of Technology. It is supported by the Ministry of Foreign Affairs and Trade, New Zealand Trade and Enterprise and the Brazilian Embassy in Wellington and commercial sponsors.
Established under the provisions of the New Zealand – China Free Trade Agreement (FTA), the Joint Commission meets annually to assess progress and address implementation issues. It involves a wide range of government agencies from both countries.
The first meeting of the Joint Commission was held in Wellington on 19-20 August. A large Chinese delegation included representatives of the Ministry of Commerce, Ministry of Agriculture, Customs Administration, General Administration of Quality Supervision, Inspection and Quarantine, Ministry of Finance and Ministry of Foreign Affairs.
Both sides agreed that good progress had been made since the FTA entered into force on 1 October 2008. This included two rounds of tariff cuts, the establishment of a New Zealand tariff quota for wool and wide ranging engagement across the FTA’s chapters. The strong performance of two-way trade at a time of global economic crisis, reflected in an overall 25% increase, was welcomed. The FTA was also welcomed as an instrument in opposing protectionism. Cooperation activities, particularly in the areas of food safety and agriculture, were discussed.
The Joint Commission noted the triggering of the Special Agricultural Safeguards for New Zealand dairy exports in 2009, and also provided an opportunity to seek more information on China’s recently-introduced administrative measures for monitoring dairy imports.
We outlined the problems some New Zealand exporters have experienced with the FTA’s Certificates of Origin and goods transhipped through third countries. The Chinese Customs administration undertook to distribute clear instructions to its ports on how transhipped goods should be handled.
The Committee on the Movement of Natural Persons also met and discussed the setting of visa fees in each country, transit visas for officials, the temporary employment entry provisions of the FTA, and the Working Holiday Scheme for young Chinese nationals.
• For further information or to provide comment, please contact Sally Page, Asia Division, sally.page@mfat.govt.nz or +64 4 439 8450.
The Gulf Cooperation Council has confirmed it will attend a sixth round of FTA negotiations from 26-30 October, to be held in Wellington.
Following excellent progress across most sectors at round five in Muscat in May, both sides agreed to aim for conclusion of negotiations at round six, though a significant amount of work is needed on some issues. Intersessional meetings will take place on some chapters before round six.
The Korea Australia New Zealand Broadband Summit is being held in Auckland this year and will have a strong commercial appeal focusing on the economic outcomes that result from robust high-speed broadband infrastructure.
The Summit is an annual forum for business and government officials from the three countries to come together to discuss the latest research and commercial developments in digital applications and content and broadband infrastructure. The Summit will provide delegates with opportunities to establish new collaborative ventures and develop wider trade relationships between the three countries.
Summit topics will include: New businesses spawned from broadband; how broadband is accelerating and transforming traditional business; the impact of broadband - beyond connectivity and economics; services and applications; policy and regulation; the impact of ICT on green energy, carbon emissions; digital content, online gaming, remote applications; cyber safety and security; research and development and the digital future; cloud computing; mobile applications ; visual business intelligence; and robotics and high precision GPS.
The KANZ Broadband Summit: Digital Futures will bring together government officials and business leaders from commercial and research organisations who are shaping the policy, infrastructure and commercial futures of Korea, Australia and New Zealand. Companies with an interest in the digital future are invited to participate and to showcase their technology.
The KANZ Broadband Summit will be hosted by New Zealand’s Minister for Communications and Information Technology, Hon Steven Joyce, and has the support of the Korean Communications Commission and the Australian Department for Broadband, Communications and the Digital Economy.
• For further information, including programme and registration details, visit: www.kanz2009.co.nz
The fourth round of resumed New Zealand / Hong Kong, China Closer Economic Partnership (CEP) Negotiations will be taking place in Hong Kong from 5-9 October. With agreement on much of the chapter text for the CEP already reached, New Zealand negotiators will use the fourth round to focus on various outstanding issues across the negotiations.
The fourth round of resumed New Zealand / Hong Kong, China Closer Economic Partnership(CEP) Negotiations will be taking place in Hong Kongfrom 5-9 October.With agreement on much of the chapter text for the CEPalready reached,New Zealand negotiators will use thefourth roundto focuson various outstanding issuesacross the negotiations.
MFAT remains keen to talk to businesses and other organisations with an interest in the Hong Kong market and the CEP negotiations.
• For further information or to make comments please contact: Katja Ackerley, FTA Policy Officer, katja.ackerley@mfat.govt.nz or +64 4 439 8228.
The second round of FTA negotiations with the Republic of Korea (Korea) was held in Wellington from 14-18 September. The negotiations built on previousdiscussions, covering a wide range of issues including market access and rules for goods trade, services and investment, and other trade rules.
Progress was made in most areas of the negotiation, with the substantive conclusion of chapters on competition and consumer policy, labour and environment during the week. The two sides also discussed aspects of their initial offers for goods market access, which had been exchanged on 2 September.
The next round of negotiations will take place in Seoul from 14-18 December.
In order to ensure that we secure the best outcome for New Zealand from this negotiation, we continue to want to hear from New Zealand businesses about the issues they face in the Korean market.
• To provide feedback or to request further information contact: Alana Hudson, ftk@mfat.govt.nz or +64 4 439 8345.
During New Zealand’s fourth Trade Policy Review (TPR), held at the WTO in Geneva in June, New Zealand received over 300 questions from a variety of WTO members*. This reflects the attention paid to trade and economic policies of fellow members, particularly during the current economic downturn. Areas of interest included New Zealand’s FTA agenda, sanitary and phytosanitary requirements for imports, inward investment rules and government assistance to industry.
Written responses were prepared by New Zealand government departments, with opening and closing remarks made by New Zealand’s Ambassador to the WTO, David Walker, and other members also making oral statements regarding our policies.
Several members described New Zealand as a “model” WTO member, acknowledging our open trade policy regime, New Zealand’s commitment to strengthening the multilateral trading system, and to achieving a conclusion to the WTO Doha Round – including through the provision of three successive Chairs for the Agriculture negotiations, were widely welcomed.
• For further information, or for copies of the TPR reports, contact: Amy Elvidge, Trade Negotiations Division, amy.elvidge@mfat.govt.nz or +64 4 439 8385.
* TPRs are a useful transparency mechanism by which WTO members’ trade and trade-related policies are examined and evaluated at regular intervals. New Zealand’s last TPR was in 2003.
New Zealand’s strong partnership with Japan will be highlighted at the end of October 20009 with three significant events to be held in Tokyo, as well as the setting up of New Zealand’s “Giant Rugby Ball” venue near Tokyo Tower from 28 October to 3 November.
The 2009 Japan New Zealand Business Council Conference will be held in Tokyo on October 29, providing an opportunity for New Zealand and Japanese companies with interest in the New Zealand-Japan relationship to further enhance their links.
The second Japan New Zealand Partnership Forum will be held in Tokyo on Friday 30 October. Building on a successful first Partnership Forum held in May 2008, this second Partnership Forum will bring together senior Japanese and New Zealand government and business leaders. Under the theme “Partnership and the Real Economy” the attendees will explore innovative ways in which the two countries, their private sectors, and governments can work together to advance the business relationship.
As an exciting finale to the season of events, Tokyo will also be host to this year’s fourth and final Bledisloe Cup rugby game on 31 October. The hosting of the New Zealand-Australia test match in Tokyo highlights the strong interest in rugby in Japan, and the game will also provide an opportunity to showcase New Zealand’s hosting of the Rugby World Cup in 2011. Japan has recently been named as host of the cup in 2019.
• For further information on any of these events, please contact: Peter Carter, Asia Division, peter.carter@mfat.govt.nz or +64 4 439 8395.
About 60 participants attended the first Taiwan Business Leaders Forum in Auckland on 29 September to hear presentations on opportunities for New Zealand businesses in Taiwan. Hugh Tucker of Rakon Limited provided a case study of the company’s successful expansion in Taiwan and Asia. Tucker and other speakers also noted the opportunities presented by the growing China-Taiwan trade relationship and the scope to become involved in this growing economic relationship. China has been Taiwan’s largest market over the last four years, taking some 40% of its exports.
The Taiwan Business Leaders Forum was created by the Auckland Chamber of Commerce as a platform to promote and grow bilateral business-to-business relations between New Zealand and Taiwan companies, and will hold regular events to facilitate the exchange of commercial experiences amongst interested businesspeople. At these events participants will hear from key stakeholders in the New Zealand-Taiwan business sector and have the opportunity to network with others with economic interests in this exciting market.
Taiwan is New Zealand’s twelfth largest export market, with dairy, meat, fruit, seafood and forest products maintaining large shares within our export receipts. Taiwan is also New Zealand’s fourteenth largest source of imports and an important source of foreign investment. New Zealand also accommodates a significant number of Taiwanese students annually and is an important tourism market for New Zealand.
• Businesses interested in participating in the Taiwan Business Leaders Forum should contact Nada Young at bcouncil@chamber.co.nz or +64 9 302 9932 to join the Forum mailing list and to be kept informed about current and future Forum events and activities.
A Mutual Recognition Arrangement (MRA) was signed on Wednesday 12 August between the New Zealand Institute of Chartered Accountants and the US International Qualifications Appraisal Board at a ceremony hosted by the Minister of Trade, the Hon Tim Groser.
New Zealand is one of only a handful of countries whose chartered accountants are recognised on a par with their influential US counterparts. The MRA smoothes the way for NZ chartered accountants to practice in the United States, the world’s largest capital market. In congratulating the two sides for negotiating the agreement, the Minister noted that agreements such as MRAs are the building blocks underpinning trade and promoting global interconnectedness.
• For further information contact: Bruce Bennett, New Zealand Institute of Chartered Accountants, General Manager Membership, +64 4 474 7876.top of page
