Global Economic and Trade Update for New Zealand Businesses - 25 June 2021

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We welcome feedback from New Zealand exporters on this report and invite requests for reporting from New Zealand’s network of Embassies and High Commissions. If you would like to be added to the weekly distribution list for this report, please also email us at exports@mfat.net.

Domestic Updates

  • The Minister for COVID-19 Response has announced(external link) that the Wellington region will move to Alert Level 2 from 6pm on Wednesday 23 June (NZT) until 11.59pm on Sunday 27 June. The rest of the country will remain at Alert Level 1. This comes after a traveller visiting from Australia returned a positive COVID-19 test upon his return to Sydney. The Ministry of Health has advised people were at at any of the locations of interest(external link) that the traveller visited to isolate immediately and contact Healthline for advice on testing. For further information, please refer to the New Zealand government COVID-19 website https://covid19.govt.nz/(external link).
  • Further to the detection last month of Salmonella Enteritidis in an Auckland poultry farm that supplies hatching eggs and day-old chicks to the broiler (meat) and layer (table eggs) industry, the Ministry for Primary Industries (MPI) has now confirmed(external link) the presence of Salmonella Enteritidis in additional commercial poultry farms. Precautionary measures have been taken to prevent identified potentially contaminated products entering the New Zealand domestic and/or export markets. No retrospective domestic recall has been initiated. MPI will directly notify importing country competent authorities should any exports of hatching eggs, day old chick or table eggs to their country be implicated.

Regional Updates

Australia and the Pacific

  • Australia will commence(external link) dispute resolution proceedings at the World Trade Organization (WTO) against China over its imposition of anti-dumping duties on Australian wine. Australian Trade Minister Dan Tehan Minister said Australia’s use of the WTO in this matter “is consistent with its previous use of the WTO and aligns with our support for the rules-based trading system”; and Australia remains open to engaging directly with China to resolve this issue.
  • Samoa’s Government introduced revised entry requirements for seafarers(external link) and entry to Sāmoan ports(external link) with immediate effect from June 19. This includes mandatory COVID-19 vaccination for crew and travellers.

Asia

  • Agencies are monitoring ongoing disruptions at Yantian Port in Shenzhen, China caused by a recent localised COVID-19 outbreak. Port operations have reportedly recovered to 70%, however delays were not expected to be resolved until at least the end of this month. Neighbouring Shekou Port has also shown some pressure and reduced in-gate confirmation times. NZTE continues to scan for New Zealand businesses which might be impacted.
  • South Korean health authorities announced on 14 June that quarantine free entry for vaccinated people from countries that do not have an ongoing major outbreak or significant variant cases of COVID-19 will come into effect from early July. The new policy will apply to those vaccinated with a WHO-approved vaccine who are either Korean citizens, long-term foreign residents, or foreigners arriving in the country for: business or study; activities related to public services; urgent humanitarian reasons (i.e. funerals); or visiting immediate family/spouse’s family. You can contact the South Korean Embassy for more information on travel to South Korea.
  • Prime Minister Kim Boo-kyum announced on 9 June that South Korea is currently negotiating travel bubbles with Singapore, Thailand, Guam and Saipan, to start as early as July. South Korea will waive its mandatory 14-day quarantine requirements for vaccinated international tour group visitors that test negative for COVID-19 before entering and after arriving in-country. A joint statement from the Ministries of Transport and Tourism said, "we hope the implementation of a safe and secure travel bubble initiative will serve as an opportunity to facilitate the recovery of Korea's tourism and aviation industries post-COVID-19."

Europe

  • Germany has adopted the Corporate Due Diligence in Supply Chains Act, which enters into force in 2023. The Act applies to companies (including German subsidiaries of multinationals) which have a registered office in Germany and workforce of over 1,000 employees. It aims to strengthen human rights and environmental standards across supply chains, including preventing forced labour and modern slavery, and addressing inadequate work conditions.  New Zealand exporters to Germany could be affected as German customers take greater interest in their suppliers' human rights and environmental standards, especially those located outside New Zealand (e.g. suppliers of feed, raw materials and textiles).

Americas

  • On Tuesday 12 June, the White House released(external link) its supply chain report titled “Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad Based Growth”. This report was mandated by a 24 February Presidential Executive Order and is focused on four key sectors: semiconductors, large capacity batteries, critical minerals and pharmaceuticals.
  • On 15 June, California fully opened its economy by lifting almost all its COVID-19 restrictions and removing its tiered county by county reopening blueprint. There will no longer be restrictions such as capacity limits and physical distancing requirements, except in the case of “mega events” with gatherings of more than 5,000 people.

Middle East and Africa

  • The Egyptian Ministry of Finance has announced an extension to implementation of Egypt’s National Single Window for Foreign Trade Facilitation (Nafeza) to 1 October. The system, which was previously planned to become mandatory on 1 July, aims to modernise and automate customs administration through an Advanced Cargo Information (ACI) system. It is hoped the ACI system will  speed up customs procedures, improve border security and eliminate cheating on customs and taxes. The Ministry has advised that no goods shipped from abroad will be allowed to enter Egyptian ports as of the new deadline of 1 October except through the ACI system. Exporters and importers are encouraged to register with the new system quickly. Further information on the system can be found on the Nafeza website(external link).
  • As of 16 June, all incoming travellers to Saudi Arabia are now required to pre-register their flight details and vaccination status through the ‘Muqeem’ website at least 72 hours before arrival. Travelers must register under one of four categories: Vaccinated resident, unvaccinated resident, vaccinated visitor, and unvaccinated visitor.
  • Kuwait has announced that from 1 August, non-citizens will again be able to enter Kuwait if they have been fully vaccinated with a Kuwaiti-recognised vaccine. Vaccinated travellers are still required to do a pre-flight PCR test, with a second after seven days of home self-isolation. From 1 August, only fully-vaccinated Kuwaiti citizens will be permitted to leave the country. From 27 June, only vaccinated people will be permitted to enter restaurants, cafes, health clubs and “large commercial spaces.

Market reports released this week

External links

The following links may provide useful information to businesses:

  • NZTE(external link) has a website focused on providing COVID-19 information for exporters. They’ve also launched myNZTE(external link), an interactive digital portal of insights and tools available to all New Zealand exporters.
  • The Treasury releases a weekly economic update(external link) every Friday. Stats NZ has published a data portal(external link) with near real-time economic indicators.
  • MBIE publishes a sector reports series(external link) which provides regularly updated reports on all industry sectors that make up the New Zealand economy. These include official economic data and the challenges and opportunities that face New Zealand’s industry sectors.
  • Business.govt.nz(external link) provides tools and advice from across government to save small businesses’ time and help make the business a success.
  • MFAT has created a tariff finder(external link) which is designed to help goods exporters and importers maximise benefits from New Zealand’s Free Trade Agreements and compare tariffs in 136 other markets.

To contact our Export Helpdesk

Disclaimer

This information released in this report aligns with the provisions of the Official Information Act 1982. The opinions and analysis expressed in this report are the author’s own and do not necessarily reflect the views or official policy position of the New Zealand Government. The Ministry of Foreign Affairs and Trade and the New Zealand Government take no responsibility for the accuracy of this report.

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