Global Economic and Trade Update for New Zealand Businesses - 9 July 2021

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Regional Updates

Australia and the Pacific

  • Australia has experienced multiple clusters of COVID-19 community cases across a number of Australian states and territories. The New Zealand Government paused quarantine-free travel from all Australian states and territories on 26 June. With the exception of Queensland and New South Wales, states and territories have contained outbreaks, seeing quarantine-free travel resume with Tasmania, the Australian Capital Territory, Victoria and South Australia on 5 July, and Northern Territory and Western Australia on 9 July. Travel from Queensland and New South Wales remains paused.  Managed return ‘green flights’ from these states will be available for some travelers from 11.59pm 9 July. All passengers travelling to New Zealand will be required to receive a negative pre-departure test result for COVID-19.
  • On 24 June, after a decade of negotiation, the Sāmoan Ministry of Agriculture and Fisheries (MAF) announced that it is finalising an agreement to start exporting fresh taro to Australia again. Exports were prohibited in 2011 due to the presence of the Taro Leaf Blight fungus in Sāmoa. The caretaker Minister of Agriculture and Fisheries Lopao’o Natanielu Mu’a noted that the opening of the Australian market would lead to a significant increase in demand for fresh taro from commercial growers in Sāmoa which may impact local prices and prices for existing importers of fresh taro.

Asia

  • On 24 June China announced that it will initiate World Trade Organization dispute settlement proceedings to challenge Australia’s imposition of anti-dumping and countervailing duties on railway wheels, wind towers and stainless steel sink products from China.
  • On 21 June Obayashi Corporation announced it will enter a joint venture with Ports of Auckland to deliver a hydrogen refueling station project. Ports of Auckland aims to replace its heavy port equipment with hydrogen powered alternatives, with the help of Obayashi’s technology and hydrogen experience. This is Obayashi’s second hydrogen project in New Zealand, the first being its joint venture with Tuaropaki Trust to develop New Zealand's first green hydrogen production facility near Taupo. Japan and New Zealand are the first two countries to sign a memorandum of cooperation on developing hydrogen energy.
  • On 4 July Indonesia announced that from 6 July all foreign nationals will require proof of vaccination to enter the country. These vaccination requirements follow similar requirements for some domestic travel that came into force on 3 July. Travelers to and from Java and Bali are now required to present proof they have received at least a first dose of a vaccine prior to domestic travel, in addition to previous requirements including a negative COVID-19 test.
  • In the Philippines a “Green Lane” has been established to allow fully vaccinated individuals who stayed exclusively in “green” countries/jurisdictions in the previous 14 days to undergo a seven-day quarantine upon arrival. This is half of the standard quarantine requirement. There are 57 “green” countries, which include New Zealand and Australia. Restrictions preventing travel to the Philippines from Bangladesh, India, Nepal, Oman, Pakistan, Sri Lanka, and United Arab Emirates (except as part of Government repatriations) have been extended until July 15.

Americas

  • The 18th EU-Canada Summit(external link) took place in Brussels on 14 June, with Prime Minister Justin Trudeau representing Canada, and European Council President Charles Michel and European Commission President Ursula von der Leyen representing the European Union. The Summit included announcements on health diplomacy, climate change, as well as a new strategic partnership on supply chains for critical raw materials. Leaders also discussed carbon pricing and ratification of the Comprehensive Economic and Trade Agreement  (CETA) between Canada and the EU.
  • The Canadian Net-Zero Emissions Accountability Act(external link) was passed by the Canadian House and Senate, receiving Royal Assent on 29 June 2021. The Act legislates emissions reductions accountability to address climate change, by setting legal requirements on current and future Canadian governments to plan, report, and course correct on the path to net-zero emissions by or before 2050.

Middle East and Africa

  • On 4 July, Saudi Arabia suspended entry for anyone who has spent the last 14 days in the United Arab Emirates, Ethiopia, Viet Nam, and Afghanistan and also banned travel to those countries without prior permission. Travellers returning from these countries with permission must spend one week in institutional quarantine at their own expense. The spread of new COVID strains was cited as the reason.

Market reports released this week

  • The previous global economic and trade update can be found here.
  • A report on the German medical cannabis market was prepared by the New Zealand Embassy in Berlin and can be found here.
  • A report on the Biden-Harris Administration’s actions to secure supply chains was prepared by the New Zealand Embassy in Washington here.
  • A report on California’s economic recovery and industry trends was prepared by the New Zealand Consulate-General in Los Angeles and can be read here.
  • MFAT’s latest report monitoring global supply chains (May – June 2021 edition), prepared by the Trade Recovery Unit in Economic Division, has been published here.

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.
  • Businesss.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.

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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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