Weekly Global Economic Report – 20 May 2024

Weekly Global Report:

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Trade and Economic Updates

Domestic

Minister Chris Penk travels to APEC Trade Ministers Meeting
  • Minister for Land Information, Chris Penk, travelled to Peru(external link) last week to represent New Zealand at a meeting of trade ministers from the Asia-Pacific region on behalf of Trade Minister Todd McClay. The annual Asia-Pacific Economic Cooperation (APEC) ministers meeting was held on 17-18 May in Arequipa, Peru. Minister Penk held meetings with Ministers from Australia, Indonesia, Peru, Malaysia and the UK. He also engaged with New Zealand businesses focused on the Peruvian and Latin American markets.

Americas

US announces new tariffs on China
  • The Biden administration has announced steep new tariffs on some imports from China(external link). Tariffs increase to 100% on Electric Vehicles, 50% on semiconductors, solar cells, and syringes and 25% on lithium batteries, critical minerals, and facemasks. The measures were announced as part of a review of tariffs imposed on China by former President Trump in 2018.
Canada fails to comply with CPTPP dairy dispute outcome
  • Canada had until 1 May to comply with the Panel ruling in New Zealand’s successful dispute challenging its dairy quota administration under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).  Minister for Trade, Todd McClay, issued a press release(external link) stating that the changes Canada has made to its system do not comply with the ruling. He said New Zealand has ‘no intention of giving in’ on this issue, and that he has asked officials to provide advice on next steps.

Australia

Albanese government delivers third budget
  • On 14 May, the Albanese Government delivered its third budget(external link) and a second consecutive surplus. The budget covered six themes: easing cost-of-living pressures; building homes; ‘a future made in Australia’; strengthening the care economy; broadening opportunity and advancing equality; and responsible economic management. Some elements of the budget – including energy bill relief, rent assistance, cheaper medicines, and student debt relief – might reduce headline inflation faster than previous forecasts.
  • However, the centrepiece of the budget was the Future Made in Australia (FMIA) policy. To support FMIA, the budget included a range of significant announcements in support of investments in innovation, science and the digital agenda, and support for emerging industries.

Pacific

Deputy Prime Minister Peters visited Solomon Islands
  • Deputy Prime Minister Winston Peters stopped in the Solomon Islands en route to Papua New Guinea for a meeting with the new Prime Minister Jeremiah Manele, Foreign Minister, Peter Agovaka and Minister for National Planning and Development Coordination, Rexson Ramofafia. New Zealand representatives included Health Minister Dr Shane Reti, Climate Change Minister Simon Watts, Foreign Affairs Defence and Trade Committee Chair, Tim Van de Molen and Opposition Foreign Affairs spokesperson, David Parker. The meeting was a positive introductory call and set the scene for further engagement throughout the year.

Europe

EU agrees to release frozen Russian profits for Ukraine
  • After months of debate, the EU has agreed to use an estimated €4.4 billion (NZ$7.87 billion) of windfall profits from frozen Russian assets held within the EU to support Ukraine’s defence. A deal that 90% of the funds can be used for defence purchases, with the remaining 10% for non-lethal aid was necessary to gain the agreement of neutral member states Austria. According to press reports, last June the European Central Bank warned Brussels against taking money from custodians of trapped Russian assets, fearing this could dent confidence in the euro as a global currency and hurt financial stability. The EU’s decision comes amid a wider debate on ways to raise funds for the eventual rebuilding of Ukraine and how to ensure Russia makes a contribution. 

Market reports released this week

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.

The all of government Trade Barriers(external link) website can be used to register any trade barriers experienced or issues exporting to an offshore market. Queries can be sent via the website or through the MFAT Exporter Helpline 0800 824 605. Enquiries will be sent to the government agency best placed to answer.

Tatauranga Aotearoa Stats NZ provides official data on the value of New Zealand’s exports and imports of both goods and services, by commodity type via the New Zealand Trade Dashboard(external link). This interactive dashboard is updated every quarter and allows for filtering by country and by commodity type.

More reports

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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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