We are sitting pretty in terms of the global market. I can think back to when we were having difficulty finding a market for our meat and dairy products. Now the challenge isn’t to find someone to buy our products — the challenge is to get the best price for it.
Part of the reason for this change in circumstance is that we now enjoy excellent market access opportunity into most of Asia, Australia and now the UK. Our network of generally high-quality free trade agreements (FTAs) has delivered this.
The recent FTA with the EU has let down the dairy and meat sectors badly — the average European will only get to eat a New Zealand steak once every 10 years under Labour’s deal — however, a rules-based approach to trade with Europe still makes it easier for our exporters.
The Government has not started any formal liberalisation discussions with the United States or India, and these should be promoted so that we’re not left behind. We need to be smarter in our strategy and patient with our expectations.
The other reason we are sitting pretty is the integrity and reputation of what we produce. And interest in the quality of our product and the increasingly positive impact it has on the environment will only grow.
In my role as National’s agriculture and trade spokesperson I visit lots of farmers, growers and processors. Not one is unconcerned about doing even better for the environment. Farmers want to improve water quality and reduce carbon emissions. They are actively investing in improved genetics, and technology to achieve this. Processors are committed to decarbonisation. And the supply chain is on a similar rapid journey. In 10 years’ time, our environmentally friendly product will be transported on more efficient roads and rail, by electric or hydrogen-powered vehicles, onto an international shipping fleet powered by hydrogen or ammonium.
Everyone will be wanting our product and will be willing to pay top dollar for it.
National is focused on how to partner with the agriculture sector on this journey.
The world is not standing still and there is dramatic change afoot. Chinese consumers will be more wealthy and will remain important for New Zealand. But it will no longer be growing as quickly as in recent years as its population is about to undergo a dramatic shift. India, Pakistan and Bangladesh, Sri Lanka and a number of countries in the Middle East and Africa are going to become much more important. And Latin America is going to be even more interesting as an opportunity than it is today.
We need to reposition New Zealand’s foreign and trade policy to do even better in this new world. It is going to mean new skills having to be learned and people living and working in different places.
We are going to have to invest more in French and Spanish as well as Chinese, Arabic, Indian and other Asian languages.
A missed opportunity from National leaving office in 2017 was not being able reset our negotiations with the Gulf Co-operation Council (GCC) in the Middle East and the Pacific Alliance in Latin America. These will join India as one of my priorities if we are back in office in October. The UAE has already said they will negotiate bilaterally with New Zealand — an opportunity Labour is set to announce just before the election. This is long overdue, however, the GCC as a whole must remain a priority.
We have several Latin American countries wanting to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Why not accelerate their accessions? All this is possible with strong, effective leadership.
Most immediately, I want to look at how New Zealand can partner with Ukraine to help rebuild that economy after the dreadful war it is currently fighting. We are very complementary as economies and have much opportunity for agriculture collaboration. Ukraine has put up its hand to be an active member in the world’s trade architecture. We should support and champion this and look to welcome them for strategic reasons to existing trade deals.
New Zealand is a trading nation, and 400 million people around the world get 10 per cent of their diet from our shores. The way we afford schools, hospitals, roads and more teachers and nurses is through producing more and doing more on the world stage.
A government’s job is to open doors and level the playing field, then move out of the way for Kiwis to do what they do best, which is make the most of these opportunities.
The next National Government has this clearly in our sights.
● Todd McClay is the National Party’s spokesperson for Agriculture, Trade, and Hunting and Fishing.
