This has been a very big year for New Zealand trade, with much achieved in a relatively short period of time.
And if ever our exporters needed some good news, it’s probably now.
For New Zealand, there are always headwinds. Much of the world remains protected andwe are forever battling to level the playing field and give Kiwis a fair go on the world stage.
However, as 2024 draws to a close, New Zealand is well-positioned to navigate a complex and evolving global trade and geopolitical environment.
From navigating shifts in global economic policy to expanding our presence in key markets, we have taken deliberate steps to ensure that New Zealand remains competitive and resilient.
As an exporting nation, our future prosperity hinges on meeting the challenges of a shifting global landscape with ambition and determination – but this is not something new.
At Apec in Lima this month, amid discussions on uncertainty and trade pressures, I found optimism among global leaders – a determination to act decisively and carve out opportunities where we can.
Our Prime Minister Chris Luxon has set a bold vision: New Zealand as a world-leading small-advanced economy by 2040. This ambition is backed by our ambitious target to double exports by value within 10 years. Achieving this is no small feat, but the groundwork is being laid through new and exciting trade agreements, dismantling trade barriers, and targeted trade missions that deliver results for Kiwi companies.
A year of milestones
It’s important to take stock of what we’ve achieved and where we should be heading next. Our trade negotiators are some of the best in the world, and they’ve worked extremely hard this year.
In March, we were one of the few countries to succeed at the World Trade Organisation (WTO) Ministerial meeting in Abu Dhabi where, as a vice-chair we successfully negotiated an extension to the ecommerce Moratorium that sees all ecommerce remain tariff-free – giving certainty to New Zealand and the world’s exporters.
In May, the European Union free-trade agreement (EUNZFTA) entered into force many months sooner than predicted, providing $46 million of tariffs saved for Kiwi exporters that they would otherwise have missed out on this year.
In September, we concluded the New Zealand – United Arab Emirates Comprehensive Economic Partnership Agreement, our first free trade agreement (FTA) in the Middle East, giving Kiwi exporters a commercial advantage in that growing market. The agreement was negotiated in just over four months and delivers 98.5% tariff elimination on New Zealand exports on entry into force, rising to 99% after three years.
Last month, after just seven months of re-engagement, we concluded a trade agreement with the Gulf Cooperation Council (GCC) – unfinished business for successive Governments over 18 years – with a particular focus on goods and services trade. The agreement includes provisions that will make doing business easier, with preferential access for our primary sector exporters, streamlined customs procedures, reduced trade barriers, and commitments to level the playing field for Kiwi services businesses entering the market.
It also delivers duty-free access for 99% of New Zealand’s exports over 10 years, and when combined with the UAE agreement removes tariffs on 51% of our exports to the Gulf on day one.
These two agreements secure market access in a highly competitive market for beef, lamb, dairy, manuka honey, fish and many, many other goods, and contribute towards our ambitious goal of doubling exports by value over 10 years.
Both agreements also include provisions on intellectual property; transparency and trade and sustainability; and include commitments to international labour standards through the ILO, and to climate.
With Indian Minister of State for Commerce and Industry Jitin Prasada on the sidelines of G20, Brazil.
The GCC agreement also includes a section on women’s economic empowerment with commitments to the Convention on the Elimination of All Forms of Discrimination against Women. New Zealand also secured our Treaty of Waitangi exception to allow us to meet Treaty obligations.
Finally, in November, at Apec in Peru, we signed the agreement on trade with sustainability with Costa Rica, Iceland, and Switzerland; particularly good for our sheep farmers and wood producers to bring down tariffs on sustainable products New Zealand sells to the world.
Growing New Zealand’s trade relationships is part of the government’s plan to grow the economy, lift incomes for all Kiwis, and create jobs.
Breaking down barriers
Beyond signing new deals, we’re tackling non-tariff barriers (NTBs) and technical barriers to trade (TBTs) that hinder our exporters.
This year alone, we’ve resolved barriers impacting more than $730m worth of goods exports.
From restoring access for log exports to India, to extending tariff-free conditions for digital exports to all WTO members, to getting a 12-month reprieve from EU deforestation regulations that could cost our exporters up to $200m each year – these efforts are reducing costs for Kiwi businesses.
Next year, we aim to address $900m NTBs, including regulations affecting cosmetics in China and structural timber exports to Australia. We are also holding Canada accountable for breaching commitments under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), through a legal trade dispute that New Zealand is prosecuting to ensure our dairy farmers receive their rightful market access.
Engaging directly with markets
Trade missions are the backbone of our market engagement strategy. This year we have led eight trade missions with delegates representing 128 New Zealand businesses to: Brazil, China, Japan, Malaysia, the Philippines, Singapore, South Korea, Thailand and the US.
These missions resulted in 105 commercial outcomes worth millions of dollars. Most notably in just the last month, 13 Memorandums of Understandings signed in Brazil resulted in $100m worth of partnerships for emerging companies in the tech and agribusiness space, and 24 partnerships worth $340m from the delegation of nearly 70 New Zealand companies that attended the China International Import Expo (CIIE).
Signing the Agreement on Climate Change, Trade and Sustainability in Lima.
Continuing this ambition and hustle next year, we are delivering on our campaign promise to deliver more trade missions than any other government during this term of parliament to help businesses harness market access secured through new trade agreements.
Staying connected
The coalition Government is reestablishing connections around the world that are important to our economic future. I’ve had the opportunity of meeting with counterparts from countries we trade with and those we want to trade with more. This includes three visits to India and six meetings with the Indian Commerce Minister, six visits to the Middle East, two visits to China and five meetings with my Chinese counterpart, and four meetings with my EU, and six with UK counterparts, respectively.
We’ve also engaged with Trade Ministers from Latin America, the CPTPP, APEC, OECD, Southeast Asia, Japan, Singapore and Africa.
New Zealand was privileged to be invited to attend the G7 for the first time, and the G20 Trade Ministers meetings in Italy and Brazil, opportunities to talk to some of the world’s largest economies about our values and trade priorities.
The road ahead
The path to doubling export value won’t be without hurdles. Global demand for sustainable, traceable products is rising, and New Zealand must remain at the forefront of meeting these expectations. By aligning our exports with evolving consumer trends, fostering innovation, and reducing barriers, we are ensuring our economy remains resilient and competitive.
Trade isn’t just about numbers on a balance sheet – it’s about creating jobs, lifting incomes, and securing a better future for all New Zealanders.
As we look to 2025 and beyond, the message is clear: we will be out on the world stage hustling to ensure New Zealand can seize every opportunity, grow, adapt, and succeed in the global economy.
