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Home / Business

Ministers lead six delegations to China this year

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
10 Jan, 2010 03:00 PM2 mins to read

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New Zealand Cabinet ministers are to lead up to six delegations to China this year as part of a drive to take advantage of the $30 million taxpayer investment in the 2010 Shanghai Expo.

Trade Minister Tim Groser says the Government is determined to get a return on its $30
million - a feat which poses considerable difficulties given the competition from other nations.

"If you want to have any chance of getting Chinese attention you've got to have a minister leading the delegation," Groser adds.

Prime Minister John Key is expected to travel to China in May for the opening of the New Zealand pavilion. Other strategies are under development to leverage further the ground-breaking free-trade deal with China.

"You don't stop the moment you sign an FTA ... we have quite an exciting agenda which we will pursue with verve," says Groser.

The Government is also chasing agreements with South Korea and India.

Groser admits the Korean deal is proving difficult. "Their thinking is dominated by the failure of the Doha Round to move forward and the failure of Korus [the Korean-US FTA] which is stuck permanently in a congressional pipeline."

The first officials round on the India deal is expected to go ahead next month and the Trade Minister will also follow through with Japan.

"Fonterra has calculated that 40 per cent of everything they sell goes to countries New Zealand now has FTAs with," says Groser. "If we can extend this, the benefits will flow."

Meanwhile, the Asean-Australia New Zealand FTA came into effect last week. But two Asean partners - Thailand and Indonesia - did not complete pre-entry steps in time.

Two other negotiated deals - the Gulf States and Hong Kong agreements - are going through the documentation phase.

Groser says that even when deals do not involve much liberalisation on the trade front, the discussions are always "politically dodgy". Agriculture is not the only prime beneficiary of these agreements: ICT, education, environmental and professional services also feature.

"New Zealand companies are increasingly sniffing around the Gulf States," says Groser. He points to a major deal the Polytech Association has landed to provide education and planning services so similar education institutes can be set up there.

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