New Zealand needs to continue building strong trade ties with emerging partners such as China, India and Indonesia if it is to fulfil its potential and earn its own way in the world.
Speaking to the Rotorua Chamber of Commerce at the Distinction Hotel yesterday, Trade Minister Tim Groser talked about existing free trade agreements and present negotiations, saying the emerging nations would be critical to New Zealand's future economic growth.
"New Zealand and Australia's links with emerging nations, such as China, are the key to building trade and an investment and innovation-driven economy. My job, in the very long term, is about giving New Zealanders the opportunity to earn their way in this world."
Groser quoted Prime Minister John Key's assertion that New Zealand is not going to get richer by selling to itself, saying the future lay in export of diverse products, services and intellectual property to a wider global market than it has sold to in the past.
"In 1950, 90 per cent of our exports were to Britain. We were dependent on one market and on a very narrow range of goods - butter, sheep meat and cheese. We were very susceptible to environmental influences."
He said Britain entering the European common market was hard back in the 1970s, but it forced New Zealand to diversify its exports, putting it in a much stronger position today.
"We have made the transition and have made it very successfully. We are now, in the next two to three years, about to cash-in on the efforts of many governments to build these new platforms."
Although he said there was a one in five chance the forecast 3 per cent average growth was overly optimistic, New Zealander's needed to focus on the fact the glass was four fifths full and there was a much greater chance the economy would meet or exceed that forecast.
Groser stressed Australia was still New Zealand's largest export market at 23 per cent - still more than twice the value of China's 11 per cent of exports - but working with Asia was becoming increasingly important.
Last week he announced progress towards an economic co-operation agreement with Chinese Taipei and Groser said New Zealand was ahead of the rest of the world in forming trade agreements with all three sectors of the amalgamating Chinese economy - mainland China and Hong Kong, which New Zealand already has free trade agreements with, and Chinese Taipei.
"This will give our exports unparalleled opportunities that no other countries have with this huge emerging country."
Indonesia is another market he said would increase in importance in the coming years. "It is now a $1 billion market for New Zealand, but we will sell more there than to Britain in a matter of years."