OPENING THE DOORS TO TRADE
The prospect of free trade agreements with China and Malaysia, the negotiation of a Closer Economic partnership with Thailand, and plans for an ASEAN-Australia/New Zealand free trade arrangement all mean that exporting opportunities in Asia are growing.
A fundamental objective of New Zealand’s trade policy is to expand the opportunities available to New Zealand exporters by removing barriers to trade and establishing sound frameworks under which trade and investment linkages can flourish. New Zealand, which already has one of the most open economies in the world, stands to gain significantly from bilateral and regional agreements which give us greater access to our key trading partners.
Free trade agreements (FTA) and closer economic partnerships (CEP) don’t present exporters with opportunities on a silver platter – certainly not in Asia, which has the whole world beating a path to its door – but they definitely do deliver direct and often immediate benefits as well as strategic advantages. They also help cement strong links with partner nations, particularly valuable in the increasingly important Asian markets.
An MFAT background paper on the CEP New Zealand signed with Thailand in April highlights the benefits that will flow from enhanced trade and economic links between the two nations. As one of the fastest growing economics in our region and a pivotal regional business hub, Thailand is already a valuable economic partner for New Zealand, with two-way merchandise trade of about NZ$1 billion in 2004. Yet New Zealand’s $362 million share of this trade has developed despite Thailand maintaining some of the highest trade barriers in the South East Asian region, suggesting that the trading relationship holds considerably greater potential.