Free trade key factor in NZ's future
Free trade agreements have the potential to deliver huge gains to New Zealand exporters and our agricultural sector in particular, writes Jacqui Dean (National) in this week's From the Beehive.
The recent brokering of new free trade agreements with several fast-growing economies in the Asia-Pacific basin will provide new and exciting opportunities for our country and its people.
Free trade deals offer real benefits for jobs and economic growth and the Government has an ambitious trade agenda.
Last week I was fortunate to attend the World Trade Organisation and Temasek Foundation Centre for Trade and Negotiations parliamentarian workshop on international trade in Singapore.
As the deputy chairwoman of the Government's Foreign Affairs, Defence and Trade Committee, this was a most productive visit in terms of gaining a deeper understanding of the WTO and a range of current and future negotiating issues in international trade.
Forty members of Parliament from ASEAN and Asia attended the event, which was intended to increase the capacity of regional legislators to engage in international trade issues.
Given the importance of trade agreements to the future of this country, the visit provided a good opportunity for me to get a greater understanding of the opportunities and issues that exist.
However, to gain an understanding of the significance of free trade we need look no further than farming.
The agricultural sector in this country paid almost $1.5 billion in tariffs on $18.5 billion of exports last year.
This equated to an 8 per cent reduction in revenue and ultimately impacted on the prices our producers received at the farm gate. Farmers certainly add value to our economy.
Free trade agreements, also known as Closer Economic Partnerships, involve a designated group of countries who have agreed to gradually eliminate tariffs and quotas on most goods and services traded between them.
New Zealand has free trade agreements in force with Hong Kong, China, Malaysia and closer economic partnerships with Thailand, Singapore and Australia.
But our work is not done yet. The importance of developing further engagement with emerging markets will be crucial to the farming sector in the future. As a result, free trade agreements are under negotiation with countries including Korea, India and Russia.
» Jacqui Dean is the National Party MP for Waitaki.