Market Diversification key in BGA Exports

Strengthening key market relationships and diversifying into new markets is a major theme for the update of the Export Markets workstream of the Business Growth Agenda released by Economic Development Minister Steven Joyce and Trade Minister Tim Groser in Auckland this morning.

Ministers have laid out an ambitious trade strategy to lift linkages for New Zealand companies around the Pacific Rim and into Europe. The strategy reflects the changing global environment and will ensure the New Zealand economy remains well positioned to ride out economic shocks – as well as enabling businesses to make the most of new and existing opportunities.

"The ongoing fragility of the world economy underlines the importance of strengthening trade relationships with all our key trading partners, particularly those around the Asia-Pacific region, Mr Joyce says. "This BGA update lays out a full programme over the next year as we work to strengthen existing relationships in South East Asia, China and Latin America, while also looking to advance a free trade agreement with the European Union."

Actions in the Export Markets programme include seeking a strategic partnership with South East Asian nations, developing a new partnership with the Pacific Alliance countries in South America, pursuing the launch of an EU-NZ FTA negotiation, negotiating an FTA upgrade with China, and seeking a successful conclusion to the TPP negotiations. A key initiative is laying out a longer term roadmap for trade negotiations.

"As well as our extensive list of immediate priorities, our trade strategy will develop a longer term policy, bringing in other key markets like India and the Gulf States, says Mr Groser. "We will continue to work closely with industry on the development of that plan, as all our work in this area is about giving the best opportunities for kiwi companies to compete and win on the world stage.

New Zealand’s trade strategy is one of seven priorities laid out in the BGA Export Markets update. The seven priority areas are:

• An ambitious free trade strategy that will minimise barriers for New Zealand exporters
• Maximising the benefits to exporters of our trade agreements
• Developing the world’s most efficient and cost-effective border management system to support trade and people flows
• Growing New Zealand Trade and Enterprise’s (NZTE) portfolio of export-active companies
• Growing international education
• Increasing the value of tourism to New Zealand
• Developing and growing New Zealand’s international marketing brand

The BGA 2015/16 Export Markets update contains a total of 23 new projects that government agencies will work on over the next year alongside 20 current projects. A total of 44 projects have now been completed in the export stream since the BGA began back in 2012.

The Government remains committed to achieving the goal of lifting exports to 40% of GDP within ten years, by 2025. Despite current challenges in the dairy industry there has been strong growth in key non-dairy industries such as tourism (up 21 per cent since 2012), international education (up 17 per cent since 2013) and Information and Communication Technology (up 70 per cent since 2010). The recent decline in the value of the New Zealand dollar will also help exporters who have had to deal with the headwinds of a very high exchange rate in recent years.

Exporting businesses offer significant benefits to our economy. They tend to grow faster, innovate more, and bring more capital and money into New Zealand. They also attract skilled and innovative individuals, pay higher wages and create jobs for New Zealanders. They are a critically important and valuable asset for New Zealand.

“Our aim is to create the conditions that allow businesses to become more internationally connected, able to add greater value to the volume of their exports, and seize opportunities in an increasingly Asia-Pacific centred world”, Mr Joyce says.

Copies of the reports are attached and they can be found HERE