NZ eyes stronger regional ties amid US-China trade war
Finance Minister Nicola Willis said New Zealand’s regional and bilateral trade relations will continue to strengthen amid a worsening US-China trade war as small countries like its own must adapt to a new reality and stick firmly to priorities including tackling climate change.
In an interview on Thursday, Willis said New Zealand was acutely aware of rising geopolitical and economic risks, but discussions at annual meetings of the International Monetary Fund and World Bank showed the staying power of international institutions and trade agreements between other countries.
He noted that New Zealand has strong trade ties under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a free trade agreement signed between 11 member countries, including Australia, Canada, Japan and the United Kingdom, and that the European Union is also interested in this link.
He said a separate trade agreement with the United Arab Emirates was also promising.
“All these trade relationships are very strong and the message we’re getting from our partners is that they want to continue to develop and expand them rather than going the other way,” he told Reuters.
“We are… cautious and nervous about anyone backing out of the agreements, but we don’t see signs of that happening.”
IMF and global trade officials this week highlighted the uncertainty and risks associated with a new escalation in the US-China trade war, but noted that global trade remains resilient, noting that only three countries – the US, China and Canada – have increased tariff rates in recent months, with about 72 percent of trade flows still adhering to existing rules.
Willis said New Zealand remained committed to its emissions reduction commitments under the Paris climate agreement and did not expect US President Donald Trump’s withdrawal of the United States from the agreement to derail his country’s efforts.
“We see the risk and threat of more extreme climate events as something that we need to prepare for and adapt to, both for ourselves and for our Pacific family, small island states, that are particularly vulnerable to significant climate events,” Willis said.
Consumers around the world, including the United States, will continue to be concerned about the emissions profiles of countries like New Zealand, creating a business and commercial imperative for continued climate action, he said.
Willis said existing trade agreements, such as New Zealand’s trade deal with the EU, also require continued adherence to climate commitments.
“There are many bilateral agreements like this around the world where countries commit to each other to pursue climate action. And I certainly see many countries continuing those commitments.”
Willis said New Zealand remains a partner of the Five Eyes group, along with Britain, Canada, the United States and Australia, and has increased defense spending along with others due to increasing geostrategic pressures and vulnerability.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
