Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Cattle photographed in New Zealand. Agriculture plays an important role in New Zealand’s economy, especially when it comes to exports.
David Clap | Stone | fake images
New Zealand’s prime minister told CNBC that the country needs to look beyond its own backyard for business opportunities, as the South Pacific island nation signs an economic partnership with the United Arab Emirates (UAE).
Prime Minister Christopher Luxon sees the free trade agreement, formally known as the Comprehensive Economic Partnership Agreement (CEPA), as an opportunity to expand bilateral trade between the countries and makes the UAE one of the largest markets in the island in the Middle East.
“We’ve had a long-standing relationship for more than 40 years of diplomatic recognition, and really our opportunity now is to deepen and broaden the economic relationship,” Luxon told CNBC on Monday.
“That is why the signing of the CEPA and also the bilateral investment treaty is really important, because in reality they are two small advanced economies in the world that have a lot in common and a
“We have a lot of common values and we want to be able to work together and build that relationship.”
New Zealand’s main exports to the UAE include dairy products, industrial products, meat, horticultural products and travel services. the government said when announcing the agreement. The agreement, which is expected to come into force later this year, comes as the government aims to double the value of exports within 10 years. He said CEPA will mean 99% of New Zealand goods exporters will be able to access the UAE market duty-free.
“This includes all New Zealand dairy, red meat, horticultural and industrial products immediately after the Agreement comes into force,” he said.
“One in four of our jobs in New Zealand is closely tied to trade,” Luxon, leader of the center-right New Zealand National Party, which has been in power since late 2023, told CNBC’s Dan Murphy in Abu Dabi on Monday.
“When you see a New Zealand company that exports to the world, they can pay their workers
7% higher wages and salaries and are often our most productive companies. The message to people at home is to understand that we are a trading nation. “We don’t get rich by simply selling things to each other in the South Pacific or within New Zealand,” he said.
“We actually need to send great products and services to the world, for which there is a huge demand, and make sure we open up new markets like the Middle East to get those products as well. By doing so, we bring in more money.” at home, and that, obviously, is the way we can afford better public services like health and education,” Luxon added.
New Zealand needs an economic boost after its economy contracted last year and entered recession territory in the third quarter. The economy contracted 1% in the July-September quarter, according to data published in December.
The drop followed a 1.1% contraction in the previous quarter. Two consecutive quarters of negative growth are widely considered a technical recession.
WELLINGTON, NEW ZEALAND – NOVEMBER 3: Incoming Prime Minister and National Party leader Christopher Luxon speaks during a press conference in Parliament on November 3, 2023 in Wellington, New Zealand. Special votes cast overseas and by mail were certified on Friday, finally sealing the results of New Zealand’s general election. The Labor Party was soundly defeated by the National Party, led by Christopher Luxon, which gained the most votes. However, National will need the support of the ACT and NZ First parties to form the next coalition government. (Photo by Hagen Hopkins/Getty Images)
Hagen Hopkins | Getty Images News | fake images
Luxon said there was no doubt the last three years had been “a very challenging time” for the country, but said inflation, to 2.2% in Octoberwas under control and interest rates were falling. The country’s central bank has noted that further flexibility will occur at its next meeting on February 19..
“We have business confidence in a maximum of 10 years. We have consumer confidence in a maximum of three years. We have Farmer confidence is the highest since 2017. “So we know that we have the conditions for people to believe that there is a better future,” he added.
“Now we have to convert and really drive growth, and that’s where these stronger international trade connections are, but also encouraging inbound investment into New Zealand.”
When asked how he felt about Donald Trump’s return to power in the United States and the possibility of imposing tariffs on exports to the United States, as the president-elect has widely noted (with a potential universal tariff of 10% or 20% on all goods imported into the US), Luxon said it was in “wait and see” mode.
“We are going to work well with whatever administration the Americans elect, and they have
selected Donald Trump and the Republican Administration. And I have every confidence that we will work very constructively with them. “We will have to wait and see what the tariff policy is in terms of how it is actually applied or what is applied,” he said.
