Latest / Early Edition with Ryan Bridge / Todd McClay: Trade Minister on the acceleration of New Zealand’s export boom

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Todd McClay: Trade Minister on the acceleration of New Zealand’s export boom · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: So more of the good numbers on exports for December
• 0:03
  Speaker 1: quarter twenty nine billion dollars. That was up two point
• 0:06
  Speaker 1: two billion on last year. Dairy up ten, tourism up
• 0:08
  Speaker 1: nine point five, meet up twenty one point four. The
• 0:12
  Speaker 1: war and shipping disruption ahead wind of course. Todd McClay
• 0:15
  Speaker 1: Trade minister with us this morning. Minister, Good morning, right,
• 0:18
  Speaker 1: and hey, good morning. Any update on the Middle East
• 0:20
  Speaker 1: situation from you, by the way on our goods getting
• 0:23
  Speaker 1: the market, Yeah, we'll.
• 0:25
  Speaker 2: Look there the information I received yesterday and a lot
• 0:28
  Speaker 2: of us are sort of working at space. The way
• 0:30
  Speaker 2: through the system still is that shipping lines are putting
• 0:34
  Speaker 2: in place their contingencies where they are moving goods that
• 0:38
  Speaker 2: are distance rather nations not through that part of the world.
• 0:42
  Speaker 2: So that means some delays for exporters, but the goods
• 0:44
  Speaker 2: will still get to market. The middlease itself remains closed.
• 0:49
  Speaker 2: In fact, yesterday we're out on the ground and Auckland
• 0:52
  Speaker 2: else we're talking directly and to exporters and they are,
• 0:56
  Speaker 2: you know, at this stage is not concerned. A number
• 0:58
  Speaker 2: of them have insurance in place there be an extended
• 1:01
  Speaker 2: period of time that they can't get good into those markets.
• 1:04
  Speaker 2: But at some stage not too different futures. Some of
• 1:06
  Speaker 2: the ports we think we'll be starting to open up,
• 1:09
  Speaker 2: however in the first week and they've seen overnight, and
• 1:11
  Speaker 2: it's sort of a very precarious situation.
• 1:13
  Speaker 1: Yeah, I spoke not sir Nathan guy yesterday. He mentioned
• 1:16
  Speaker 1: that mb might need to get involved with changing a
• 1:18
  Speaker 1: few rigs around a country of destination rules have you?
• 1:23
  Speaker 2: Are you across that all? So all of that stuff
• 1:26
  Speaker 2: can happen quite quickly when needed, no problem at all. So,
• 1:31
  Speaker 2: I mean the advice that will give you any export
• 1:32
  Speaker 2: is where they have particularly concerns for what they're doing
• 1:35
  Speaker 2: just to reach out. But actually is a very close
• 1:37
  Speaker 2: relationship between you know, MBM fact particularly and our exports.
• 1:42
  Speaker 2: We've given that export such an important part of our economy.
• 1:44
  Speaker 2: So whatever we need to do or do as quickly
• 1:46
  Speaker 2: as we can, very good.
• 1:47
  Speaker 1: Did you see Trump's offer to help to let the
• 1:50
  Speaker 1: US Navy guide the ships through the Strait?
• 1:54
  Speaker 2: I haven't seen that, so no, that's not across my
• 1:56
  Speaker 2: desk here right.
• 1:57
  Speaker 1: The export numbers in general, the story can continues to
• 2:00
  Speaker 1: be well, a great one for New Zealand.
• 2:03
  Speaker 2: Yeah, it's very very positive and we've been seeing in
• 2:05
  Speaker 2: upsource for a period of time. It's two things. It
• 2:08
  Speaker 2: is extra demand, a lot more demand for the high
• 2:11
  Speaker 2: quality products, particularly you know, food and fiber that we produce.
• 2:15
  Speaker 2: There's also, you know, we are more competitive markets with
• 2:18
  Speaker 2: the New Zealand dollar having been a little bit lower
• 2:20
  Speaker 2: for a period of time. But Ryan, I think a
• 2:22
  Speaker 2: couple of standouts you mentioned earlier. You know, Dare is up,
• 2:25
  Speaker 2: but meet at twenty one percent increase is quite phenomenal
• 2:30
  Speaker 2: the areas of the world that we're seeing increase or
• 2:35
  Speaker 2: growth in our exports countries we have free trade agreements.
• 2:38
  Speaker 2: So the EU was up more than twenty two percent
• 2:40
  Speaker 2: in that quarter, the UK thirteen percent, Australia of course
• 2:44
  Speaker 2: it's very very strong, as is China, and interestingly, the
• 2:47
  Speaker 2: US up almost eight percent even with those tariffs in place.
• 2:51
  Speaker 2: Seems use consumers want you know, New Zealand food and
• 2:55
  Speaker 2: they're willing to pay a bit more for it.
• 2:57
  Speaker 1: As a trade minister, are you wanting Trump to just
• 2:59
  Speaker 1: like stop with the terraffs and stop with the walls please?
• 3:03
  Speaker 2: Well, I think I like the war. I think i'd
• 3:06
  Speaker 2: like all wars to start. But that's a much longer
• 3:08
  Speaker 2: conversation so what we need is, you know, the uncertainty
• 3:14
  Speaker 2: to go away. New Zealand thinks tariffs are harmful. We
• 3:17
  Speaker 2: have very very low terrif rates here. I mean, if
• 3:20
  Speaker 2: you think about India, that's a very high teriff area.
• 3:23
  Speaker 2: Our wine face one hundred and fifty percent, sheep meet
• 3:28
  Speaker 2: thirty percent. By comparison, Indian goods into New Zealand are
• 3:31
  Speaker 2: around about two percent, so very very low. We still
• 3:33
  Speaker 2: get to trade when there are you know, high teriff rates,
• 3:37
  Speaker 2: albeit it is harder, but it's the certainty that allows
• 3:42
  Speaker 2: of a trade agreement, that allows our exporters to decide
• 3:45
  Speaker 2: to put effort into a market. So when there are
• 3:47
  Speaker 2: changes in tteriff rates or conditions or rules, it makes
• 3:50
  Speaker 2: it very very hard and uncertain. Our exporterers may not
• 3:53
  Speaker 2: want to be in there, or it's harder to make
• 3:54
  Speaker 2: those long term business relationships. So yes, we'd like the
• 3:58
  Speaker 2: tiff rates to go away. We don't think warranted against
• 4:00
  Speaker 2: New Zealand from the US. But what we need even
• 4:03
  Speaker 2: more is some certainty so that the you know, businesses
• 4:06
  Speaker 2: on both sides in the US and you can start
• 4:09
  Speaker 2: planning again.
• 4:09
  Speaker 1: Hey, we spoke yesterday about the golf States and now
• 4:12
  Speaker 1: you've got friends counterparts there. Have you spoken to any
• 4:14
  Speaker 1: of them? Do you know whether they know? What are
• 4:17
  Speaker 1: they telling you?
• 4:18
  Speaker 2: So I've been messaging as opposed to phoning out the
• 4:21
  Speaker 2: last day or so, you know, just to express our support,
• 4:24
  Speaker 2: to check in and see how they are, both from
• 4:26
  Speaker 2: the point of view, you know, professionally, but also in
• 4:29
  Speaker 2: a couple of those countries have grown quite strong friendships
• 4:31
  Speaker 2: with some of their trade ministers as we've worked away
• 4:34
  Speaker 2: at the trade deals over the last year or two. Look,
• 4:36
  Speaker 2: they are very, very concerned, but they have very solid
• 4:40
  Speaker 2: plans in place. I mean, I think the most interesting
• 4:42
  Speaker 2: thing is, at least you're seeing through the media, is
• 4:45
  Speaker 2: that their defense systems that they have and all of
• 4:48
  Speaker 2: those countries are unbelievably robust and they are protecting them.
• 4:53
  Speaker 2: But as I've said on your your other show earlier
• 4:56
  Speaker 2: in the week, you know, we strongly condemned the actions
• 4:58
  Speaker 2: of Iran and attacking friends and neighbors and civilians in
• 5:02
  Speaker 2: those areas, and the should stop.
• 5:05
  Speaker 1: They went harder on in the first twenty four hours
• 5:08
  Speaker 1: the Gulf States, the US Saudis at least than they
• 5:12
  Speaker 1: did on Israel.
• 5:14
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• 5:17
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• 5:20
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