Latest / The SME Stream / Charles Finny: Former trade negotiator on the new free trade agreement with the Gulf Cooperation Council

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Charles Finny: Former trade negotiator on the new free trade agreement with the Gulf Cooperation Council · The SME Stream

• 0:00
  Speaker 1: Great news for Kewi exporters. This morning, we've signed an
• 0:03
  Speaker 1: FTA with the six nation Golf Cooperation Council, that's the Saudis, UAE, Q,
• 0:08
  Speaker 1: eight Bahrain, Qatar and Oman. Together they will become our
• 0:13
  Speaker 1: seventh largest export destination by value. As a result of
• 0:17
  Speaker 1: this exchange, largely dairy and meat exports will benefit. Charles
• 0:22
  Speaker 1: Finney is a former New Zealand trade negotiator. He's with
• 0:24
  Speaker 1: us this morning. By the way, duty free access for
• 0:27
  Speaker 1: ninety nine percent of our exports over ten years. This
• 0:32
  Speaker 1: when combined with the recent deal we did with the UAE.
• 0:36
  Speaker 1: We're going to Charles Finny now, who is with us live. Charles,
• 0:38
  Speaker 1: Good morning, Good morning Ryan. Is this a good deal?
• 0:42
  Speaker 2: Yeah, I think it's very good. Obviously we haven't seen
• 0:45
  Speaker 2: the full detail yet, but as you've just been saying,
• 0:48
  Speaker 2: ninety nine percent of our exports free of duty within
• 0:53
  Speaker 2: ten years and about fifty percent if you combine this
• 0:56
  Speaker 2: with the UAE deal it was pronounced recently, we will
• 1:00
  Speaker 2: be free within a year. So that's really good news.
• 1:04
  Speaker 2: I suspect, as you say, meat and dairy will be
• 1:08
  Speaker 2: the initial beneficiaries, but that'll be wider benefits and also
• 1:13
  Speaker 2: good news. I think crosh services exporters too.
• 1:15
  Speaker 1: You took some of our exporters they say, actually tarifs
• 1:17
  Speaker 1: are pretty low here, roughly five percent. Is it going
• 1:20
  Speaker 1: to be It's not going to be a big game
• 1:21
  Speaker 1: changer like a China FDA.
• 1:24
  Speaker 2: Oh no, it's not. But I think it does increase
• 1:27
  Speaker 2: certainty and allow people to look again and in more
• 1:32
  Speaker 2: detail at this market. I think the timing couldn't be better.
• 1:35
  Speaker 2: We've got some slowing of the Chinese economy, some slight
• 1:39
  Speaker 2: reduction and export demand there, and we've got real uncertainty
• 1:45
  Speaker 2: being caused by the US presidential election. Whoever wins. It's
• 1:48
  Speaker 2: going to be more difficult I think for New Zealand
• 1:51
  Speaker 2: exporters going to that market, and there'll be some other
• 1:54
  Speaker 2: implications around the world. So you're having a market as
• 1:59
  Speaker 2: big as the GCC, I think, particularly for meat exporters
• 2:05
  Speaker 2: without duties, is going to be really powerful.
• 2:08
  Speaker 1: How much of the hold up over this, because obviously
• 2:10
  Speaker 1: McLay has been instrumental in getting this deal over the line.
• 2:14
  Speaker 1: How much of the hold up was to do with
• 2:15
  Speaker 1: that whole Saudi live meat export saga.
• 2:20
  Speaker 2: Well, obviously that was a complication early on it's fantastic
• 2:23
  Speaker 2: that's behind us, and well done, top of the clay
• 2:25
  Speaker 2: for putting good behind us.
• 2:27
  Speaker 1: Yeah yeah, goodbye, and we won't miss you. You mentioned
• 2:31
  Speaker 1: that the need to put our eggs into lots of
• 2:33
  Speaker 1: different baskets. Are we doing enough of that?
• 2:37
  Speaker 2: I think in general yes, but there are some product
• 2:40
  Speaker 2: areas where we're still very heavily dependent on one market.
• 2:47
  Speaker 2: I think for a whole range of reasons, not just politics.
• 2:50
  Speaker 2: It's very wise to have a range of options available,
• 2:55
  Speaker 2: and this free trade agreement is just another new opportunity
• 3:00
  Speaker 2: we've done the UK and the EU in recent times.
• 3:05
  Speaker 2: Had the UAE deal now GCC added to our existing network,
• 3:10
  Speaker 2: we're in a very powerful position and we need to
• 3:13
  Speaker 2: have this flexibility available to us because of the global
• 3:17
  Speaker 2: uncertainty that is inevitable after the election in the US.
• 3:22
  Speaker 1: Well, that's that the do you worry FTAs are going
• 3:24
  Speaker 1: out of fashion, you know, as these protectionist policies come
• 3:28
  Speaker 1: in from more protectionists leaders, prime ministers and presidents around
• 3:32
  Speaker 1: the world.
• 3:33
  Speaker 2: I think the real threat is at a global level,
• 3:36
  Speaker 2: and so there is a willingness by some of the
• 3:40
  Speaker 2: major players to ignore global trade rules set in the WT.
• 3:47
  Speaker 2: But the good news is that we're still seeing a
• 3:49
  Speaker 2: good number of free trade agreements are being negotiated. I
• 3:54
  Speaker 2: think that whoever wins in November and States is going
• 4:00
  Speaker 2: to cause uncertainty which will increase interest in agreements such
• 4:05
  Speaker 2: as CPTPP, and I think a lot of countries will
• 4:09
  Speaker 2: look at a deal we've just done with GCC and
• 4:14
  Speaker 2: be encouraged to negotiate also with the DCCCUS Clearly they
• 4:19
  Speaker 2: are able to negotiate higher quality agreements than people thought,
• 4:22
  Speaker 2: particularly around agriculture.
• 4:24
  Speaker 1: Interesting take. Thank you very much for that, Charles Charles Funny,
• 4:26
  Speaker 1: former New Zealand trade negotiator, on the program,