Post COVID-19 Trade Environment
The World Trade Organisation is predicting a contraction of global trade flows of between 13-32%. Not surprisingly, therefore many policy makers are predicting a serious global economic contraction over the coming half year which may reduce demand for exports – including from New Zealand.
Unfortunately, we are also seeing a rise in protectionism which will worsen this situation. Over the past six weeks, for instance, at least 75 WTO members have in place more than 100 new protectionist measures. Before the crisis, some estimates indicated that these kinds of protectionism cost our agricultural exporters – including many Māori businesses – up to $6billion a year.
The Ministry of Foreign Affairs and Trade (MFAT) has acted swiftly to recalibrate its trade policy to respond to the crisis. This has been in two parts – the immediate term; and the short to medium term.
In the immediate term, MFAT is working closely with other agencies, including the Ministry of Transport, MBIE, NZTE and MPI, among others, to sustain and support our trade and supply lines, with a particular focus on airfreight. This has included a bespoke arrangement with Singapore.
At the same time, the Minister for Trade and Export Growth, Hon David Parker together with his Singaporean counterpart launched a Joint Statement with nine other Trade Ministers, including Canada, Australia, Chile, Uruguay, the United Arab Emirates and others. This commits to keeping trade routes and supply lines open.
Further practical work has been initiated with our Minister, Singapore, Korea, Canada and Australia on action plans to facilitate customs procedures for exporters; and, in due course, the movement of essential persons.
In the short to medium term during this crisis, MFAT, together with MPI, NZTE, MBIE, TPK and other agencies will be focusing in particular on scaling up and re-tooling its exporter support – the evolving nature of this support is detailed here.
It is important to emphasise, however, that while MFAT and other agencies are looking to ‘retool exporter support’ they want to ensure that this is focused, useful and relevant for business needs, including for Māori exporters.
We would therefore welcome your view on what specifically in practical terms you think Government agencies, like MFAT, NZTE, MPI, TPK and others could do to assist exporters during this challenging period.
