Kia ora tātou,

Te Taumata works closely with MFAT to ensure the views and interests of whānau and Māori exporters are factored into all trade negotiations between New Zealand and the rest of the world.

MFAT sends out regular reports on what's happening across some of New Zealand's key export markets, and we're happy to share some of their latest news here.

As you can read below, we’ve seen strong trading between New Zealand exporters and Taiwan this past quarter, a possible decreasing competitive advantage for New Zealand products in Vietnam, and many companies looking to create more resilience in their supply chains in the wake of COVID-19.

Ka kite anō au i a koutou,

Chris Karamea Insley
 

Taiwan overtook the UK as a New Zealand export market last quarter

The Taiwan-New Zealand goods trading relationship continued to grow through the second quarter of this year, though the impact of COVID-19 meant that happened at a more steady pace than in the first quarter.

As trade with Taiwan grew by 15.16% in the second quarter, Taiwan overtook the United Kingdom to become New Zealand’s sixth largest goods export market for that period.

With other markets disrupted, some New Zealand exporters have found Taiwanese companies more open to buying their new products when offered at a more competitive price than previously. 

Some new wine products from New Zealand are gaining greater traction in Taiwan. One importer told MFAT that he has been successful in getting New Zealand wines into Michelin-starred restaurants.

You can read the full report on the Taiwan market here: https://www.mfat.govt.nz/en/trade/mfat-market-reports/market-reports-asia/taiwan-trade-with-new-zealand-continues-to-grow-24-august-2020/

The impact of the European Union – Vietnam Free Trade Agreement (EVFTA)

Most products currently traded between New Zealand and Vietnam enjoy zero tariffs under the AANZFTA (the ASEAN Australia New Zealand Free Trade Agreement), which has been in force since 2010. The CPTPP, which came into force between New Zealand and Vietnam in January 2019, provided some additional tariff preference wins for a few New Zealand products.

But the introduction of the EVFTA immediately eliminated some tariffs for European exporters to Vietnam, with others reducing over the coming ten years. This, coupled with recent unilateral reductions to Vietnam’s MFN tariff rates, means that New Zealand exporters’ comparative tariff advantage is decreasing.

The full MFAT report is here: https://www.mfat.govt.nz/en/trade/mfat-market-reports/market-reports-asia/the-impact-of-the-european-union-viet-nam-free-trade-agreement-evfta-for-nz-exporters-8-september-2020/

Companies assess the resilience of international supply chains

At the beginning of the COVID-19 pandemic, airport shutdowns, congested ports, empty supermarket shelves, and worldwide shortages of critical PPE highlighted the vulnerability of global supply chains. New Zealand businesses were suddenly faced logistics disruptions, shortages of parts and raw materials and swings in demand, all while also complying with government policies designed to slow the spread of the virus.

A McKinsey survey in the second quarter of 2020, which canvassed 60 senior global supply-chain executives, found 93% of respondents plan to increase the level of resilience across their supply chain as a result of COVID-19.

Read more here: https://www.mfat.govt.nz/en/media-and-resources/publications/mfat-report-international-supply-chains/