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People of Indian origin in New Zealand are making a strong contribution to all aspects of society, and these linkages provide a strong base for advancing economic cooperation between the two countries, the Government says.
OPINION: The International Monetary Fund projects New Zealand’s economy will grow by only about 1% next year, and inflation will continue to be an issue until 2025.
Despite calls to cut back on [government] spending, there are areas where continued investment has yielded results for our economy.
Now is not the time to throw the baby out with the bathwater by stalling good initiatives that could unlock our economic potential.
One of the most significant contributors to our Gross Domestic Product is the export sector.
With an election looming, and potential changes on the horizon, New Zealand’s next government would be wise to understand just how much our export businesses contribute to New Zealand’s economy and continue to support its growth in future.
International trade matters to New Zealand and to New Zealanders. One in four Kiwis are currently working in an export-related role and the sector was worth $89.9 billion in 2022. That’s almost a quarter of New Zealand’s GDP.
On top of that, free-trade agreements will soon cover more than two-thirds of trade when you include our most recent signing with the European Union (EU).
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New Zealand lacks a co-ordinated, long-term strategy to strengthen trade ties with India, says BusinessNZ chief executive Kirk Hope.
ExportNZ last week has released their pre-election report. Included are several recommendations, backed by extensive advocacy, surveying and engagement.
The report recommends further investment is needed in our domestic freight and supply chain system.
Part of that involves advancing infrastructure projects of national significance which would lead to increased capacity. Projects like the Stella Passage Project at the Port of Tauranga would ensure the port has the capacity to support growing goods exports around the upper North Island.
Our trade negotiators have done an excellent job in the past few years, landing agreements with major trading partners through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and free trade agreements with the United Kingdom and the EU.
However, New Zealand is lacking a co-ordinated, long-term strategy to strengthen the bilateral trade relationship with India, which has enormous potential for Kiwi exporters.
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After a failed attempt to land on the moon in 2019, India joined the US, the Soviet Union and China as only the fourth country to achieve this milestone.
We’ve seen the likes of Australia successfully complete trade agreements with India.
While Australia’s negotiations were relatively brief, what most fail to recognise is their 15-year commitment to a strategy of strengthening ties, the high-level ministerial and prime minister’s visits, and strong people-to-people links which ultimately lead to this outcome.
Free trade with India won’t happen overnight, and we’re going to need a strategy from New Zealand Inc. if we’re going to succeed in getting the binding and comprehensive free-trade deal we’re after.
That’s a goal which will take commitment, co-operation and investment.
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Minister for Trade and Export Growth of New Zealand was in New Delhi in August for a bilateral meeting with India’s Commerce Minister Shri Piyush Goyal.
Other than the specific issues above, exporters still face the issues at the core of being a Kiwi business.
They need an education system that produces children who are proficient in literacy, numeracy and school-leavers equipped with the digital skills needed for the modern workplace.
Skilled domestic labour is one thing, but it won’t be enough to shore up the skills gaps in our workforce.
We still have skill shortages at all levels and across all sectors.
Recent surveys of exporters shows a quarter of all respondents are struggling to fill vacancies within their business.
That’s why the next government needs to ensure that business has access to the right skills and talent that they need, whether that be locally developed or talent they need to bring in from overseas.
Simple and permissive immigration settings would increase business confidence and give our exporters the skills and know-how to grow their capacity, expand into more markets, and develop opportunities to grow the skills-base here in New Zealand.
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‘Simple and permissive immigration settings would increase business confidence,’ says Kirk Hope, chief executive of BusinessNZ.
Finally, an innovative economy is a productive economy.
Exporters are constantly redefining what’s possible out of New Zealand and representing us on the world stage.
We’ve seen positive results when the Government works with exporters to come up with new ideas and solutions to historical problems.
The research and development tax incentive and grant has helped businesses access the funds to invest in innovation programmes, and this should be continued by the next government.
The health and future of our export sector is mission-critical to the success of our economy.
There are plenty of great initiatives within the sector underway, and businesses are clear on what they want and need.
We want to see the next government to heed the call, and continue to support exporters and our economy through what is projected to be a rocky year ahead.
Kirk Hope is the chief executive of BusinessNZ.
