Thank you to everyone who joined the conversation at the Europe Business Summit, which took place on 26th July at the Pullman. This summit was brought to you by NZEBC (New Zealand Europe Business Council) and the Auckland Business Chamber, and is designed to empower business leaders like you to explore and optimise business opportunities between Europe and New Zealand.
Please find below a debrief from our GNZCC CEO Monique Surges and Business Development Manager Erin Daly.
There is no denying, we are living in interesting times.
As New Zealand emerges limping and indebted from the economic ravages of covid-19, increased geopolitical insecurity in our Pacific backyard and the global trends towards protectionism, the Europe Business Summit, held in Auckland, offered a ray of optimism.
With a lineup of notable speakers representing the architects behind NZ/EU trade dialogue, amongst others the EU Ambassador H.E Nina Obermeyer, NZ Chief Negotiator Vangelis Vitalis and former Trade Minister Tim Grosser, we gained insights into the decades of work which have brought New Zealand and the EU to the finish line of a hard-won agreement (it came down to “cars and cows”).
Auckland Business Chamber CEO, Simon Bridges, kept the audience engaged with his quick wit and observations. Pleasingly the German New Zealand Chamber of Commerce members dominated the audience, as well as being involved in the various panel discussions (Monique Surges GNZCC, Melanie Salberg, Brenntag NZ and Gareth Edgecombe, T&G Global).
From policy to real-world application, we heard from some of the NZ export heavyweights such as Zespri who with the reduction of the 8.8% kiwifruit tariff, will save a cool $NZD 44 million per year. From the established players such as T&G Global, Kumeu River Wines and Wilson Hellaby Ltd, we also had the opportunity to hear from those breaking new ground: Helius Therapeutics who supplying NZ grown medical cannabis to the world’s largest market (Germany). There was also a fantastic line up of European companies such as German subsidiary Brenntag and Belgium Parkwind, who are actively assisting the government in developing our legal framework for developing our offshore wind sector.
The EU-NZ FTA is about much more than tariff reductions (although $NZD 1.8 billion in additional revenue per annum will certainly be welcome). An FTA gives companies legal certainty and stability to create long-term trade relationships, which is backed by a government-to-government agreement. New Zealand stands to gain a huge 80% increase in foreign direct investment (FDI) over the next decade from Europe, as well as a 30% increase in trade. New Zealand has a long history of trade with Europe, being our 4th largest trade partner, but New Zealand has always been at a disadvantage due to the lack of an FTA. Despite that, over 400 New Zealand companies are already exporting products to the European Union. Another 400+ European subsidiaries are currently based here in New Zealand, bringing innovative technology and jobs – in Germanys case with over 145 Subsidiaries, 10,000 jobs for local New Zealanders.
This new FTA is also a groundbreaking agreement, setting new standards for the global community. For the first time sustainability of supply chains has become a central tenant to a free trade agreement. That will have a whole host of implications for exporters, but with every challenge comes an opportunity. It is also the first FTA to recognise indigenous trade and economic cooperation. More than a simple economic relationship, this agreement strives towards enabling a more equitable world.
David McAllister, German politician, and member of the European Parliament delivered the final keynote address for the evening, reminding guests that trade policy is the strongest instrument in the EU policy toolkit. With the illegal invasion by Russia into Ukraine, the EU has learned the danger of trading too closely with a non-democratic partner. The EU is now having to define and assert its global position and interests, based around the rule of law, democracy, and fundamental human rights, and is looking to become more resilient by trading with like -minded partners such as New Zealand. They see a moral obligation to provide support to the South Pacific, creating geo-political stability and climate change support to those most affected by the pollution of bigger nations.
McAllister assured guests that New Zealand stands to gain plenty when the EU-NZ FTA goes into effect. Not only in terms of levelling the playing field for NZ goods and services into Europe, or an influx of investment from our European partners. There is knowledge transfer, scientific collaboration as part of Horizon Europe and increased regional and global stability.
And finally, he reminded us that there are plenty of hurdles and difficult conversations ahead – “let us tackle these together.”
- by Erin Daly & Monique Surges