6. TIM GROSER (National) Link to this
to the Minister of Trade
Can he confirm the $2 billion trade deficit between New Zealand and China referred to by the Minister of Foreign Affairs at APEC last week, and what steps are being taken to address any trade deficit?
Hon PHIL GOFF (Minister of Trade) Link to this
All countries run trade surpluses with some, and deficits with other, trading partners, as the member, of course, knows well. New Zealand has a deficit in merchandise trade with China, but a surplus in services trade. Trade with China through Hong Kong also runs at a surplus. The negotiation of a free-trade agreement with China and the recent opening of the New Zealand Focus centre in Hong Kong are two examples of the steps being taken to increase New Zealand exports to China.
Given the statement made by the Prime Minister: “The Foreign Minister, by necessity, is often a point of contact with other Governments,” did the Minister of Trade expect the Minister of Foreign Affairs to outline the Government’s position on a free-trade agreement with China when he met China’s Foreign Minister at the APEC meeting last week, notwithstanding New Zealand First’s well-known opposition to such agreements?
If I recall rightly, the Minister of Foreign Affairs pointed out to the Chinese Foreign Minister that he was dealing with foreign affairs, and that my colleague Jim Sutton and I were dealing with trade.
Dianne YatesWhat impact would a free-trade agreement with China have on merchandise trade, and why? [ Interruption]
Madam SPEAKERI am just waiting until the interjections stop. Modelling indicates that New Zealand exports to China would lift by something between $260 million and $400 million per year, while imports from China would increase by between $60 million and $100 million per year. As China’s tariffs are much higher than New Zealand’s, tariff removals on both sides would, clearly, benefit New Zealand exporters more.
Can the Minister tell the House, in the light of the somewhat more cautious statements made by the Prime Minister last week regarding progress towards a free-trade agreement with China, what he regards as a reasonable time frame for such an agreement to be reached?
I do not think I would characterise the Prime Minister’s statements as being more cautious; in fact, they are entirely consistent with what she has said since she first reached agreement with President Hu from China to enter into these agreements. My advice from officials is that the negotiations, which are entering their fifth round at the end of this month, are on track. They are about where we would expect them to be. The Prime Minister has indicated that she is always reluctant to put a time frame on these things. We are, as the member knows, the first OECD country to enter into free-trade negotiation with China, and, therefore, anything we decide will be a precedent for the future. That means that both sides will be relatively cautious in negotiating this arrangement.
What is the largest component of New Zealand’s imports from China, and why have imports from China been growing?
Interestingly, the largest single component of imports from China, and the one that has grown most rapidly, is computers. Imports from China have grown overall because it has produced merchandised goods that are attractive to New Zealand consumers, and at cheaper prices than New Zealand can import those same goods from other countries.
Hon Murray McCully Link to this
Has the Minister seen a column in the New Zealand Herald this week,writtenby Audrey Young and referring to events at APEC, which stated: “Under a private agreement between Peters and Labour, the only person who can supersede Peters is Clark. But Goff came close this week, in substance if not form,”; and can he please give the House details of this agreement, which sets the rules for dealings between the Government and the Minister of Foreign Affairs?
Hon Murray McCully Link to this
Has the Minister seen the statement attributed to his ministerial colleague Mr Peters, who told a New Zealand Herald reporter at APEC: “Mr Goff has just called me to say that what you wrote in [today’s] was a load of ‘inventive bullshit’.”, and can he please tell the House what he said to Mr Peters that would have caused such an outburst?
I of course would not repeat such language in the House, but I think that was a generally accurate account of what I had told Mr Peters.
Hon Murray McCully Link to this
Has the Minister seen an assessment of the APEC meeting by the President of the New Zealand First Party, Mr Dail Jones, who said: “If the situation has destabilised with New Zealand First, then people like Phil Goff would hope to be the winners.”, and can he tell the House whether this, in any way, helps to explain his actions at the APEC meeting?