New Zealand Expands Trade Horizons with UAE Partnership
In a bid to diversify its trade relationships, New Zealand has signed a comprehensive economic partnership with the United Arab Emirates (UAE). This move is expected to boost bilateral trade between the two nations, making the UAE one of New Zealand’s largest markets in the Middle East.
Deepening Economic Ties
According to Prime Minister Christopher Luxon, the agreement presents an opportunity to strengthen the economic bond between the two countries, which have enjoyed 40 years of diplomatic recognition. “We want to deepen and broaden our economic relationship, and the signing of the CEPA and bilateral investment treaty is crucial in achieving this goal,” Luxon emphasized.
Key Exports to the UAE
New Zealand’s main exports to the UAE include dairy products, industrial goods, meat, horticultural products, and travel services. The agreement, set to take effect later this year, will allow 99% of New Zealand’s goods exporters to access the UAE market duty-free.
Trade: The Lifeblood of New Zealand’s Economy
Luxon stressed the importance of trade in driving New Zealand’s economy, citing that one in four jobs in the country are tied to trade. “When we export our products and services, we’re able to pay our workers higher salaries and wages,” he noted. “We need to open up new markets like the Middle East to bring more money back home and afford better public services.”
Economic Challenges and Opportunities
New Zealand’s economy has faced challenges in recent years, contracting last year and entering recession territory in the third quarter. However, Luxon remains optimistic, citing controlled inflation and decreasing interest rates. He believes that the country is poised for growth, driven by strong international trading connections and inbound investment.
Global Trade Uncertainties
When asked about the potential impact of Donald Trump’s return to power in the US and the possibility of tariffs on exports, Luxon adopted a cautious approach, saying he was in “wait-and-see” mode. “We’ll work constructively with the new Administration and wait to see how their tariff policy unfolds,” he said.
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