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BUSINESS
TRADE DELEGATIONS TO COOK ISLANDS & SAMOA |
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Media Release - NZPBC |
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New Zealand
enjoys its largest regional trade surplus with its 23 Pacific Island
neighbours, of over NZ$ 1 billion. This is one of the few areas where
New Zealand’s exports are growing - in fact New Zealand’s exports to
the world fell in August, resulting in a total merchandise trade
deficit with the world of NZ$ 5.8 billion.
For this and other reasons, two very recent trade missions to the Cook
Islands and Samoa, are very timely. The Chairman of the New Zealand
Pacific Business Council, Gilbert Ullrich, stated that he was very
pleased with the outcome of these missions, as the New Zealand business
delegates reported positive results, whilst commitments to improving
two-way trade were reinforced.
Apart from the Manukau City Council Mayor and delegation, 14 businesses
took part, under the banner of the recently formed NZ Pacific Business
Council (NZPBC). There was a wide variety of businesses represented,
from manufacturers, to building and construction companies, produce
exporters, importers, education institutes, sports facilities
specialists, tourist service providers, civil engineers and other
consultants.
Although NZ enjoys a merchandise trade surplus with its 23 Pacific
Island neighbours of in excess of NZ$ 1 billion in the past year, there
is a considerable imbalance in our two-way trade, to the extent that NZ
imports only 7.5% of what it exports to the 23 Islands ! “So the
purpose of these two trade missions was not only to maintain and build
on that important Island trade, but to begin to actively work towards
improving the amount that NZ imports from the Pacific Islands”, said
Gilbert Ullrich.
This challenge is put firmly into perspective when one looks at New
Zealand’s merchandise trade figures with the Cook Islands and Samoa. In
the past year to August 2005, New Zealand exported NZ$ 77 million to
the Cook Islands, whilst they imported only NZ$ 1.6 million from New
Zealand. Similarly, New Zealand’s exports to Samoa were NZ$ 97.6
million, and our imports from them were just 1.93 million.
If we look back to the 1960s, the picture was somewhat different,
because in 1965, Samoa’s merchandise trade with New Zealand was much
more in balance (ie. their exports were 60% of New Zealand’s exports to
them). |
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Exhibits of NZ products on display at the Cook Islands. Trade
delegation included the Manukau City Council delegation and 14
businesses under the NZPBC umbrella.
(Photo: NZPBC)
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Signing of Memorandum of Coorperation between Samoa Government
and Manukau City Council following a traditional 'ava' ceremony
to welcome the NZ delegation.
(Photo: Lagi Kersoma)
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New Zealand Pacific Business Council (NZPBC) appoints Richard
Maugueret as new executive officer and events facilitator;
facilitating two-way trade between NZ and the Pacific.
(Photo: NZPBC) |
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A similar situation existed with the Cook Islands. A major factor
was that in those days almost all New Zealand’s tropical fruit came
from the South Pacific, especially bananas.
The vessels “Matua” and “Tofua” provided a regular passenger and
freight service, and its inward cargo was substantially tropical
produce. But with major changes in international trade, New
Zealand’s bananas now come from Ecuador and the Philippines, and
mangoes come from Mexico and Peru (via large multi-national fruit
traders). So this, plus other factors, have markedly altered the
balance of this two-way trade.
Probably the most dramatic change in the two-way trade has been the
increase in New Zealand’s exports to the Pacific Islands, as a
result largely of tourist and other developments (requiring building
and construction materials), and a more cosmopolitan society, which
has embraced consumerism. In more recent times, the growth of New
Zealand’s exports to the Pacific Islands has been inflated by the
re-export of goods sourced from other countries, particularly Asia.
The challenge now, is to somehow close the gap in our two way trade,
by making the Islands more self-sufficient, either by providing New
Zealand expertise, or New Zealand investment - or both! This applies
to the “adding of value” to local produce and raw materials, or the
development of the islands’ huge tourist potential.
The trade mission met with the two countries’ Prime Ministers,
Cabinet Ministers, Senior Officials, and business leaders. The fact
that this Delegation was led by Manukau City’s well respected Mayor,
Sir Barry Curtis, certainly opened doors at the highest level of
government, and the presence of long established Pacific traders,
like Gilbert Ullrich, brought local business experience to the
table.
The business delegation actually worked at three levels. The first
was the “opening of doors” (which the Manukau City dignitaries
facilitated), the second was the two day trade shows held in each
country, and third was the one-on-one meetings with appropriate
local business and government people. The trade shows provided
general awareness of New Zealand capability, and this led naturally
to one-on-one meetings, where specific products or projects could be
discussed. Also, there were a wide range of New Zealand businesses
represented, and with their variety of expertise, they could look at
certain projects on a “team approach” basis, to achieve cost
effective, and appropriate commercial outcomes.
The NZPBC recognises that there is going to be huge growth over the
next 5 to 10 years in tourism and new projects (involving both
accommodation and infrastructure). These will include airport
development, hotels and resorts, marinas and related recreation
facilities, as well as improved and larger water supply and effluent
treatment systems. The need for upgrading of sports facilities is
presented with the pending South Pacific Games in Samoa in 2007, and
New Zealand companies should be able to obtain some work from this
significant event, in their areas of expertise. This provides many
opportunities for development, with either existing local
businesses, or the establishment of completely new ventures.
There is a strong feeling, and soundly based, that not only
Americans, Europeans and Australasians, but also an increasing
number of Asians, want to visit the South Pacific, because tourism
has dropped off in Asia, due to tsunamis, SARS, and in some areas
(like Thailand, Indonesia, and the Philippines) real terrorist
threats. In contrast, the South Pacific is seen as a “benign” place,
where tourists can enjoy a relaxed tropical environment, devoid of
the fear of being blown up !
The business delegates have been canvassed, and the feedback has
been universally positive, both in terms of the format of the
mission, and the resulting business outcomes. New Zealand is
generally well regarded in the South Pacific, and we need to not
only maintain that relationship, but also to work at further
developing it. The reasons are threefold. New Zealand is now the
home to the largest Polynesian community (and Manukau City would
have New Zealand’s largest proportion of people of Pacific Island
origin), so we should be increasingly involving this community in
developing their original homelands. New Zealand must protect its
valuable Pacific Islands trade (which currently provide New Zealand
with its largest trade surplus), and ensure that it does not get
displaced by Australia and Asia as their source of imports. We must
also help to build local capability, especially in the “trades” and
“service” areas (like tourism and hospitality), so they can maximise
their natural tourist potential. Associated with that is to further
develop their arts and handicrafts (including somehow licensing
their intellectual property and origin), to prevent blatant
counterfeiting from Asia. And in this context, New Zealand should be
helping to develop and manage the valuable fisheries resources that
others (especially Asia) are currently exploiting.
As a result of the obvious success of these two missions, the NZPBC
is currently planning further Pacific Islands’ Trade Missions for
2006, possibly starting with French Polynesia (Tahiti Nui), and
other larger island economies. Work has also started on planning to
hold a NZ/Pacific Trade Expo in mid March 2006, at the new
TelstraClear Pacific Events Centre, which will involve around 100
trade exhibitors from both New Zealand, and most of the Pacific
Islands. This is a most pro-active approach to developing the
NZPBC’s commitment to genuine “two-way” trade.
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Copyright Event Polynesia Ltd.
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