'Huge, untapped opportunities': National pledges new trade deals with seven economies

National is pledging to pursue new trade negotiations with two suites of countries across five continents if re-elected.

Speaking alongside Prime Minister Christopher Luxon and Auckland Central candidate Candace Kinser this morning, National’s trade spokesman – and current Trade Minister – Todd McClay named seven economies their party would prioritise trade talks with in an effort to secure more opportunities and remove barriers for New Zealand exporters.

The first tranche identifies Brazil, Switzerland, Argentina, Bangladesh, Nigeria, Uruguay and the European Free Trade Association (Iceland, Liechtenstein and Norway) as “priority markets” that collectively represent 700 million people with a combined gross domestic product (GDP) of more than US$5 trillion ($8.76t).

A second tranche, consisting of South Africa, Turkey, Colombia, Morocco, Sri Lanka and Mauritius, would be a priority to advance over the next decade.

Together, McClay touted the 13 countries and their inhabitants as “New Zealand’s next billion customers”.

“New Zealand is a trading nation. We create jobs and lift incomes by supporting great Kiwi companies to compete on the world stage for a rising share of global trade and investment,” McClay said.

National has pledged to prioritise trade deals with seven new economies if re-elected. Photo / Sylvie Whinray

“Trade is not about what leaves our ports, it’s about what comes back into our communities.

“When Kiwi businesses sell more to the world, they are able to grow and create more jobs and pay wages that are invested back into the community.”

McClay said Luxon had succeeded in his promise to secure a free trade deal with India in the Government’s first term despite facing headwinds.

“National’s trade agenda has supported rapid growth in exports, which have risen from $94.4 billion to $114.1 billion, on track to exceed our goal of doubling the value of our exports by 2034. But National is ambitious for more,” McClay said.

“The seven markets we have identified offer huge, untapped opportunities for New Zealand exporters. Our exports to these countries are currently worth just $1.8 billion, demonstrating the scale of the opportunity for our exporters.

“A re-elected National Government will prioritise commencing negotiations with each of these seven markets in the next five years to secure better access for Kiwi companies, boost exports, create jobs and lift incomes.”

Luxon highlighted massive, untapped export opportunities for New Zealand businesses in these markets.

“What Todd’s proposing is that we infill the bits in Europe ... high-value consumers that we don’t currently have locked up through the EU or the UK FTA [free trade agreement].

National's trade spokesperson Todd McClay outlined 13 countries as "priority markets" they would pursue in two tranches. Photo / Mark Mitchell

“Certainly we want to have an anchor in South America now with Brazil, Argentina and Uruguay.

“And then when you look at Nigeria, one of the fastest growing economies in the world ... that’s a clear anchor and a clear priority for us to focus on there, along with Bangladesh as two of the big emerging Global South economies.”

The announcement comes six days before Indian Prime Minister Narendra Modi makes a whistle-stop visit to New Zealand, amid swirling contention over the FTA both countries recently signed.

Luxon recently confirmed Modi would arrive in Auckland on Friday and depart the next day, marking the first such visit by an Indian Prime Minister in 40 years.

While Luxon told reporters he was looking forward to Modi’s arrival, saying he would be “incredibly well-received across the country”, the coalition Government’s disagreement over the FTA and its contents continues to overshadow the visit.

Foreign Affairs Minister Winston Peters – whose party, New Zealand First, strongly opposes the new deal – recently alleged National ministers were “covertly” tightening immigration settings for Indians off the back of “poor polling”.

“We told the New Zealand people that [the deal] would mean open-slather immigration from India to New Zealand,” Peters said in Parliament.

“But the National Party has just changed its course – no doubt due to poor polling – and they have done so covertly.”

Immigration Minister Erica Stanford later warned the coalition’s infighting could be potentially damaging to New Zealand’s relationship with the Indian government.

“I certainly don’t think it’s helpful for the relationship that we have with the Indian Government for this to be playing out; it’s not helpful at all,” she told reporters at Parliament.

“I’m just trying to do my best as the Immigration Minister to try and work out what it is that Mr Peters wants.

“I’ve made decisions around tightening up to make sure that I’ve tried to keep everyone happy and now he’s not happy with that.”

In response, Peters rejected Stanford’s version of events and urged journalists to request the relevant documents.