24 May 2001

Increased funding for diplomatic and trade efforts

Foreign Affairs Minister Phil Goff and Trade Negotiations Minister Jim Sutton today welcomed the extra funding in the budget for diplomatic and trade efforts.

Mr Goff said the Government would commit $7.3 million over the next four years to the new Embassy in Brazil which was a key component in the Latin America strategy.

"Brazil is the giant of South America. It is the 9th largest economy in the world and with 170 million people has the fifth largest population on the planet. Brazil's total import market is worth US$57 billion a year. The opening of this Embassy will be a major step towards boosting the bilateral trade with New Zealand, which was worth NZ$142 million at June 2000.

"Brazil is also a powerful player in international affairs and the presence of a mission will help New Zealand build on already good cooperation on issues such as nuclear disarmament," Mr Goff said.

Extra funding of $1.034 million has been allocated to Trade NZ in 2001-02, $1.878 million in 2002-03, $2.721 million in 2003-04 and $3.565 million in 2004-05.

Mr Sutton said the increase reversed the run-down in Trade NZ's budget by the previous National Government and would help the development and expansion of New Zealand's export trade, as well as our economic, academic, and social links with the rest of the world.

"Exporting is vital to New Zealanders' standards of living and the Government is committed to helping exporters grow their businesses," he said.

ENDS

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