Deepening trade deficit prompts call buy NZ made
Deepening trade deficit prompts call to buy NZ made
The massive reversal in New Zealand's trade fortunes over the past year highlights the failure of the Government's fixation with export-led growth, Green Trade Spokesperson, Rod Donald said today.
Trade figures released today from Statistics New Zealand reveal an estimated trade deficit of $893 million for the year to October, a $1.78 billion turnaround on last year's trade surplus of $892 million.
"New Zealand has experienced trade deficits for seven of the last eight years," said Rod Donald. "What further evidence does the Government need, to convince it that its dependence on free trade is a disaster?
"Our country faces a very difficult future because successive governments have put all their efforts into encouraging exports, instead of putting equal effort into promoting import substitution.
"The only way we can achieve and maintain a sustainable trade surplus is to reduce our dependence on imports by adopting a comprehensive 'Buy New Zealand-Made' strategy.
"Buying local will not only help get our trade balance back in the black, it will also generate employment at the rate of 16 new jobs for every million dollars of import substitution we achieve.
"Buying local makes sound economic sense; running billion-dollar trade deficits do not."