Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Guy: Latin America Business Breakfast

Nathan Guy

24 April, 2013

Speech to Latin America Business Breakfast, Wellington Chamber of Commerce

Good morning,

I would like to thank the Wellington Chamber of Commerce for organising this event. This event comes off the back of the Prime Minister’s trade mission to Latin America, where we visited four countries over 10 days – Mexico, Colombia, Chile, and Brazil.

The mission was a great success. Strong relationships were formed, or strengthened, both at the political and at the business level.

At the political level, a highlight was Colombian President Santos publicly expressing his desire for a Colombian-New Zealand Free Trade Agreement. On the business front, 139 meetings took place, this resulted in 49 leads which are likely to lead to new business.

I’m keen to see continual progress made on this mission. I am determined to do what I can to help New Zealand businesses succeed in Latin America.

Boosting exports

New Zealand is a small economy that relies on trade. If we are to increase our living standards, create more jobs and become more prosperous, then we need to grow our exports.

This is a key focus for this government. It is why we have set a very ambitious goal of increasing our exports from 30% of GDP to 40% by 2025.

It is also why we have a dedicated work stream under the Business Growth Agenda focused on building export markets. This work stream consists of a wide range of projects. There is no silver bullet. We need to do a lot of things, and we need to do them well.

One of the key projects underway at the moment is the creation and delivery of a New Zealand story. New Zealand has a strong reputation overseas. We need to leverage this reputation and have a consistent brand story that NZ Inc can take overseas. We need to articulate what New Zealand is about, and why we are good to do business with.

Another key project is to increase the number of Ministerial-led trade missions. Since July 2012, 28 trade missions have been delivered including 13 Ministerial-led missions. These missions are crucial for opening doors, strengthening connections, and resolving any market access issues in a timely manner.

The Prime Minister has just come back from a very successful China mission, where New Zealand and China reaffirmed our goal of increasing two way trade to $20 Billion by 2015. I intend to follow up on his mission in the middle of the year.

We are also progressing a number of free trade agreements, including our most ambitious negotiation to date – The Trans-Pacific Partnership. This negotiation now involves 13 countries across the Asia-Pacific, with Japan joining over the weekend.

The TPP is not just about reducing tariffs, although that will be important. We are committed to a shared goal of a comprehensive, high-ambition, next-generation agreement. It is about increasing the business competitiveness of the region. It also has an end prize of over $2 Billion.

Last week the Prime Minister announced that we will be investing an additional $158 million over four years into tourism in Budget 2013.

This new funding will boost our marketing of New Zealand to the world, encourage investment, bring more international events to our shores, simplify visa processes and attract more high-value tourists.

However, improving our competitiveness is not just about improving access to overseas markets. It is also about creating the best environment here in New Zealand to enable our businesses to succeed.

In my Primary Industries portfolio the Government and industry have collectively invested $650 million into primary sector innovation through the Primary Growth Partnership.

This $650 million investment is expected to bring returns to the New Zealand economy in the order of $7 Billion. That is, for every dollar the Government and Industry put in, we are expecting to see $11 benefit.

Another key feature of my portfolio is investing in irrigation infrastructure. The drought, and recent downpours shows that New Zealand doesn’t have a water shortage issue; we have a water storage issue. The fact that New Zealand only stores 2% of the annual rainfall illustrates the potential gains in this area.

That is why we are investing $400 million to increase irrigation across 420,000 hectares and unlocking $4 billion of extra export potential by 2026.

This $400 million investment will be funded from the Future Investment Fund which allocates the returns from the Mixed Ownership model.

I believe that this is a clear example of the way in which this Government is thinking strategically about investing in our future. The proceeds from selling 49% of some of our energy companies will be invested in crucially needed infrastructure that will support future generations.

Latin America

I’d like to make a few observations from the mission to Latin America.

Firstly, the market opportunities are vast. The four countries we visited had a combined population of 372 million people, and a combined GDP of US$4 trillion.

They are also growing, and growing fast. Mexico, Colombia and Chile are growing on average by around 5% per annum.

This growth in wealth will mean an increase in demand for the things that New Zealand produces.

New Zealand is well-placed to take advantage of these opportunities. We have a strong brand in Latin America. Their perception of New Zealand is that we have a transparent and accountable government; and that we are world leading in providing a competitive business environment. This is consistently backed up by our high rankings in global Ease of Doing Business surveys.

More importantly New Zealand’s brand in Latin America is one of trust and integrity. In my opinion it is crucial that we maintain and build upon this reputation.

There are plenty of opportunities to take advantage of.

Mexico offers a strategic opportunity into the USA market, one that a number of New Zealand companies are already taking up. It is our largest Latin American trading partner and it is great news that they have joined the TPP negotiations. This now means that three Latin American countries are involved in the negotiations.

Colombia is a vastly different place to what it once was. Its security situation is improving. It has a young and highly educated population, has great resource potential, and is focused on becoming an economy that welcomes investment and is business friendly. Analysts also say that it is on track to become South America’s 2ndlargest economy.

I view our relationship with Chile as one of cousins, and we can build on this relationship. I see great opportunities to collaborate in the agricultural, education and natural resource sectors. Chile is also realising that it needs to invest in better water storage infrastructure, and has been investing heavily in geothermal energy.

Brazil is not an easy place to do business, but is has amazing potential. It is has a global GDP ranking of 7th, and is projected to increase to 5th. There are a number of New Zealand companies doing business in Brazil, and New Zealand investment in Brazil has reached $NZ350 million.

Conclusion

New Zealand has historical links with Europe and North America. Over the last ten years we have come to realise that Asia is on our door step and offers huge opportunities. I believe the time has come for New Zealand to look across the other side of the Pacific to the awakening Latin American Giant.

Globalisation has changed where New Zealand sits in the world. We are firmly in the centre of the hub of global activity – The Asia-Pacific. And we need to make the most of this opportunity.

As a government we are here to support businesses who are looking to export. Whether it is providing a competitive business environment, reducing export barriers, or through the work done by New Zealand Trade and Enterprise and the Ministry of Foreign Affairs and Trade.

But the government can only do so much. It is businesses that grow exports, not the government. The businesses who came on the mission were chosen because they had done business in Latin America, and were looking to expand. There are representatives from these businesses in the room. I encourage you all to make the most of these contacts.

I look forward to hearing about the continued progress of New Zealand businesses in Latin America.

Thank you.

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Issue 49: Werewolf Weekender

Philip Matthews: From The Lost Continent
It’s a case of better late than never for Olivier Assayas’ marvellous After May/Apres Mai, which first screened at Venice in 2012, had a couple of North Island screenings last year during the International Film Festival’s “Autumn Events” season, got a theatrical release in Australia – but not here – and only now appears on DVD, after Assayas himself has moved on. More>>

The Complicatist: Blue Eyed & Soulful
For a while in June, the top two singles on the US Billboard charts featured Iggy Azalea, an Australian model turned hip hop performer. To some, this may seem like just the latest chapter in a long saga of whites ripping off black culture, while enriching themselves in the process. Obviously, there’s some truth in the stereotype. Yet it can also obscure the positive collaborations – in jazz, soul music and hip hop – between musicians who treated each other as creative equals, race regardless. More>>

Satire: Carry On Captaining
Oh hello. Scanner Technician Davis. To what do I owe the pleasure?
You think we’re what?
Oh, pish. This vessel has been travelling along smoothly for generations – particularly smoothly in the last few years though I say so myself – and I happen to know we have never once been hit by an asteroid... More>>

 

Parliament Today:

False Electoral Return: John Banks Sentenced To Community Detention, Community Work

“The conviction of John Banks today is another sad chapter for John Banks and the ACT Party”, says Labour candidate for Epsom Michael Wood. More>>

ALSO:

Gordon Campbell: On The Rise Of ISIS And Labour

While global attention got distracted by the fate of MH17 and the atrocities in Gaza, the world’s other mega ‘bad news’ story – the rise of ISIS-led fundamentalism in Iraq – has reached a tipping point. More>>

ALSO:

Rebuild: Christchurch City Council Releases Milestone Report

The Cameron Partners report says the Council may need to find an additional $783 million to $883 million by 2019... Options Cameron Partners proposed include increasing rates, borrowing more, maximising insurance payments, and freeing up capital from its commercial assets. More>>

ALSO:

Parliament Today: Parliament Adjourns

The 50th Parliament has adjourned for the final time. After the completion of the adjournment debate, MPs left for the campaign trail with Parliament to be dissolved on August 14 ahead of the September 20 election. More>>

ALSO:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news