Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


NZ trade in the red with EU, in the black with China

5 June 2019

New Zealand bought more from the European Union (EU) than it sold in return, resulting in the largest trade deficit of any trading partner for the year ended March 2019, Stats NZ said today.

The trade deficit with EU was at $5.0 billion.

In contrast, New Zealand sold more to China than it bought in return, resulting in the biggest trade surplus of any trading partner at $5.1 billion.

“New Zealand imports many cars and lots of machinery from the EU, which is reflected in our large and growing trade deficit with the trading bloc,” international statistics senior manager Peter Dolan said.

“This contrasts with our expanding trade surplus with China, which is dominated by exports of dairy products, logs, travel services, and meat.”

Overall, New Zealand remained in a goods and services trade surplus with the rest of the world, reaching $1.7 billion in the March 2019 year.

Trade deficit with EU widens

Over recent years, New Zealand has had a widening trade deficit with the EU, reaching $5.0 billion in the March 2019 year. Exports totalled $9.4 billion (11 percent of total exports) and imports totalled $14.4 billion (18 percent of total imports).

“Among our top five EU trading nations, we have trade deficits with Germany, France, and Italy, and trade surpluses with the UK and Netherlands, which you can easily see using our new trade dashboard,” Mr Dolan said.

“The dashboard shows that our deficit with Germany was driven by vehicle imports, while travel services were a major contributor to our trade surplus with the UK.”

The deficit with the EU was mostly due to the high value of cars and machinery New Zealand imported from the region. In the March 2019 year, vehicles, parts, and accessories imported from the EU were valued at $2.4 billion. The EU was New Zealand’s second-largest import market for vehicles, parts, and accessories, behind Japan at $2.5 billion. Mechanical machinery and equipment were also a large contributor to the overall trade deficit with the EU, worth $2.3 billion in the March 2019 year.

New Zealand exported $9.4 billion worth of goods and services to the EU for the March 2019 year. Travel services continued to be the most valuable export to the EU at $2.4 billion, followed by meat and edible offal and fruit.

Trade surplus with China widens

In contrast, New Zealand had a $5.1 billion goods and services trade surplus with China for the March 2019 year, the largest surplus of all our trading partners. Our trade balance with China switched from a deficit to a surplus in 2013.

In the March 2019 year, the top exports to China were milk powder, butter, and cheese, reaching $4.5 billion and accounting for one-quarter of New Zealand’s exports to China.

Logs and wood were the second-largest export, worth $3.1 billion.

Travel was also a significant contributor to New Zealand’s overall surplus with China, worth $3.0 billion. Spending by holidaymakers and international students made up most of this.

“Students from China contributed $1.4 billion to our economy,” Mr Dolan said.

“Our next highest source of student spending was from India at $1.1 billion.”

In the March 2019 year, imports from China were valued at $13.1 billion. Top imports were electrical machinery and equipment (such as mobile phones), mechanical machinery and equipment (such as portable computers), and textiles and textile articles (such as clothing).

The Government Statistician authorises all statistics and data we publish.

For more information about these statistics:
• Visit Goods and services trade by country: Year ended March 2019
• See CSV files for download


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


"Biggest Shake-Up In 30 Years": Agency Teamups In New Public Service Act

Minister of State Services Chris Hipkins today announced the most significant changes to the New Zealand Public Service since the State Sector Act of 1988...

Under the changes, boards, made up of chief executives from relevant government agencies, will be established to tackle the most pressing issues. These boards, or joint ventures, would be accountable to a single minister and receive direct budget appropriations. Public servants from across the system will be deployed as required. More>>


Principals Reject Offer: Primary Teachers Vote For Settlement

Primary teachers have voted to ratify a proposed settlement that will give them pay parity with their secondary colleagues, but disappointed primary principals have rejected a settlement that was unchanged from a previously rejected offer. More>>


Pike River: Weeks Of Work Before Team Gets Beyond 170 Metres

No items of interest have been found in the latest forensic search of the tunnel between 30 and 170 metres, however, both the police and the Pike River Recovery Agency say it has been useful. More>>


Remaking Elections: Call For Four-Year Term, More MPs

A Victoria University report is proposing extending the parliamentary term to four years, and increasing the number of MPs, so politicians can plan better for the future. More>>


Health: Ban On Smoking In Cars With Children Passes First Reading

The Smoke-free Environments Amendment Bill would allow police to issue $50 fines for those smoking with passengers under 18 years of age. More>>


Fair Pay Agreements Good: CTU Releases Report On Sector Bargaining

The Council of Trade Unions has released an independent report conducted by economic research company BERL into the validity of sector bargaining. More>>


Goldsmith New National Finance Spokesperson: Amy Adams To Leave Politics In 2020

Amy Adams has announced she will retire from politics at the 2020 election and as a consequence of that decision she has chosen to stand down from the spokesperson roles she holds in the Party. More>>


Gordon Campbell: On The Government's Cosmetic Banking Reforms

The elephant in the room as the government carries out its latest bout of tinkerings with our banking practice is the extraordinary level of profit-taking still being extracted by the Australian Banking Gang from ordinary New Zealanders. Yes indeed, ... More>>


IPCA: Offensive Language, Misuse Of Pepper Spray

The Independent Police Conduct Authority has found that, following a pursuit in Auckland, a man was dealt with inappropriately and unprofessionally by a Police officer during his arrest. More>>





InfoPages News Channels