Latest news with #ToddMcClay
Newsroom
2 days ago
- Business
- Newsroom
Confusion as NZ becomes midpoint on China route to South America
China Eastern Airlines and Auckland Airport have announced the much-discussed Southern Link to South America will open by the end of the year, with the NZ Government helping with a new electronic transit authority in place of pricey visas. The Government backs the Southern Link as part of its effort to grow the number of Chinese tourists coming to New Zealand, with the new route expected to bring an additional $48 million in annual visitor spending. 'This new connection to Auckland between the dynamic economies of Asia and South America, is a great step forward and will support a more resilient and diverse aviation network that benefits travellers, trade, and tourism,' Prime Minister Christopher Luxon said. This Southern Link, which connects China and South America – via New Zealand – has long been discussed, being championed by the New Zealand China Council, among others. But even as recently as March the Government said it had no plans to advance the idea of making New Zealand an air and maritime transport hub between these regions. At the time, Trade Minister Todd McClay said the idea was not on the Government's agenda. 'It's not something we've been considering, but I know that the Mayor of Auckland, [Wayne] Brown, is a big fan of it,' McClay told The Post. Meanwhile, Christopher Luxon said it was up to airlines to make it work on their own. And it seems that now they have, with state-owned China Eastern committing to two flights a week from Shanghai to Buenos Aires, via Auckland, starting in December. While some were already hailing the benefits of the long-mooted link, others were warning of the potential dangers of New Zealand facilitating the connection. The idea of this link has long courted controversy in New Zealand because of the part it plays in China's Belt and Road Initiative – a global economic and infrastructure expansion plan. And while New Zealand has not shifted from its vague, quiet position on the Chinese Communist Party's plan, China sees things differently. During the announcement, China Eastern Airlines Chairman Wang Zhiqing said, 'we will be committed to … mutual exchanges and high-quality Belt and Road initiatives'. A spokesperson for the Ministry of Foreign Affairs and Trade said the foreign policy position on Belt and Road was unchanged. 'The New Zealand Government is not developing BRI initiatives.' NZ is somewhere at the top of the world in this Trip-com presentation to PM Luxon in Shanghai. Photo: Laura Walters The ministry spokesperson did not respond to questions about why China might be referring to the Southern Link in the context of the BRI or any response to concerns raised about the hub's potential for dual use. 'We welcome expanded air connections between China, NZ and South America. 'This is a commercial deal between Auckland Airport and China Eastern.' If China is to be believed, the Southern Link is the latest to join a long list of Belt and Road projects with New Zealand, irrespective of NZ's stance. Beyond the Southern Link, the Asian superpower has claimed to have signed a whole swathe of Belt and Road Initiative agreements with Auckland Council. But when Newsroom spoke to Auckland Council about these claims last year, it said no such thing had happened. In 2019, the China Daily newspaper even claimed a Belt and Road Initiative had 'revitalised' a small Waikato town, after a Chinese food company set up an ice cream factory in the small Waikato town of Kerepehi. As far as records show, New Zealand does have one official Belt and Road agreement, in the form of a joint kiwifruit laboratory between Crown research institute Plant & Food Research and Chinese scientists in Sichuan province. The China-New Zealand Kiwi 'Belt and Road' Joint Laboratory isn't called that in New Zealand, but the name was upgraded in China in 2018, giving the lab local status and access to funds. Last year, University of Canterbury China expert Professor Anne-Marie Brady said though New Zealand had stopped progressing work on the Belt and Road Initiative, Mfat's language on the controversial united front strategy was purposefully vague. It allowed the Government to say nothing and do nothing, rather than openly reject the initiative and risk upsetting China. But in a submission to Parliament's Justice select committee on foreign interference in elections, Brady recommended New Zealand take a more explicit stance on the BRI. 'The continuance of the current policy of 'saying but not doing' is causing confusion and risks local governments acting against national interests. The MoA signed with China is simply an agreement to discuss, and nothing more.' In March 2017, the National government signed a 'memorandum of arrangement' with Chinese premier Li Keqiang outlining a proposal for the two countries to work together on the BRI. Launched by President Xi Jinping in 2013, the trillion-dollar initiative was then focused on developing Chinese-led infrastructure projects and other economic initiatives around the world, on ancient land and sea routes which formed part of the Silk Road. The agreement required the two countries to develop a Belt and Road work plan within 18 months of its signing, but the plans slowed when the Labour-led government took power at the end of 2017, as foreign affairs minister Winston Peters shared his reservations about the project. The agreement auto-renewed in March 2022 for a period of five years. But New Zealand was not pursuing any projects, or raising the BRI in discussions with Chinese counterparts. Brady was among a group of China experts warning against the Belt and Road expansionary plan, including the Southern Link. In a foreign policy paper published this year, Brady warned of the capability for dual-use of these types of hubs in the Pacific. 'Control over Pacific ports, airstrips, and ICT systems could serve dual-use purposes, enabling transit, logistics, and expanded influence in the US backyard,' she said, adding that as China turned its attention to the global south it was increasingly bringing countries in Latin America and the Pacific into the Belt and Road Initiative. China has actively promoted this Southern Link strategy, trying to influence public opinion in host countries, like New Zealand. But former head of the NZ China Council and executive director of the NZ International Business Forum Stephen Jacobi said this had little bearing on Southern Link which was purely an economic and commercial proposition. Jacobi, who was a long-time proponent of the link said he was delighted to see the news. It was clear that to make it work the parties needed to find an airline that would step up and establish some flexibility on transit visas. Off the back of stronger airline connections, other parties could now work to build an airfreight and transhipment hub, which would bring additional benefits, he said. Whether this route would be sustainable could now be tested, Jacobi said, adding there was ample (and growing) traffic between Latin America and China to make it work. From the perspective of the bilateral relationship, it was important New Zealand continued to build links and connections beyond trade. 'If we simply regard China as a market to sell things to, we make ourselves even more vulnerable to geo-political and geo-economic shifts.' If the Government was really serious about 'going for growth' New Zealand needed to pursue the opportunities that came as the relationship deepened. The announcement of the Southern Link route, as well as the Government's decision to do away with the $235 transit visa, were two of a series of announcements, deal signings and events geared towards lifting tourism back to pre-Covid levels. There were 245,000 visitor arrivals from China in the year to February, making it New Zealand's third-largest tourism market. But things still hadn't bounced back to where they were before the pandemic. Luxon even named getting 'share of mind' in the international education and tourism markets as the key objectives of this trip. Before the Prime Minister touched down in China he announced a new 'Parent Boost' visa that would allow family members a five-year, multi-trip visa. On the eve of the trip, the Government announced a visa waiver trial for Chinese passport holders visiting from Australia. But it's not the full visitor visa waiver China wanted, as China had granted New Zealand. The issue would no doubt be raised again by political leaders later in the week, but vice president Edison Chen beat them to it by raising that visa waiver to the Prime Minister (again). Luxon laughed it off, saying he appreciated the pitch. But Luxon found himself talking in code during the subsequent media conference, just saying he was 'comfortable' with Immigration NZ's decisions when he was repeatedly pushed on why the Government stopped short of granting a full visitor visa waiver. Newsroom understands the risk profile of Chinese travellers had a part to play, but neither the Prime Minister nor his ministers could say that without offending China. Luxon pushed back at the focus on the visa waiver issue, saying lifting tourist numbers was largely about growing share of mind. 'I just think you actually need to think through how do you actually build markets, and how do you grow businesses? And a lot of it, when you're in 195 other countries in a competitive race, it's about: how do you lift the profile of New Zealand?'
Scoop
3 days ago
- Business
- Scoop
New Certification Scheme Unlocks $200M Market For Kiwi Cosmetics In China
Hon Todd McClay Minister for Trade and Investment Hon Scott Simpson Minister of Commerce and Consumer Affairs Trade and Investment Minister Todd McClay and Commerce and Consumer Affairs Minister Scott Simpson have welcomed a new certification scheme, announced by the Prime Minister in Shanghai today, that unlocks access to China's $200 million cosmetics and skincare market — a move that will drive stronger returns for New Zealand exporters and boost the economy. 'This is a smart, practical step that removes a long-standing trade barrier and opens up valuable new channels for our exporters,' McClay says. 'It means more high-quality, innovative New Zealand products on shelves in China - not just online, but in stores across one of the world's fastest-growing consumer markets.' The scheme, developed with International Accreditation New Zealand (IANZ) and the Ministry of Business, Innovation and Employment (MBIE), provides exporters with a Government-issued Good Manufacturing Practice (GMP) certificate that meets Chinese regulatory requirements. 'This certification allows Kiwi-made cosmetics to be sold through traditional retail channels in China, significantly expanding market reach beyond cross-border e-commerce and supporting our goal of doubling exports by value in 10 years,' Mr McClay says. Minister Simpson says the scheme is a strong example of the Government's commitment to backing New Zealand businesses and removing barriers to growth. 'With global demand for health and beauty products rising, this gives our exporters the confidence to grow and compete in China; quickly, credibly, and at scale,' Mr Simpson says. 'It's another example of how we're cutting red tape and aligning our standards with key trading partners to give Kiwi firms the certainty they need to succeed.' How it works: Exporters complete an independent GMP assessment with IANZ. If successful, MBIE confirms compliance with a certificate signed on behalf of the Government. New Zealand's ban on animal testing for cosmetics remains in place, giving Chinese consumers assurance that Kiwi products are high-quality, safe, sustainable, and ethically produced.
RNZ News
4 days ago
- Business
- RNZ News
Todd McClay unveils two-way forestry trade missions with India
New Zealand exports to India last year included forestry products valued at $126 million. Photo: 123RF Forestry Minister Todd McClay has unveiled two-way forestry trade missions with India this year. The inbound visit - supported by industry partners - is expected to showcase New Zealand's forestry systems and sustainable management practices. "The outbound mission will continue to open doors for deeper commercial and government partnerships," McClay said. "These [trade missions] are aimed at strengthening trade links, deepening industry ties and unlocking greater value for both countries' forestry and wood processing sectors." McClay was speaking at the Fieldays Forestry Hub on Friday. Trade between New Zealand and India was valued at $3.14 billion in 2024. New Zealand's exports to India last year included forestry products valued at $126 million. New Zealand's wood exports to India have surged from $9.5 million in 2023 to an estimated $76.5 million this year. Pulp exports have more than doubled, from $20 million to $45.6 million. "India is one of the fastest-growing markets for our forestry exports - and we're focused on turning that growth into long-term opportunity for New Zealand exporters," McClay said. "Increased engagement with India is already delivering results," he said. "We're now building on that momentum with a targeted sector focus, including hosting an Indian delegation in New Zealand and planning a minister-led mission to India later this year. "Our relationship with India is a priority, and forestry is a key part of that. The goal is clear - to grow the market, remove barriers and drive better returns back to New Zealand's foresters and processors." New Zealand signed a new memorandum of cooperation with India during Prime Minister Christopher Luxon's visit in March, indicating a commitment to enhance forestry sector collaboration between the two countries. "Many of our forestry exporters have long-standing relationships in India and are keen to expand," McClay said at the time. "This agreement will lay the groundwork for cooperation in sustainable forest management, agroforestry, research and innovation, education, and capacity building."
Barnama
4 days ago
- Business
- Barnama
New Zealand, Indonesia Sign Halal Trade Agreement
WELLINGTON, June 16 (Bernama-Xinhua) -- New Zealand and Indonesia have signed a landmark halal cooperation agreement aimed at strengthening trade ties and unlocking new opportunities for New Zealand's red meat and dairy sectors, according to the New Zealand government on Monday, reported Xinhua. Indonesia, with its population of 280 million and rapidly growing middle class, imported over NZ$1.1 billion (US$664 million) in New Zealand dairy and meat products last year, said New Zealand Agriculture and Trade Minister Todd McClay. The new Halal Cooperation Arrangement will streamline halal certification and product assurance processes, making it easier for New Zealand exporters to access the Indonesian market, said the government statement.
Scoop
5 days ago
- Business
- Scoop
New Halal Agreement Unlocks Opportunity In Indonesia
Hon Todd McClay Minister for Trade and Investment Minister of Agriculture The Government has signed a new halal cooperation arrangement in Jakarta over the weekend to strengthen trade access to Indonesia and create new opportunities for New Zealand's red meat and dairy exporters, Agriculture and Trade Minister, Todd McClay announced today. 'Indonesia is an important growth market for dairy and meat products – worth over $1.1 billion in exports last year. With a population of 280 million and a large middle-class Indonesia is a focus market for the Government,' Mr McClay says. The Halal Cooperation Arrangement (HCA) supports ongoing collaboration between New Zealand and Indonesia on halal standards, certification, and product assurance – helping exporters meet requirements and streamline trade. 'There's huge potential for our premium products, and this agreement will give exporters confidence in maximising that opportunity.' 'Importantly, the HCA was developed with close input from our dairy and red meat sectors —delivering value for our world best producers,' Mr McClay says. 'This is another step in our plan to grow the economy by boosting exports and delivering stronger returns for Kiwi farmers and processors.' 'When rural New Zealand does well, all New Zealanders do well.'
