The cattle were photographed in New Zealand. Agriculture plays a major role in New Zealand's economy, especially when it comes to exports.
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New Zealand's Prime Minister told CNBC that the country must look beyond its own backyard for business opportunities, as the South Pacific island nation signs an economic partnership with the United Arab Emirates.
Prime Minister Christopher Luxon views the free trade agreement, officially known as the Comprehensive Economic Partnership Agreement (CEPA), as an opportunity to expand bilateral trade between the two countries and make the UAE one of the island's largest markets in the Middle East.
“We have had a long-standing relationship over 40 years of diplomatic recognition, and the opportunity we have now is to deepen and expand economic ties,” Luxon told CNBC on Monday.
“That's why signing CEPA as well as the BIT is really important, because these two small developed economies in the world actually have a lot in common and
“There are a lot of shared values, and we want to be able to work together and build that relationship.”
New Zealand's major exports to the UAE include dairy products, industrial products, meat, horticultural products and travel services. The government said when announcing the deal. The agreement, which is expected to come into effect later this year, comes as the government aims to double the value of exports within 10 years. She said the EPA and EPP would mean 99% of New Zealand exporters of goods would be able to access the UAE market duty-free.
“This includes all New Zealand dairy, red meat, horticultural and industrial products once the agreement enters into force,” he noted.
“One in four of the jobs we have in New Zealand is largely related to trade,” Luxon, head of the centre-right New Zealand National Party, which has been in power since late 2023, told CNBC's Dan Murphy in Abu Dhabi on Monday.
“When you see a New Zealand company exporting to the world, they are able to pay their workers
Salaries and wages are 7% higher, and our companies are often more productive. The message to people back home is that they understand that we are a commercial nation. “We don't get rich just selling things to each other in the South Pacific or within New Zealand,” he said.
“We actually need to send great products and services out into the world, which are in huge demand, and make sure we open up new markets like the Middle East to get those products as well. By doing that, we bring more money back home,” Luxon added. “This is clearly how we can provide better public services such as health and education.”
New Zealand needs an economic boost after its economy contracted last year and entered recession territory in the third quarter. The economy contracted by 1% in the July-September quarter. Data released in December showed.
This decline came after a 1.1% contraction in the previous quarter. Negative growth for two consecutive quarters is widely considered a technical recession.
WELLINGTON, NEW ZEALAND – NOVEMBER 03: Incoming Prime Minister and National Party Leader Christopher Luxon speaks during a media pause in Parliament on November 03, 2023 in Wellington, New Zealand. Special votes cast overseas and by post were certified on Friday, finally announcing the results of New Zealand's general election. Labor suffered a crushing defeat by Christopher Luxon's National Party, receiving the largest number of votes. However, the National Party will need the support of both ACT and NZ First to form the next coalition government. (Photo by Hagen Hopkins/Getty Images)
Hagen Hopkins | Getty Images News | Getty Images
Luxon said there was no doubt that the past three years had been a “very difficult period” for the country, but he said inflation remained. By 2.2% in OctoberIt was under control and interest rates were falling. The country's central bank has The bank indicated that further easing will come at its next meeting on February 19.
“We have business confidence at a 10-year high. We have consumer confidence at a three-year high. We have Farmer confidence is highest since 2017 “So we know that we have the conditions where people believe there is a better future,” he added.
“We now have to transform and grow, and that's where we have these strong international trade links, but also encouraging inward investment into New Zealand as well.”
When asked how he felt about Donald Trump's return to power in the United States, and the possibility of tariffs on exports to the United States as the President-elect has widely indicated (with a potential global tariff of 10% or 20% on all goods imported into the United States) he states United), Luxon said he was in a “wait and see” mode.
We will work well with any administration the Americans choose, and they have
He chose Donald Trump and the Republican administration. I have every confidence that we will work with them very constructively. “We will have to wait and see what the tariff policy is in terms of how it will actually be implemented, or what will be implemented.”
