October 6, 2025 • 7 mins
The Minister of Agriculture and Trade discusses the latest developments in a potential trade deal with India. Plus, how will US President Donald Trump’s forestry tariffs affect New Zealand’s forestry sector?
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Episode Transcript
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Speaker 1 (00:00):
Yes, it is a time to go ministerial on things
Minister of Egg and Trade, amongst other things. At Todd McLay,
good afternoon.
Speaker 2 (00:08):
Todd hamous good afternoon. Can I say you have the
best music in the country and I'm either showing my
age or a misspent youth, but I reckon that's only
half the reason people tun tune in.
Speaker 1 (00:20):
Yeah, well, I don't know whether it's me or the
other Mackay Jamie who need to claim responsibility. I think
often Michelle who does such a good job of being
playing DJ on the show. But yeah, it hard to
be to the old bit of the old crowded house. Okay,
India trade deal, how are we looking there?
Speaker 2 (00:36):
Yeah, look, there's a lot of momentum and pace going on.
But fair to say, trade agreements always very difficult to negotiate,
particularly for New Zealand. You know, we have the world's
best farmers producing the highest quality, safest food and I've
got to say that producers elsewhere are envious and governments
protect But we have now had three formal rounds of
(00:57):
negotiation with India. There's another one coming up India very
very shortly, and both sides have said we want to
get this done and get it done quickly. And we
remain committed to delivering a trade agreement that you know
that'll move the economy forward with India during this term
of parliament.
Speaker 1 (01:15):
Okay, so three rounds down? Yet how confident I told
that you've got the fourth round, knockout blow lined up.
Speaker 2 (01:23):
When when we launched earlier in the year, and Amy's
going to remember, everyone said it wasn't possible, it would
be years away, India would never do it. When we
when I flew out to India and we sat down
with my counterpart Pskoyal, we both agreed would only launch
if we're committed to getting it done. So you know,
that's the first time India have said that. The second
(01:43):
thing is when the US put that fifty percent tariff
on India, Prime Minister Modi and Pskoyal both said two things.
Number one, Indian should buy more from India. Number two,
they are accelerating their free trade negotiations with the European Union,
with Norway and with New Zealand. And so it's a
first time in my history, my seventeen years in this parliament,
(02:04):
I've heard the Indian government say we're going to deal
with New Zealand. But I want to caution it's always difficult,
it's always hard, and the tough stuff we have to
keep talking about. We're going to make sure we get
good access for New Zealand farmers in that market as
we have in China and European, New New UK and
many other countries, to give them choice. We're going to
keep discussing and negotiating until I think I can come
(02:26):
back to Prime Minister luxem and New Zealand farmers and
say this is good enough to do.
Speaker 1 (02:31):
Toddy, were you an opening batter or left arm spinner,
because the cricketers have been the only guys from New
Zealand have really sort of seemed to have had any
cut through in India in the past, but you seem
to be seen to be making headway.
Speaker 2 (02:43):
Maybe they didn't help me. I'm out there trying to
get a negotiation launched and bloody New Zealand was beating
the Indians right, So I said the message. They calmed
down a bit for the natural God. No, look, it's
about it's about relationship. I've taken a very different approach
to a trade and agriculture this time as Minister of
the When I was Minister of Trade last time. You
think about businesses, right, you don't enter into a long
(03:05):
term business relationship with somebody to rip them off or
to get as much as you can and then go
somewhere else. You want to build a long term business
relationship and it's based on trust and understanding and working
things out. And so that's the approach that I've taken
with the UAE when we've got that deal last year
in record time. But GCC, including Saudi, we've got one,
you know, it was dead over eighteen years. And now
(03:26):
with India and it's just mutual respect that they have
sensitive issues as we have. We've agreed to rather than
just leave on negotiators bang heads, we will try and
find solutions that you know, can help each each side.
And so far the negotiators are tough and they're hard,
but they are reaching agreement in area and so progress
is being made.
Speaker 1 (03:46):
Right. Okay, Now forestry tariffs, what's the situation there? Yeah?
Speaker 2 (03:51):
With the US, Well, we faced a no tariff into
the US, you know, across the board and the end
of face phase ten percent. When President Trump came in,
it was moved to fifteen percent solely because we have
a trade surplus. We sell them a small amount more
than we buy. He's had a special investigation into softwood
going to the US market and he's come out with
(04:11):
tariffsoft for New Zealand ten percent in itself. That is
harmful and it's unwarranted and it's not welcome. But what
we do know is they need the wood from New
Zealand house where to build their houses. If I compare
in New Zealand exports to say Canada, the same wood
product face almost fifty percent tariff. So we're not worse
off there. But you know, we have seen from the
(04:32):
US the President Trump campaigned on tariff, and he has
a tariff agenda, and we are working with the wood
industry of a period of time and many others, so
I better understand, you know, the effectors will have on
them and to assist them. Most of them are telling
me they will be able to keep trading that market.
Just as our beef is still going up there, the
areus going up there and so on. What I'm most
(04:53):
concerned about. And I met with my US counterpart a
week or so ago in Malaysia. I think it's my
four in person meeting with them. I said What is
concerning me the most, apart from the tariffs that are
unwarranted and are harmful I was pushing costs up for
US consumers, is the uncertain nature and the change, and
that is actually what's having the biggest impact upon their exporters.
(05:14):
And our officials are meeting monthsly to try and work
through that so we can get a bit more certainty.
But you know, we are in a raging now where
the US has said they're going to apply tariffs. Our
trade is not necessarily going down, but it is very uncertain.
It's getting more and more challenging.
Speaker 1 (05:31):
Yeah, okay, well let's hope and get a bit more
surety around those issues with the tariffs into the US. Look,
tod we're not against a bit of self praise. The
mood of the boardroom had you at fourth. You're obviously
working very hard. But this leads to another thing, which
is Mental Health Awareness Week. What do you do to
keep your top two inches in check as busy as
(05:53):
you are.
Speaker 2 (05:55):
That's so interesting. I don't know. I haven't thought about it.
I just get a bit and going to the job
every day. What keeps driving me forward, it is the
hard working men and women in rural New Zealand who
support the economy and correct job and how much they
were banged around over the last six years of the
Labor government. I'm not going to make this political, but
when we came in, rural confidence was at record low levels.
(06:17):
And that's just ridiculous because New Zealand farmers contributed so
much and always have four New Zealand to New Zealand economy.
And so what I've done with my three associates across agriculture,
our job is to be a champion. I talk about
the good things and where something is not working, final solutions,
don't blame and you know I've got to say that
with Matt Doocy also, who's our mental health's first mental
(06:38):
health Minister, I spent a lot of time talking to
him about how we need to engage with the sector
and experts there and everyday farmers and communities to work
out what more we should be doing. You don't find
the solutions sitting in Wellington talking to your officials. And
that's done a really, really good job. You'll have seen
where announced funding and new programs hit the budget this
year around rural health and mental health, saying we've worked
(06:59):
with a lot of people across the board to get
it right. But I've got to say that I am
very pleased that rural confidence levels are up. There are
still hard work to do, but there's confidence levels up
because I think not only a commodity prices is good
and we're getting the costs down through city bureaucracy. Farmers
are setting valued again.
Speaker 1 (07:19):
Fantastic and so they should. They are the backbone of
the country. That's our Minister of Egg Todd mcclad. They're
joining us here on the country
Yes, it is a time to go ministerial on things
Minister of Egg and Trade, amongst other things. At Todd McLay,
good afternoon.
Speaker 2 (00:08):
Todd hamous good afternoon. Can I say you have the
best music in the country and I'm either showing my
age or a misspent youth, but I reckon that's only
half the reason people tun tune in.
Speaker 1 (00:20):
Yeah, well, I don't know whether it's me or the
other Mackay Jamie who need to claim responsibility. I think
often Michelle who does such a good job of being
playing DJ on the show. But yeah, it hard to
be to the old bit of the old crowded house. Okay,
India trade deal, how are we looking there?
Speaker 2 (00:36):
Yeah, look, there's a lot of momentum and pace going on.
But fair to say, trade agreements always very difficult to negotiate,
particularly for New Zealand. You know, we have the world's
best farmers producing the highest quality, safest food and I've
got to say that producers elsewhere are envious and governments
protect But we have now had three formal rounds of
(00:57):
negotiation with India. There's another one coming up India very
very shortly, and both sides have said we want to
get this done and get it done quickly. And we
remain committed to delivering a trade agreement that you know
that'll move the economy forward with India during this term
of parliament.
Speaker 1 (01:15):
Okay, so three rounds down? Yet how confident I told
that you've got the fourth round, knockout blow lined up.
Speaker 2 (01:23):
When when we launched earlier in the year, and Amy's
going to remember, everyone said it wasn't possible, it would
be years away, India would never do it. When we
when I flew out to India and we sat down
with my counterpart Pskoyal, we both agreed would only launch
if we're committed to getting it done. So you know,
that's the first time India have said that. The second
(01:43):
thing is when the US put that fifty percent tariff
on India, Prime Minister Modi and Pskoyal both said two things.
Number one, Indian should buy more from India. Number two,
they are accelerating their free trade negotiations with the European Union,
with Norway and with New Zealand. And so it's a
first time in my history, my seventeen years in this parliament,
(02:04):
I've heard the Indian government say we're going to deal
with New Zealand. But I want to caution it's always difficult,
it's always hard, and the tough stuff we have to
keep talking about. We're going to make sure we get
good access for New Zealand farmers in that market as
we have in China and European, New New UK and
many other countries, to give them choice. We're going to
keep discussing and negotiating until I think I can come
(02:26):
back to Prime Minister luxem and New Zealand farmers and
say this is good enough to do.
Speaker 1 (02:31):
Toddy, were you an opening batter or left arm spinner,
because the cricketers have been the only guys from New
Zealand have really sort of seemed to have had any
cut through in India in the past, but you seem
to be seen to be making headway.
Speaker 2 (02:43):
Maybe they didn't help me. I'm out there trying to
get a negotiation launched and bloody New Zealand was beating
the Indians right, So I said the message. They calmed
down a bit for the natural God. No, look, it's
about it's about relationship. I've taken a very different approach
to a trade and agriculture this time as Minister of
the When I was Minister of Trade last time. You
think about businesses, right, you don't enter into a long
(03:05):
term business relationship with somebody to rip them off or
to get as much as you can and then go
somewhere else. You want to build a long term business
relationship and it's based on trust and understanding and working
things out. And so that's the approach that I've taken
with the UAE when we've got that deal last year
in record time. But GCC, including Saudi, we've got one,
you know, it was dead over eighteen years. And now
(03:26):
with India and it's just mutual respect that they have
sensitive issues as we have. We've agreed to rather than
just leave on negotiators bang heads, we will try and
find solutions that you know, can help each each side.
And so far the negotiators are tough and they're hard,
but they are reaching agreement in area and so progress
is being made.
Speaker 1 (03:46):
Right. Okay, Now forestry tariffs, what's the situation there? Yeah?
Speaker 2 (03:51):
With the US, Well, we faced a no tariff into
the US, you know, across the board and the end
of face phase ten percent. When President Trump came in,
it was moved to fifteen percent solely because we have
a trade surplus. We sell them a small amount more
than we buy. He's had a special investigation into softwood
going to the US market and he's come out with
(04:11):
tariffsoft for New Zealand ten percent in itself. That is
harmful and it's unwarranted and it's not welcome. But what
we do know is they need the wood from New
Zealand house where to build their houses. If I compare
in New Zealand exports to say Canada, the same wood
product face almost fifty percent tariff. So we're not worse
off there. But you know, we have seen from the
(04:32):
US the President Trump campaigned on tariff, and he has
a tariff agenda, and we are working with the wood
industry of a period of time and many others, so
I better understand, you know, the effectors will have on
them and to assist them. Most of them are telling
me they will be able to keep trading that market.
Just as our beef is still going up there, the
areus going up there and so on. What I'm most
(04:53):
concerned about. And I met with my US counterpart a
week or so ago in Malaysia. I think it's my
four in person meeting with them. I said What is
concerning me the most, apart from the tariffs that are
unwarranted and are harmful I was pushing costs up for
US consumers, is the uncertain nature and the change, and
that is actually what's having the biggest impact upon their exporters.
(05:14):
And our officials are meeting monthsly to try and work
through that so we can get a bit more certainty.
But you know, we are in a raging now where
the US has said they're going to apply tariffs. Our
trade is not necessarily going down, but it is very uncertain.
It's getting more and more challenging.
Speaker 1 (05:31):
Yeah, okay, well let's hope and get a bit more
surety around those issues with the tariffs into the US. Look,
tod we're not against a bit of self praise. The
mood of the boardroom had you at fourth. You're obviously
working very hard. But this leads to another thing, which
is Mental Health Awareness Week. What do you do to
keep your top two inches in check as busy as
(05:53):
you are.
Speaker 2 (05:55):
That's so interesting. I don't know. I haven't thought about it.
I just get a bit and going to the job
every day. What keeps driving me forward, it is the
hard working men and women in rural New Zealand who
support the economy and correct job and how much they
were banged around over the last six years of the
Labor government. I'm not going to make this political, but
when we came in, rural confidence was at record low levels.
(06:17):
And that's just ridiculous because New Zealand farmers contributed so
much and always have four New Zealand to New Zealand economy.
And so what I've done with my three associates across agriculture,
our job is to be a champion. I talk about
the good things and where something is not working, final solutions,
don't blame and you know I've got to say that
with Matt Doocy also, who's our mental health's first mental
(06:38):
health Minister, I spent a lot of time talking to
him about how we need to engage with the sector
and experts there and everyday farmers and communities to work
out what more we should be doing. You don't find
the solutions sitting in Wellington talking to your officials. And
that's done a really, really good job. You'll have seen
where announced funding and new programs hit the budget this
year around rural health and mental health, saying we've worked
(06:59):
with a lot of people across the board to get
it right. But I've got to say that I am
very pleased that rural confidence levels are up. There are
still hard work to do, but there's confidence levels up
because I think not only a commodity prices is good
and we're getting the costs down through city bureaucracy. Farmers
are setting valued again.
Speaker 1 (07:19):
Fantastic and so they should. They are the backbone of
the country. That's our Minister of Egg Todd mcclad. They're
joining us here on the country
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