Early Bird I Wednesday April 9th 2025

Prime Minister warns farm exports at risk in global trade war, Associate Ag Minister dodges questions on ETS forestry conflict, and sheep neglect leads to lifetime animal ban for Manawatū farmer.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

 

Prime Minister warns farm exports at risk in global trade war

Prime Minister Christopher Luxon has delivered his strongest rebuke yet of US President Donald Trump's tariffs, warning the shift away from rules-based trade threatens New Zealand's export-dependent rural economy.

Speaking to reporters before yesterday's caucus meeting, Luxon condemned the potential fallout from what he called a profound shift in the global economic landscape. The tariff announcements this week triggered market losses comparable to the global financial crisis, with Trump doubling down by threatening China with an additional 50 percent tariff if it doesn't withdraw countermeasures.

Luxon emphasised his government will be the biggest advocates for free trade on the world stage, noting that a trade war serves nobody's interests. The Prime Minister warned such conflicts would slow global growth, hurt jobs and reduce household income. Finance Minister Nicola Willis added that global inflation could rise by as much as 0.5 percent in response to the tariffs.

While New Zealand exporters have been hit modestly by direct tariffs, Willis highlighted that Asian markets have been significantly impacted, which will inevitably affect demand for New Zealand agricultural exports. 

Luxon offered reassurance to rural communities that New Zealand remains well positioned with competitive farmers and exporters, along with a network of trade deals. He stressed the country's strong history of advocating for an open, rules-based trading system and pledged to work with like-minded countries to promote free trade.

 

Associate Ag Minister dodges questions on ETS forestry conflict

Rural Communities and Associate Agriculture Minister Mark Patterson is refusing to answer questions about a forestry-related conflict of interest that might have affected his participation in emissions trading scheme decisions.

The Cabinet Office recently updated its conflicts register showing Patterson has a potential conflict between government decisions on ETS pricing and settings and his own pecuniary interest. While he's now excluded from receiving papers or participating in relevant ETS decisions as of August 14 last year, Patterson participated in at least one market-sensitive ETS decision in late May and put his name to a press release on removing agriculture from the emissions scheme.

When questioned whether this conflict existed during his earlier involvement in ETS decisions, Patterson's office declined to provide specifics. A spokesperson said details about conflicts disclosed to the Cabinet Office aren't generally released to maintain confidentiality of Cabinet proceedings and protect personal privacy, claiming this follows the approach of previous administrations.

The exact nature of Patterson's pecuniary interest remains unclear, though the New Zealand First MP is listed as director of Ngapara Farms Limited, described in the MPs' register as a sheep and beef farming and forestry company. Companies Office records show he's held this directorship since 2005, with ETS settings known to significantly impact forestry profitability through carbon sequestration credits.

Labour's climate change spokesperson Deborah Russell has called for Prime Minister Christopher Luxon to intervene and be transparent about addressing the potential conflict.

This controversy follows recent revelations that Act Party MP and fellow Associate Agri