Todd McClay: Trade Minister on the acceleration of New Zealand’s export boom

New Zealand’s export boom is accelerating.

New international trade figures show exports climbed to $29.2 billion in the December quarter - up $2.2 billion on a year earlier.

Two-way trade also jumped to just over $61 billion.

Trade Minister Todd McClay told Ryan Bridge dairy is performing strongly, with meat exports up a remarkable 21%.

He says growth has soared with countries we have free trade agreements with, like the EU, UK, and Australia.

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Episode Transcript

Speaker 1 (00:00):
So more of the good numbers on exports for December
quarter twenty nine billion dollars. That was up two point
two billion on last year. Dairy up ten, tourism up
nine point five, meet up twenty one point four. The
war and shipping disruption ahead wind of course. Todd McClay
Trade minister with us this morning. Minister, Good morning, right,
and hey, good morning. Any update on the Middle East

(00:20):
situation from you, by the way on our goods getting
the market, Yeah, we'll.

Speaker 2 (00:25):
Look there the information I received yesterday and a lot
of us are sort of working at space. The way
through the system still is that shipping lines are putting
in place their contingencies where they are moving goods that
are distance rather nations not through that part of the world.
So that means some delays for exporters, but the goods
will still get to market. The middlease itself remains closed.

(00:49):
In fact, yesterday we're out on the ground and Auckland
else we're talking directly and to exporters and they are,
you know, at this stage is not concerned. A number
of them have insurance in place there be an extended
period of time that they can't get good into those markets.
But at some stage not too different futures. Some of
the ports we think we'll be starting to open up,
however in the first week and they've seen overnight, and

(01:11):
it's sort of a very precarious situation.

Speaker 1 (01:13):
Yeah, I spoke not sir Nathan guy yesterday. He mentioned
that mb might need to get involved with changing a
few rigs around a country of destination rules have you?

Speaker 2 (01:23):
Are you across that all? So all of that stuff
can happen quite quickly when needed, no problem at all. So,
I mean the advice that will give you any export
is where they have particularly concerns for what they're doing
just to reach out. But actually is a very close
relationship between you know, MBM fact particularly and our exports.
We've given that export such an important part of our economy.

(01:44):
So whatever we need to do or do as quickly
as we can, very good.

Speaker 1 (01:47):
Did you see Trump's offer to help to let the
US Navy guide the ships through the Strait?

Speaker 2 (01:54):
I haven't seen that, so no, that's not across my
desk here right.

Speaker 1 (01:57):
The export numbers in general, the story can continues to
be well, a great one for New Zealand.

Speaker 2 (02:03):
Yeah, it's very very positive and we've been seeing in
upsource for a period of time. It's two things. It
is extra demand, a lot more demand for the high
quality products, particularly you know, food and fiber that we produce.
There's also, you know, we are more competitive markets with
the New Zealand dollar having been a little bit lower
for a period of time. But Ryan, I think a
couple of standouts you mentioned earlier. You know, Dare is up,

(02:25):
but meet at twenty one percent increase is quite phenomenal
the areas of the world that we're seeing increase or
growth in our exports countries we have free trade agreements.
So the EU was up more than twenty two percent
in that quarter, the UK thirteen percent, Australia of course
it's very very strong, as is China, and interestingly, the

(02:47):
US up almost eight percent even with those tariffs in place.
Seems use consumers want you know, New Zealand food and
they're willing to pay a bit more for it.

Speaker 1 (02:57):
As a trade minister, are you wanting Trump to just
like stop with the terraffs and stop with the walls please?

Speaker 2 (03:03):
Well, I think I like the war. I think i'd
like all wars to start. But that's a much longer
conversation so what we need is, you know, the uncertainty
to go away. New Zealand thinks tariffs are harmful. We
have very very low terrif rates here. I mean, if
you think about India, that's a very high teriff area.

(03:23):
Our wine face one hundred and fifty percent, sheep meet
thirty percent. By comparison, Indian goods into New Zealand are
around about two percent, so very very low. We still
get to trade when there are you know, high teriff rates,
albeit it is harder, but it's the certainty that allows
of a trade agreement, that allows our exporters to decide

(03:45):
to put effort into a market. So when there are
changes in tteriff rates or conditions or rules, it makes
it very very hard and uncertain. Our exporterers may not
want to be in there, or it's harder to make
those long term business relationships. So yes, we'd like the
tiff rates to go away. We don't think warranted against
New Zealand from the US. But what we need even
more is some certainty so that the you know, businesses

(04:06):
on both sides in the US and you can start
planning again.

Speaker 1 (04:09):
Hey, we spoke yesterday about the golf States and now
you've got friends counterparts there. Have you spoken to any
of them? Do you know whether they know? What are
they telling you?

Speaker 2 (04:18):
So I've been messaging as opposed to phoning out the
last day or so, you know, just to express our support,
to check in and see how they are, both from
the point of view, you know, professionally, but also in
a couple of those countries have grown quite strong friendships
with some of their trade ministers as we've worked away
at the trade deals over the last year or two. Look,
they are very, very concerned, but they have very solid

(04:40):
plans in place. I mean, I think the most interesting
thing is, at least you're seeing through the media, is
that their defense systems that they have and all of
those countries are unbelievably robust and they are protecting them.
But as I've said on your your other show earlier
in the week, you know, we strongly condemned the actions
of Iran and attacking friends and neighbors and civilians in

(05:02):
those areas, and the should stop.

Speaker 1 (05:05):
They went harder on in the first twenty four hours
the Gulf States, the US Saudis at least than they
did on Israel.

Speaker 2 (05:14):
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