Todd McClay: Trade Minister discusses impact of ASEAN summitt on NZ-South East Asia trade relations

It's set to get easier for New Zealand businesses trading in South East Asia, as the Prime Minister's in Malaysia to finalise a regional deal.

Chris Luxon is in Kuala Lumpur for the ASEAN summit and will finalise a Comprehensive Strategic Partnership with the association.

ASEAN has 11 member countries such as Malaysia, Thailand, Singapore and Laos.

Trade Minister Todd McClay told Mike Hosking that it can be difficult for kiwi businesses to deal in South East Asia, with often complex and prohibitive rules.

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Episode Transcript

Speaker 1 (00:00):
It's a big week for the country on the trade front.

(00:01):
Of course the East Asia Summit followed by APEC and
South Korea. Trump and geare your headline X. So what
if anything tangible comes out of any of this or
all of this? Todd maccloy's the Trade Minister who was
on his way today and as well as are we
getting an upgrade on O SCN Has that been sorted
or do we have to work through something for that
to happen?

Speaker 2 (00:18):
So very close Trade Minister has met about a month
ago and agreed equivalent of language for the leaders and
then where to work through that allows an upgrade. Nothing
will happen quickly for New Zealand though. It's the ability
for to sort of see a bit more integration. We're
all simplifying so our businesses and getting out of those
countries a lot more easily. That's a really big push
for us.

Speaker 1 (00:38):
Is that a material thing where dollars flow?

Speaker 2 (00:42):
Yes, absolutely it will be. So if you think if
you're a New Zealand company and you want to go
and set up in an Asian country, you'll have different
rules in every single one, which is okay, but some
of them are quite prohibitive. So the idea that we
can have you know, a bit more freer movement of
those businesses, it's easier for them to set up, easier
for them. The trade will make it huge, huge difference.
I suppose the easiest way to look at it, Mike

(01:04):
is Hasia Pacific is a fast just growing region in
the world. We sit right there on their doorstep. They're
very open to us. So if we can get role simplified,
it'll be much easier for Kiwis to do better there?

Speaker 1 (01:14):
Are they more open given what's happened with America and
they're the people who make the running shoes and they're
the ones being hit with forty percent.

Speaker 2 (01:21):
Well, they've already for the last handfully has been quite
open to us. It's a very long agreement. You've seen
quite a few of their leaders either come down or
our prime minists has been up there. But yes, there
is a new sense of dynamism there. They want to
look more broadly than some of their large and more
traditional training partners in New Zealand along with Australia are
an easy pick for them.

Speaker 1 (01:40):
What about the FTI and career as they're going to
be movement there?

Speaker 2 (01:44):
Well, I've been having conversations with my colleague. They've just
had an election, so it's a new minister. We're talking
about that. It's we're at the stage we were talking
about levels of ambition. Both sides say, yes, it's time
to upgrade it. We want a really good upgrade. It's
a chance to modernize it because as it was some
time ago, I think it's fair to say, as a
result of their election and your ministers, that's going to

(02:05):
take a little bit longer. But I'm on my way today,
as he said, up to Corea. I'll be pushing that
along with conversations with both China and the Chinese minister
and the US minister about better rules for New Zealanders
and in the case of the US, more certainty as
to what might have what not happen with tariff right good.

Speaker 1 (02:22):
Just last week the EU that seemed all bullish.

Speaker 2 (02:25):
Is it, yeah, very very positive. Their commissioner came down here.
In fact, he was on the eraplane more than he
was in the country. Flew down here for US five
hundred companies, about two hundred from the EU came down.
Of course, this is to celebrate just over a year
of our free trade agreement. One point eight billion dollars
of extra exports for New Zealand goods exports up to

(02:47):
that market, and they're very keen to do more. He
and I have agreen will do agreed, we'll do another
summit up in Europe and it's just now about promoting
that agreement so that the trade can grow even more quickly.

Speaker 1 (02:57):
Good go, well, appreciate it. Tom McLay, who's the Trade
minister hitting off this morning, too Career.

Speaker 2 (03:02):
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