Todd McClay: Trade Minister on the trade deals being negotiated with China and the visa-free travel deal

A big day for New Zealand business is on the cards as the Chinese Premier's trip continues. 

Li Qiang has met with the Prime Minister, confirming that China will expand its unilateral visa-free travel policy to New Zealanders 

Today, Chinese business representatives will be signing trade deals with local companies. 

Trade Minister Todd McClay told Mike Hosking that there's huge potential for this country as China's economy grows from strength-to-strength. 

He says the services agreements and co-operation deals around berries and baby formula that are under negotiation are worth billions of dollars. 

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Episode Transcript

Speaker 1 (00:00):
Look into what might come out of the visits of
this Chinese premier Lee Chiang, first visit since twenty seventeen.
Of course, he's in Auckland today to meet the China Council,
among others. Trade Minister is with the Todd mcclay's with
us with us.

Speaker 2 (00:11):
Good morning, make the morning.

Speaker 1 (00:12):
My understanding is he's traveling with a large trade delegation.
Is trade being done? Are we bullish about this or not?

Speaker 2 (00:19):
Yes, very much so you'll have seen yesterday we announced
our lord's the negotiation for our services upgrade of the FDA.
That's going to be really important New Zealand experts. We
want to go from currently a system that says there's
a list of things you can sell into China for services,
to what we call a negative list. You can sell
anything except where it's on a list with restriction. And

(00:42):
it's a really really positive step. And then there are
businesses traveling with the Chinese delegation today in Auckland with
New Zealand. Businesses will be signing cooperation and trade deals.

Speaker 1 (00:51):
What's all this worth and dollar terms? Do we know?

Speaker 2 (00:54):
Well, it's huge. You know, I've got thirty eight billion
dollars worth two way trade. Their economies growing by five
percent this year, that's four times in New Zealand economy.
You know, they're still really really really big potential into
that market. But I think between the services agreement we're
negotiating when that's landed, and the other cooperation agreements around

(01:15):
infant formula, Kiwi berries, and then also they've trade deal
billions of dollars of the answer.

Speaker 1 (01:20):
Are they bullish about their economy at all? Because being
I mean five percent, you're right, five percent of the
massive economy is a lot, but it's not what it was.
Are they bullish?

Speaker 2 (01:28):
Look? Look, I think I think they've seen this as
with many countries. There are some structural challenges coming out
out of COVID, but they're optimistic and probably a little
bit bullish. That's really good news for us. I was
up there a month or so ago, maybe a little
bit more. There's half a billion middle class Chinese consumers.
They're younger, they're wanting to buy the goods and services

(01:51):
we produce. They're very interested in where their goods and
services come from. What that story is, And I just
back the New Zealand's really really well placed, really, but
this has to be seen as a positive as it
by the Chinese premiere, and you know there is more
opportunity for us in that market.

Speaker 1 (02:08):
The Belton Road side of the equation. There are money
in here doing stuff for us. Are we keen on
this or not.

Speaker 2 (02:13):
It's not something that's really been discussed widely, and you
know a few the projects from many years ago have
been talked about for a long time. It's probably not
something we're progressing with as a government, the Belton Road initiative.
But aside from that, in our FTA, we're very open
to investment from any country of the world. We don't
say that we want it for one place rather than other.
It's good for New Zealand and it's going to grow

(02:34):
the economy. It's worth considering. But I wouldn't suggest to
the Belt and Roads we're going to be taking any
steps forward.

Speaker 1 (02:40):
Luckson's comments, we're interesting fifty to fifty in the bilateral
fifty we agree fifty. We don't how delicate is that
type grope?

Speaker 2 (02:47):
Well, it's very important. I mean we have things that
are important to us. Take their death penalty for instance.
You know we've always been opposed to that, no matter
whether it's in China or in the US, and we
raige it with people constructively and respectfully. And so it
is important that we raise issues you know that the
New Zealand cares about. We're allowed to do it publicly,

(03:07):
we should do it directly. And so but I would
I would categorize at Ascustes today as respectful and responsible
and actually warm in many parts with the relationship works well, all.

Speaker 1 (03:18):
Right, I appreciate it. Tom McLay, who's our Trade minister.
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