September 26, 2024 • 5 mins
The Trade Minister has revealed how he managed to get the trade agreement with the United Arab Emirates over the line so quickly.
Todd McClay and counterpart Minister Al Zeyoudi signed the deal this morning to remove 98.5 percent of export duties on goods.
McClay says he'd been working negotiators hard for four months following an exchange earlier in the year.
"We made a commitment together then that if we were going to do this - let's try and do it as fast as it has been done."
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Now New Zealand has struck its fastest ever free trade
deal with the United Arab Emirates, as in the fastest
we've ever done, and it happens to be with the UAE.
The deal will lift duties on ninety eight point five
percent of New Zealand's exports immediately. That will rise to
nineteen nine percent within three years. And the deal was
all done within four months after the negotiations first started
in May. The Trade Minister is Todd mclahey. Todd, Hey, Heather,
(00:22):
Hell are you Jim Welth? How did you manage to
do it this quickly?
Speaker 2 (00:25):
Well, two things. I first met with the UA Trade
Minister in January of this year, end of January, and
I raised the prospect of a trade deal and said
that I'd go home and talk to my Prime Minister,
but if we're going to do one, let's be serious.
I was back just about a month later when he
hosted the Trade Minster meeting and I was one of
his vice chairs there and we made a commitment together
(00:46):
then that if we were going to do this, let's
try and do it the fastest that has been done,
and one of the most ambitious, and said, you know,
why don't we try and do everything entry into fourth
on day one. And we've been sweating and working out
negotiators hard for four months, including the UAE summer holiday,
and today we've announced it. And this is really good
(01:09):
news for New Zealand exporters. It's actually good for every
single sector in New Zealand. There are huge opportunities in
that market that's just growing for us.
Speaker 1 (01:17):
How much smaller is this FTA than an FTA with
the GCC.
Speaker 2 (01:23):
Well, our trade with the UAE we sell them at
one point one billion dollars worth of goods every year.
Majority of that, about seven hundred million is dairy. Our
trade with Saudi, which is the largest country there is
about the same size. So this is important to us
and it is significant, but it is complementary. The Trade
(01:44):
Minister who's down here, we finished the negotiation together last night.
Just a few little issues to go through. He was
asked in the press conference, you know, is this instead
of is an issue for the GCC deal. No, it's
complimentary and he said it believes ed would help. Now
the GCC has been you know, it's been sitting there
for seventeen years. Don't want to get hopes up, but
(02:04):
I have been meeting with others. There are Katar Prime
ministers at Trade Minister and also the Saudi Minister, and
there is interest in New Zealand. Again, but you know,
we've got a little way to go, so this is complementary.
It's a great, great start, it's worth celebrating, and there's
a foothold in the Middle East.
Speaker 1 (02:21):
Our first is part of our attraction, the possibility of
attracting their investment money in because it's been noted that
they have about three of the world's biggest sovereign wealth
funds there.
Speaker 2 (02:31):
Yeah, they do, and so investment is part of this agreement.
We also negotiate a bilateral investment agreement and all that
really does is give certainty to investors in both sides
levels of playing field. It doesn't include that ISDS, that
investor state dispute settlement mechanism that so many people were
worried about. We took that off the table and we
(02:52):
didn't do it. There is interest in New Zealand, but
their interests in working with us and could be an infrastructure.
They have a lot of interest in food security. They
want to be able to buy high quality, safe food
from New Zealand the food we produce so they can
continue to feed their population as it grows. So yes,
But there's also a really big part of the agreement
is around services and we have a number of Kiwi
(03:14):
companies up there doing well. Its look, it's just a
big growing market. Many more New Zealand companies are going
to find it easy to go up there and do business.
Speaker 1 (03:21):
Now do you think that they're going to put money
into us? Are they going to invest into us?
Speaker 2 (03:25):
Well, they bought a big business delegation down here with
them and they've been having business to business meetings and
I hear from the delegation of the businessmen on both sides,
men and women, is constructive and they see some opportunities.
So I think we should just see that as a
you a first sort of foothold they've come and have
a look. The one thing that does happen whenever you
sign a trade deal with another country, as trade grows
(03:48):
and investment grows, and it happens without a government being involved.
But we're pretty keen to see if there are ways
they can invest in our economy that is good for
all New Zealanders. And you know they have said they
want to come a look at that. So there are
certain going to be some opportunities. We'll have a look
and test out where they should be and make sure
they are good for New Zealand if we bring that
investment in.
Speaker 1 (04:06):
Todd isn't true that they actually wanted to strike an
FTA with US as far back as poor I think
it was November twenty twenty one, I read, But we
played hard to get.
Speaker 2 (04:17):
So in two thousand and eight there was all but
an agreement on the table, but then the GCC said
to them, we would prefer to do a region wide one,
so the UEA stepped back. I do think that. Look,
I understand a few years ago, before he came to government,
they showed renewed interest, but it didn't get off the ground.
There's probably a range of reasons for that. But actually,
(04:38):
you know, when I became Trade Minister, I said to
Christopher Luxeen, you know that I think there's a big
opportunity there we could do something. He said, your job
to get out on the world stage and hustle for
New Zealand exporters. And you know we've been able to
do this and it is it's actually less than one
hundred working days a touch off caution. I don't think
the next ones will be doing will be as straightforward
(04:59):
as us, but we will just work hard to make
sure we can deliver quality and we're not leaving anything. Whatever,
anything we can get the scored from news inalers, we're
going to be out there doing.
Speaker 1 (05:06):
That brilliant stuff. Hey, Todd, thank you, really appreciate your time.
That's Todd McLay, the Trade Minister.
Speaker 2 (05:11):
For more from Hither Dupless Yellen Drive, listen live to
news Talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio
Now New Zealand has struck its fastest ever free trade
deal with the United Arab Emirates, as in the fastest
we've ever done, and it happens to be with the UAE.
The deal will lift duties on ninety eight point five
percent of New Zealand's exports immediately. That will rise to
nineteen nine percent within three years. And the deal was
all done within four months after the negotiations first started
in May. The Trade Minister is Todd mclahey. Todd, Hey, Heather,
(00:22):
Hell are you Jim Welth? How did you manage to
do it this quickly?
Speaker 2 (00:25):
Well, two things. I first met with the UA Trade
Minister in January of this year, end of January, and
I raised the prospect of a trade deal and said
that I'd go home and talk to my Prime Minister,
but if we're going to do one, let's be serious.
I was back just about a month later when he
hosted the Trade Minster meeting and I was one of
his vice chairs there and we made a commitment together
(00:46):
then that if we were going to do this, let's
try and do it the fastest that has been done,
and one of the most ambitious, and said, you know,
why don't we try and do everything entry into fourth
on day one. And we've been sweating and working out
negotiators hard for four months, including the UAE summer holiday,
and today we've announced it. And this is really good
(01:09):
news for New Zealand exporters. It's actually good for every
single sector in New Zealand. There are huge opportunities in
that market that's just growing for us.
Speaker 1 (01:17):
How much smaller is this FTA than an FTA with
the GCC.
Speaker 2 (01:23):
Well, our trade with the UAE we sell them at
one point one billion dollars worth of goods every year.
Majority of that, about seven hundred million is dairy. Our
trade with Saudi, which is the largest country there is
about the same size. So this is important to us
and it is significant, but it is complementary. The Trade
(01:44):
Minister who's down here, we finished the negotiation together last night.
Just a few little issues to go through. He was
asked in the press conference, you know, is this instead
of is an issue for the GCC deal. No, it's
complimentary and he said it believes ed would help. Now
the GCC has been you know, it's been sitting there
for seventeen years. Don't want to get hopes up, but
(02:04):
I have been meeting with others. There are Katar Prime
ministers at Trade Minister and also the Saudi Minister, and
there is interest in New Zealand. Again, but you know,
we've got a little way to go, so this is complementary.
It's a great, great start, it's worth celebrating, and there's
a foothold in the Middle East.
Speaker 1 (02:21):
Our first is part of our attraction, the possibility of
attracting their investment money in because it's been noted that
they have about three of the world's biggest sovereign wealth
funds there.
Speaker 2 (02:31):
Yeah, they do, and so investment is part of this agreement.
We also negotiate a bilateral investment agreement and all that
really does is give certainty to investors in both sides
levels of playing field. It doesn't include that ISDS, that
investor state dispute settlement mechanism that so many people were
worried about. We took that off the table and we
(02:52):
didn't do it. There is interest in New Zealand, but
their interests in working with us and could be an infrastructure.
They have a lot of interest in food security. They
want to be able to buy high quality, safe food
from New Zealand the food we produce so they can
continue to feed their population as it grows. So yes,
But there's also a really big part of the agreement
is around services and we have a number of Kiwi
(03:14):
companies up there doing well. Its look, it's just a
big growing market. Many more New Zealand companies are going
to find it easy to go up there and do business.
Speaker 1 (03:21):
Now do you think that they're going to put money
into us? Are they going to invest into us?
Speaker 2 (03:25):
Well, they bought a big business delegation down here with
them and they've been having business to business meetings and
I hear from the delegation of the businessmen on both sides,
men and women, is constructive and they see some opportunities.
So I think we should just see that as a
you a first sort of foothold they've come and have
a look. The one thing that does happen whenever you
sign a trade deal with another country, as trade grows
(03:48):
and investment grows, and it happens without a government being involved.
But we're pretty keen to see if there are ways
they can invest in our economy that is good for
all New Zealanders. And you know they have said they
want to come a look at that. So there are
certain going to be some opportunities. We'll have a look
and test out where they should be and make sure
they are good for New Zealand if we bring that
investment in.
Speaker 1 (04:06):
Todd isn't true that they actually wanted to strike an
FTA with US as far back as poor I think
it was November twenty twenty one, I read, But we
played hard to get.
Speaker 2 (04:17):
So in two thousand and eight there was all but
an agreement on the table, but then the GCC said
to them, we would prefer to do a region wide one,
so the UEA stepped back. I do think that. Look,
I understand a few years ago, before he came to government,
they showed renewed interest, but it didn't get off the ground.
There's probably a range of reasons for that. But actually,
(04:38):
you know, when I became Trade Minister, I said to
Christopher Luxeen, you know that I think there's a big
opportunity there we could do something. He said, your job
to get out on the world stage and hustle for
New Zealand exporters. And you know we've been able to
do this and it is it's actually less than one
hundred working days a touch off caution. I don't think
the next ones will be doing will be as straightforward
(04:59):
as us, but we will just work hard to make
sure we can deliver quality and we're not leaving anything. Whatever,
anything we can get the scored from news inalers, we're
going to be out there doing.
Speaker 1 (05:06):
That brilliant stuff. Hey, Todd, thank you, really appreciate your time.
That's Todd McLay, the Trade Minister.
Speaker 2 (05:11):
For more from Hither Dupless Yellen Drive, listen live to
news Talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Special Summer Offer: Exclusively on Apple Podcasts, try our Dateline Premium subscription completely free for one month! With Dateline Premium, you get every episode ad-free plus exclusive bonus content.