Charles Finny: Former trade negotiator on the new free trade agreement with the Gulf Cooperation Council

A free trade deal with the Middle East countries belonging to the Gulf Cooperation Council has come at the right time for exporters. 

The FTA's expected to provide a sizable boost to the annual $3 billion of two-way trade. 

If treated as one country, all six countries —including Saudi Arabia and the UAE— would be New Zealand's seventh-largest export destination by value. 

Former trade negotiator Charles Finny told Ryan Bridge the timing couldn't be better. 

He says the demand for exports into China is slowing down and there's uncertainty ahead of the US election. 

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Episode Transcript

Speaker 1 (00:00):
Great news for key exporters. This morning, we've signed an
FTA with the six nation Golf Cooperation Council, that's the saudiast, UAE, Q, eight, Bahrain,
Qatar and Aman. Together they will become our seventh largest
export destination by value. As a result of this exchange,
largely dairy and meat exports will benefit. Charles Finni is

(00:22):
a former New Zealand trade negotiator. He's with us this morning.
By the way, duty free access for ninety nine percent
of our exports over ten years. This when combined with
the recent deal we did with the UAE. We're going
to Charles Finny now, who is with us live. Charles,
Good morning, Good morning Ryan. Is this a good deal?

Speaker 2 (00:42):
Yeah, I think it's very good. Obviously we haven't seen
the full detail yet, but as you've just been saying,
ninety nine percent of our exports free of duty within
ten years and about fifty percent if you combine this
with the UAE deal it was pronounced recently, we will
be free within a year. So that's really good news.

(01:04):
I suspect, as you say, meat and dairy will be
the initial beneficiaries, but it'll be wider benefits and also
good news. I think cross services exporters too.

Speaker 1 (01:15):
You took some of our exporters they say, actually, Paris
are pretty low here, roughly five percent. Is it going
to be It's not going to be a big game
changer like a China FTA.

Speaker 2 (01:24):
Oh no, it's not. But I think it does increase
certainty and allow people to look again and in more
detail at this market. I think the timing couldn't be better.
We've got some slowing of the Chinese economy, some slight
reduction in export demand there, and we've got real uncertainty

(01:45):
being caused by the US presidential election. Whoever wins. It's
going to be more difficult I think for New Zealand
exporters going to that market, and there'll be some other
implications around the world. So you're having a market as
big as the GCC, I think, particularly for meat exporters

(02:05):
without duty, this is going to be really powerful.

Speaker 1 (02:08):
How much of the hold up over this, because obviously
McLay has been instrumental in getting this deal over the line.
How much of the hold up was to do with
that whole Saudi live meat export saga.

Speaker 2 (02:20):
Well, obviously that was a complication early on. It's fantastic,
that's behind us, and well done, top of the clay
for putting it behind us.

Speaker 1 (02:27):
Yeah, yeah, goodbye, and we won't miss you. You mentioned
the need to put our eggs into lots of different baskets.
Are we doing enough of that?

Speaker 2 (02:37):
I think in general yes, but there are some product
areas where we're still very heavily dependent on one market.
I think for a whole range of reasons, not just politics.
It's very wise to have a range of options available,
and this free trade agreement is just another new opportunity

(03:00):
we've done the UK and EU in recent times. Had
the UAE deal now GCC added to our existing network,
we're in a very powerful position and that we need
to have this flexibility available to us because of the
global uncertainty that is inevitable after the election in the US.

Speaker 1 (03:22):
Well that's that the do you worry FTAs are going
out of fashion, you know, as these protectionist policies come
in from more protectionists leaders, prime ministers and presidents around
the world.

Speaker 2 (03:33):
I think the real threat is at a global level,
and so there is a willingness by some of the
major players to ignore global trade rules set in the WT.
But the good news is that we're still seeing a
good number of free trade agreements are being negotiated, and

(03:53):
I think that whoever wins in November and States is
going to cause uncertainty which will increase interest in agreements
such as CPTPP, and I think a lot of countries
will look at a deal we're just done with GCC
and be encouraged to negotiate also with the dcccers. Clearly

(04:19):
they are able to negotiate higher quality agreements than people thought,
particularly around agriculture.

Speaker 1 (04:24):
Interesting take. Thank you very much for that, Charles Charles Funny,
former New Zealand trade negotiator, on the program.

Speaker 2 (04:30):
For more from earlier edition with Ryan Bridge. Listen live
to News Talks.

Speaker 1 (04:34):
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