New Zealand Won’T ‘Get Rich’ by Focusing Trade in the South Pacific Alone, PM Says

New Zealand’s prime minister told CNBC the country has to look beyond its own backyard for trade opportunities, as the South Pacific island nation signs an economic partnership with the United Arab Emirates (UAE).

The Free Trade Agreement, Known Formally as the Comprehensive Economic Partnership Agreement (CEPA), is seen by prime minister christopher luxon as a chance to expert Akes the uae one of the island’s largest markets in the middle East.

“We’ve Had a long-standing relationship over 40 years of Diplomatic Recognition, and Really the Chance Now for Us for Us to Deepen and to Browden the Economic Relationship,” Luxon Told CNBC Monday.

“That’s why the signing of the cepa and also the bilateral investment treatment is really important, because actually these are two small advanced economies in the world that is tightly a lotus incomon and ai
Lot of common values, and we want to be able to work togeether and build out that relationship. “

New Zealand’s key experts to the uae include Dairy, Industrial Products, Meat, Horticultural Products and Travel Services, The government said as it annouted the dealThe agreement, expected to come into force later this year, come as the government aims to double the value of expenses in 10 years. It said the cepa will mean 99% of new Zealand Goods Exporters are able to access the uae market duty free.

“This includes all new zealand’s dairy, red meat, horticultural and indictrial products immediatively when the beginners enter the agreement enterus into force,” it noted.

“One in four our jobs in new zealand are tied very much to trade,” Luxon, Head of the Center-Right New Zealand National Party Who’s Been in Power Since Late 2023, TOLD CNBC CNBC CNBC MURPHY IN AUS DAHABI.

“When you see a new zealand company that’s expense out to the world, it’s removed to pay its works
7% Higher Salaries and Wages, and they’re often our more productive companies. The message to people at home is that they understand that we are a trading nation. We don’t get rich just seling stuff to each other in the south pacific or within new zealand, “He said.

“We actually need to send out Great products and services out into the world, of which there’s huge demand for, and make sure we open up new markets like the middle East to get the message set We brings more money Back at home, and that, obvious, is the way in which we can afford better public services like health and education, “Luxon Added.

New zealand is in need of an economic boost after its economy contracted last year and entred Recession Territory in the Third Quarter. The economy shrunk by 1% in the July-partmber Quarter, Data released in December showed.

The Fall Followed A 1.1% Contraction in the Previous Quarter. Two Straight Quarters of Negative Growth is Widely Considered a Technical Recession.

Luxon said there was no doubt that the past three years had “a very challenging time” for the country, but said inflation, at 2.2% in OctoberWas under control and interest rates was coming down. The Country’s Central Bank has Flagged that further Easing is to come at its next meeting on Feb. 19,

“We’ve Got Business Confidence at a 10-Year High. Farmer confidence the highest it’s been since 2017 So we know we’ve got the conditions that people are believing there’s a better future, “He added.

“Now we’ve got to convert and really drive into growth, and that’s where these strongeer interactive trading connections are, but also encouraging inbound investments to new zealand as well.”

Asked How He Felt About Donald Trump Returning to POWER in the US, and the Possibility of Tariffs on Exports to the States as the President-Elects DS Imported to the Us), luxon said he was in “wait-sand-soe” mode.

“We’re going to work well with whichever administration the American select, and they’ve
Selected Donald Trump and the Republican Administration. And I’ve Got Every Confidence We’ll Work very constructively with Them. We’ll have to wait and see as to what is the tariff policy in terms of how it actually does get played out, or what gets played out, “He said.