US Presidency affecting NZ exports
International trade could be a source of tension with the election of Donald Trump as US President, says BusinessNZ.
BusinessNZ Chief Executive Kirk Hope says New Zealand’s prosperity relies on open and free trading of our export products, and if the US takes a more closed approach to trade in future, New Zealand export returns could be affected.
“The US is New Zealand’s third largest export market.Trade with the US earns New Zealand over $5 billion a year in products including meat, dairy and wine, and over $2 billion a year in services. A reduction in this level of trade would make a difference to New Zealand’s growth prospects.
“International trade generally could become more uncertain, as statements made during the Presidential campaign indicated an intention for the US to impose large tariffs on imports into the US from China and Mexico. This raises the possibility of tariff retaliation and a more general increase in protectionism by other countries. The overall result could be a general decrease in international trade. This would not be in New Zealand’s interests, given that we are a highly trade-reliant economy.
“It is possible that statements made during the campaign may prove to have been merelyrhetoric, and the US will maintain its orthodox approach to international trade– that will be the hope of business in New Zealand.
“New Zealand business will continue its course of growing high quality innovative exports of goods and services and seeking trade opportunities in all parts of the world.”