1 00:00:00,000 --> 00:00:01,720 Speaker 1: What do we make of the Trump idea of terrorists 2 00:00:01,720 --> 00:00:03,680 Speaker 1: on movies he floated in a while back. Of course, 3 00:00:03,720 --> 00:00:05,680 Speaker 1: it came to nothing until yesterday when he decided one 4 00:00:05,760 --> 00:00:08,000 Speaker 1: hundred percent was a good number. Tod mcclay's the trade 5 00:00:08,039 --> 00:00:10,760 Speaker 1: Minister's back with us, Todd morning. Now, this must make 6 00:00:10,800 --> 00:00:13,480 Speaker 1: your life hell, mustn't it? Given this is just all 7 00:00:13,520 --> 00:00:15,760 Speaker 1: of these things are constantly moving targets. 8 00:00:16,160 --> 00:00:19,439 Speaker 2: Yeah, it's the uncertainty that's most challenging, not only for 9 00:00:19,480 --> 00:00:21,800 Speaker 2: New Zealand exporters, but I was in Malaysia last week 10 00:00:21,800 --> 00:00:23,760 Speaker 2: with a lot of other trade ministers. They are all 11 00:00:24,160 --> 00:00:27,520 Speaker 2: dealing with exactly the same thing. You know, a rolling 12 00:00:27,560 --> 00:00:30,600 Speaker 2: mall of announcements, some of which actually have substance with 13 00:00:30,840 --> 00:00:33,800 Speaker 2: behind them. We've seen an announcement of a soft wood 14 00:00:34,240 --> 00:00:36,479 Speaker 2: timber and so on into the US. You just hit 15 00:00:36,520 --> 00:00:39,640 Speaker 2: with for New Zealand, a ten percent tariff for Canada 16 00:00:39,680 --> 00:00:42,040 Speaker 2: where they get most of it from to build their houses. 17 00:00:42,360 --> 00:00:45,960 Speaker 2: Fifty seven percent, so very high. But ultimately we also 18 00:00:46,120 --> 00:00:48,960 Speaker 2: see these truth social announcements which aren't really announcements, and 19 00:00:49,000 --> 00:00:52,959 Speaker 2: it's creating great uncertainty. Hollywood will not know what's going on. 20 00:00:53,080 --> 00:00:54,800 Speaker 2: But you know, our film industry to a right to 21 00:00:54,800 --> 00:00:55,560 Speaker 2: be concerned. 22 00:00:56,000 --> 00:00:59,040 Speaker 1: Does he have a point? This is Trump and this 23 00:00:59,200 --> 00:01:02,560 Speaker 1: whole subsidy thing is an artificial market and it is 24 00:01:02,600 --> 00:01:05,080 Speaker 1: a race to the bottom. And therefore, if you take 25 00:01:05,160 --> 00:01:07,440 Speaker 1: his view of the world, he's right, isn't. 26 00:01:07,280 --> 00:01:11,520 Speaker 2: He Well, well, I mean American States themselves do it, 27 00:01:11,600 --> 00:01:13,679 Speaker 2: and it's a very competitive industry. But if you think 28 00:01:13,680 --> 00:01:15,600 Speaker 2: about how a film is made, you know, in some 29 00:01:15,640 --> 00:01:18,000 Speaker 2: countries the whole film will be made there. But if 30 00:01:18,000 --> 00:01:20,240 Speaker 2: you're doing something and I don't know Auckland, a film 31 00:01:20,280 --> 00:01:23,040 Speaker 2: that's got views of Auckland and a door Paris with 32 00:01:23,120 --> 00:01:25,399 Speaker 2: the Eiffel Tower, you don't build a new one in 33 00:01:25,440 --> 00:01:27,680 Speaker 2: a studio in Hollywood. You go out and do some 34 00:01:27,720 --> 00:01:29,760 Speaker 2: of the filming there and you come back. The second 35 00:01:29,840 --> 00:01:31,839 Speaker 2: thing that I think is being missed in the wider 36 00:01:31,880 --> 00:01:35,319 Speaker 2: discussion about these tariffs is the US makes more money 37 00:01:35,360 --> 00:01:38,559 Speaker 2: from the world selling films to them then the rest 38 00:01:38,560 --> 00:01:41,560 Speaker 2: of US get from helping them make better quality films. 39 00:01:41,840 --> 00:01:44,119 Speaker 2: And so ultimately, this is the first time the presents 40 00:01:44,120 --> 00:01:47,480 Speaker 2: announced anything in services. Every other tariff has been on 41 00:01:47,520 --> 00:01:49,840 Speaker 2: good to tangible, good to meet the dairy, the stuff 42 00:01:49,880 --> 00:01:52,960 Speaker 2: like that, right, and it's not clear how this will work. 43 00:01:53,640 --> 00:01:56,960 Speaker 1: Yeah, how would you kell? I mean, if you were 44 00:01:57,000 --> 00:01:59,520 Speaker 1: his advisor and a bit of it was made in 45 00:01:59,520 --> 00:02:01,400 Speaker 1: New Zealand, a bit of it on Ireland and some 46 00:02:01,480 --> 00:02:03,680 Speaker 1: of it in America, how would you slice that up? 47 00:02:04,160 --> 00:02:06,559 Speaker 2: Well, that's the bit if you think about the first 48 00:02:06,640 --> 00:02:09,560 Speaker 2: announcement he made around you know, the very first tariffs 49 00:02:09,600 --> 00:02:12,680 Speaker 2: for the whole world. It was based upon he said, 50 00:02:12,840 --> 00:02:14,800 Speaker 2: different tariff rates, and it wasn't. They just had to 51 00:02:14,800 --> 00:02:16,840 Speaker 2: come up with a formula. When he put to US 52 00:02:16,880 --> 00:02:19,280 Speaker 2: from ten percent to fifteen percent, it was as arbitrary 53 00:02:19,280 --> 00:02:21,800 Speaker 2: as every country in the world that had a trade 54 00:02:21,840 --> 00:02:26,240 Speaker 2: surplus last year against the US is fifteen percent or more. 55 00:02:26,320 --> 00:02:28,320 Speaker 2: And so you know, my advice, if I was an 56 00:02:28,320 --> 00:02:30,600 Speaker 2: advisor to the president, is a better way to shore 57 00:02:30,680 --> 00:02:33,640 Speaker 2: up the US economy and to drive investment in growth. 58 00:02:33,880 --> 00:02:36,520 Speaker 2: But he did a campaign on tariffs and he is 59 00:02:36,600 --> 00:02:38,720 Speaker 2: doing what he said he was going to do. From 60 00:02:38,800 --> 00:02:40,520 Speaker 2: New Zealand point of view. For the film industry as 61 00:02:40,520 --> 00:02:44,040 Speaker 2: an example, though very competitive, have a very very high reputation. 62 00:02:44,200 --> 00:02:47,120 Speaker 2: I've got a call later today with a number of 63 00:02:47,760 --> 00:02:52,280 Speaker 2: producers and filmmakers and actors, predominantly New Zealanders, but are 64 00:02:52,360 --> 00:02:54,520 Speaker 2: very involved in Hollywood to see what they think, what 65 00:02:54,600 --> 00:02:57,280 Speaker 2: the studios are saying. But in the meantime they're telling 66 00:02:57,320 --> 00:02:58,840 Speaker 2: me films are still going to be made here out 67 00:02:58,840 --> 00:03:02,560 Speaker 2: of the US, respective of what happens there. And about 68 00:03:02,600 --> 00:03:04,760 Speaker 2: two thirds of all of the movie industry and filming 69 00:03:04,800 --> 00:03:06,680 Speaker 2: as in New Zealand comes from the rest of the world, 70 00:03:06,680 --> 00:03:09,160 Speaker 2: not the US, so look that resilient. They'll still do well. 71 00:03:09,200 --> 00:03:11,440 Speaker 2: We're just going to work out what this means and 72 00:03:11,520 --> 00:03:14,440 Speaker 2: look for ways that are non financial to help our 73 00:03:14,480 --> 00:03:16,440 Speaker 2: film set there because it is important to New Zealand. 74 00:03:16,520 --> 00:03:18,639 Speaker 1: Why I've got your India FTA. 75 00:03:18,800 --> 00:03:22,160 Speaker 2: Any movement, Yes, there is a movement there. We're making 76 00:03:22,280 --> 00:03:25,160 Speaker 2: very very good progress, although it's challenging in the areas. 77 00:03:25,320 --> 00:03:27,640 Speaker 2: We just had our third formal round in New Zealand 78 00:03:28,160 --> 00:03:31,639 Speaker 2: two weeks ago. I would say maybe sixty percent of 79 00:03:31,720 --> 00:03:35,320 Speaker 2: the agreement is done and we've finalized it, but of 80 00:03:35,360 --> 00:03:38,000 Speaker 2: course the hard stuff about you know, the goods we 81 00:03:38,040 --> 00:03:40,680 Speaker 2: want to sell them and vice versa comes towards the end. 82 00:03:40,840 --> 00:03:43,640 Speaker 2: So we're making really good progress. In part that's because 83 00:03:43,880 --> 00:03:45,440 Speaker 2: the Prime Minister and I have put a lot of 84 00:03:45,480 --> 00:03:49,240 Speaker 2: effort into building that relationship. But you know, consequently, because 85 00:03:49,240 --> 00:03:51,080 Speaker 2: of what America is doing, other parts of the world 86 00:03:51,120 --> 00:03:53,520 Speaker 2: are keen to do deals and give certainty. So, you know, 87 00:03:53,640 --> 00:03:56,720 Speaker 2: we said we would get it done before the election 88 00:03:56,800 --> 00:03:58,520 Speaker 2: this term of parliament, we're going to do it. 89 00:03:58,560 --> 00:04:01,280 Speaker 1: Good stop, Nice to catch up Tom's Who's the Tribe Minister. 90 00:04:01,840 --> 00:04:04,760 Speaker 2: For more from the mic Asking Breakfast, listen live to 91 00:04:04,840 --> 00:04:07,920 Speaker 2: News Talks it B from six am weekdays, or follow 92 00:04:07,960 --> 00:04:09,520 Speaker 2: the podcast on iHeartRadio.