1 00:00:00,040 --> 00:00:03,240 Speaker 1: The Prime Minister is with us from Asian ahead of 2 00:00:03,520 --> 00:00:05,040 Speaker 1: APEX Crystal actions with us. 3 00:00:05,040 --> 00:00:07,280 Speaker 2: Morning, Good morning, Mike, Dad. Do I have a fun 4 00:00:07,360 --> 00:00:09,920 Speaker 2: fact for you? Last time you gave me grief about 5 00:00:09,960 --> 00:00:11,239 Speaker 2: doing the fun facts at the end? 6 00:00:11,440 --> 00:00:11,600 Speaker 3: Yes. 7 00:00:11,680 --> 00:00:13,920 Speaker 2: Do you know that we export in three days now 8 00:00:14,000 --> 00:00:15,760 Speaker 2: what we used to do in a year in nineteen 9 00:00:15,800 --> 00:00:16,640 Speaker 2: seventy five. 10 00:00:16,800 --> 00:00:19,640 Speaker 1: To the world to Southeast Asia? 11 00:00:19,720 --> 00:00:23,080 Speaker 2: Southeast Asia yep, where I am today and kal. So 12 00:00:23,120 --> 00:00:24,080 Speaker 2: that's pretty cool, isn't it. 13 00:00:24,160 --> 00:00:27,480 Speaker 1: So just just for the record, we export to Southeast 14 00:00:27,480 --> 00:00:31,040 Speaker 1: Asia now in three days what we used to export 15 00:00:31,080 --> 00:00:32,120 Speaker 1: in a whole year. 16 00:00:32,760 --> 00:00:34,080 Speaker 3: In nineteen seventy five. Yep. 17 00:00:34,320 --> 00:00:38,400 Speaker 1: That's that's that's an that's an impressive fact. Congratulations. How 18 00:00:38,520 --> 00:00:41,040 Speaker 1: was your How was your Monday? Is this really about 19 00:00:41,080 --> 00:00:44,640 Speaker 1: glad handing in relationships as opposed to specific deals? 20 00:00:45,360 --> 00:00:47,840 Speaker 2: No, Look, I mean Asian and Apek is about seventy 21 00:00:47,840 --> 00:00:50,200 Speaker 2: percent of our exports, sixty percent of the population, about 22 00:00:50,200 --> 00:00:53,120 Speaker 2: half the global economy. And so there's four things I'm 23 00:00:53,120 --> 00:00:54,760 Speaker 2: trying to do while I'm up here. One is to 24 00:00:55,320 --> 00:00:58,280 Speaker 2: get what's called a Conference of Strategic Partnership with Asian, 25 00:00:58,320 --> 00:01:00,680 Speaker 2: which is all the eleven countries and South East Asia. 26 00:01:01,080 --> 00:01:03,360 Speaker 2: That means we're only one of seven countries that have 27 00:01:03,440 --> 00:01:06,520 Speaker 2: that arrangement. It's the highest level sort of diplomatic relationship 28 00:01:06,520 --> 00:01:08,920 Speaker 2: you can have. And as a consequence, that means that 29 00:01:08,959 --> 00:01:11,760 Speaker 2: both countries in Southeast Asia have us a higher priority 30 00:01:11,760 --> 00:01:14,920 Speaker 2: to invest in and obviously make a bigger effort for 31 00:01:15,080 --> 00:01:17,080 Speaker 2: us to deal with our exports coming in and out 32 00:01:17,080 --> 00:01:18,160 Speaker 2: of those countries as well. 33 00:01:18,520 --> 00:01:20,559 Speaker 3: I've got a bit of work to do with Malaysia. 34 00:01:20,120 --> 00:01:23,600 Speaker 2: To do about investment back in New Zealand, particularly renewables 35 00:01:23,600 --> 00:01:27,160 Speaker 2: and hospitality. Then we go to Korea where apeckas where 36 00:01:27,200 --> 00:01:30,880 Speaker 2: the twenty one economies of APEC are and that's a 37 00:01:31,000 --> 00:01:33,959 Speaker 2: chance also for us to talk about that grouping and 38 00:01:33,959 --> 00:01:35,960 Speaker 2: what we're doing. But also we're in Korea, we're going 39 00:01:36,000 --> 00:01:38,280 Speaker 2: to have a conference of stategic partnership, a serious upgrade, 40 00:01:38,280 --> 00:01:41,080 Speaker 2: and of course Korea is our fifth largest trading partner. 41 00:01:41,280 --> 00:01:43,800 Speaker 2: It's pretty sizable for New Zealand. So that's really what 42 00:01:43,840 --> 00:01:45,360 Speaker 2: we're here to do, is just make sure we're doing 43 00:01:45,400 --> 00:01:47,960 Speaker 2: everything we can to open up and get to the 44 00:01:47,960 --> 00:01:51,840 Speaker 2: top drawer of relationships with all these countries so that 45 00:01:51,880 --> 00:01:53,800 Speaker 2: we can create opportunities for our businesses to come in 46 00:01:53,960 --> 00:01:55,480 Speaker 2: and sell a lot of stuff, and of course they are. 47 00:01:55,600 --> 00:01:58,880 Speaker 2: And we've had a fantastic exports record this year which 48 00:01:58,880 --> 00:01:59,440 Speaker 2: has been brought in. 49 00:02:00,080 --> 00:02:02,040 Speaker 1: Yes, the UN deal, will it get done this week 50 00:02:02,160 --> 00:02:02,400 Speaker 1: or not? 51 00:02:03,480 --> 00:02:05,320 Speaker 3: Yes it will? Yes it well so I hope too. 52 00:02:05,360 --> 00:02:07,240 Speaker 2: I've got to make a pitch tomorrow in a meeting 53 00:02:07,400 --> 00:02:10,520 Speaker 2: and then we will celebrate that, hopefully over a lunch 54 00:02:10,600 --> 00:02:13,880 Speaker 2: and then and then get that deal signed a link tomorrow. 55 00:02:14,000 --> 00:02:15,680 Speaker 1: Good. The Korean deal is worth what? 56 00:02:17,480 --> 00:02:18,919 Speaker 3: Not sure what it will be worth. 57 00:02:19,400 --> 00:02:21,160 Speaker 2: I mean we've done, We've got I've got an ft 58 00:02:21,280 --> 00:02:24,360 Speaker 2: A with Korea which has been actually therefore some time, 59 00:02:24,400 --> 00:02:26,000 Speaker 2: and we keep pushing to see whe we can get 60 00:02:26,000 --> 00:02:29,440 Speaker 2: that even further upgraded. But again, what this does is 61 00:02:29,480 --> 00:02:32,000 Speaker 2: put us into the top relation, top top draw of 62 00:02:32,040 --> 00:02:34,480 Speaker 2: relationships with them as well. And a lot of it is, 63 00:02:34,520 --> 00:02:35,920 Speaker 2: as I said, is you know, we're sending a lot 64 00:02:35,919 --> 00:02:37,959 Speaker 2: of product career. I went up there on a on 65 00:02:38,040 --> 00:02:41,200 Speaker 2: a state visit there and took a very large delegation 66 00:02:41,280 --> 00:02:43,640 Speaker 2: and again a lot of products and services, but also 67 00:02:43,760 --> 00:02:46,720 Speaker 2: some you know, technology businesses up there as well. 68 00:02:46,960 --> 00:02:49,400 Speaker 1: What's your sense in the you know, short time you've 69 00:02:49,400 --> 00:02:52,040 Speaker 1: been there, this this rules based order, free trade. What 70 00:02:52,080 --> 00:02:55,160 Speaker 1: we're about versus what some other countries are about these ways, 71 00:02:55,320 --> 00:02:58,440 Speaker 1: is that argument still winning? Is free trade still a thing? 72 00:02:58,639 --> 00:02:59,400 Speaker 1: Or are we losing? 73 00:03:00,400 --> 00:03:01,480 Speaker 3: No? It is sort of setting. 74 00:03:01,480 --> 00:03:03,400 Speaker 2: I mean you might remember hit the phone's pretty hard 75 00:03:03,560 --> 00:03:07,360 Speaker 2: April and then within Shilavondalan and Europe, and what we 76 00:03:07,400 --> 00:03:11,480 Speaker 2: have agreed is that the European Union and the CPTPP 77 00:03:11,680 --> 00:03:15,760 Speaker 2: countries and the European Union and the Arcian countries, which 78 00:03:15,800 --> 00:03:18,760 Speaker 2: represent those three blocks, are about forty percent of global trade, 79 00:03:18,760 --> 00:03:22,000 Speaker 2: which is very, very sizable. We would have made a 80 00:03:22,040 --> 00:03:23,639 Speaker 2: decision that we really want to make sure that those 81 00:03:23,680 --> 00:03:26,840 Speaker 2: blocks actually have interfaces that work with each other, so 82 00:03:26,880 --> 00:03:29,000 Speaker 2: when there are trade disputes we keep working through the 83 00:03:29,040 --> 00:03:32,560 Speaker 2: rules based system that we actually have an avenue for 84 00:03:33,240 --> 00:03:36,240 Speaker 2: talking about trade and economics between those blocks as well. 85 00:03:36,560 --> 00:03:39,480 Speaker 2: So we're actually will have both those trading dialogues as 86 00:03:39,480 --> 00:03:41,200 Speaker 2: we call them, in place before the end of the year. 87 00:03:41,240 --> 00:03:44,080 Speaker 2: And that came about because of what we were saying 88 00:03:44,160 --> 00:03:46,480 Speaker 2: around tariffs. And it's not that, yes, we're managing our 89 00:03:46,520 --> 00:03:50,760 Speaker 2: bilateral relationship with America around tariffs by and large fairly tidally, 90 00:03:50,880 --> 00:03:53,680 Speaker 2: but it's actually the flow on effects of if you 91 00:03:53,760 --> 00:03:56,280 Speaker 2: get other countries that are caught up in the tariff 92 00:03:56,320 --> 00:03:58,640 Speaker 2: war with the US and then they end up dumping 93 00:03:58,680 --> 00:04:01,200 Speaker 2: stock and then there's tit for tat tariffs. Before you know, 94 00:04:01,320 --> 00:04:03,000 Speaker 2: the whole system breaks down very quickly. 95 00:04:03,200 --> 00:04:04,840 Speaker 1: But you're on the heart of that system. I mean, 96 00:04:04,840 --> 00:04:07,400 Speaker 1: no one makes more sports give in Vietnam, cambod your 97 00:04:07,400 --> 00:04:09,760 Speaker 1: places like that. Are they deeply worried about what's going on? 98 00:04:10,080 --> 00:04:11,240 Speaker 3: Yeah, yeah they are. 99 00:04:11,400 --> 00:04:12,840 Speaker 2: I mean you would have seen even in the last 100 00:04:12,880 --> 00:04:15,120 Speaker 2: twenty four hours a lot of the Southeast Asian countries 101 00:04:15,120 --> 00:04:17,680 Speaker 2: that have surpluses with the US like we do. We've 102 00:04:17,720 --> 00:04:20,840 Speaker 2: got the lowest payment at fifteen percent. Many of them 103 00:04:20,880 --> 00:04:22,680 Speaker 2: mic are up at you know, forty percent, you know, 104 00:04:22,720 --> 00:04:24,960 Speaker 2: twenty to forty percent, so that I've been trying to 105 00:04:25,000 --> 00:04:27,920 Speaker 2: negotiate sort of into the lower twenties. But yes, many 106 00:04:27,920 --> 00:04:30,120 Speaker 2: of them are incredibly worried about it when I talk 107 00:04:30,200 --> 00:04:31,520 Speaker 2: to them private one on one. 108 00:04:31,720 --> 00:04:33,960 Speaker 1: You talked about Von de Layon last week before you 109 00:04:34,000 --> 00:04:35,880 Speaker 1: got to where you are this morning, the EU meeting 110 00:04:35,960 --> 00:04:38,600 Speaker 1: was here. Did that go well? And is that of 111 00:04:38,720 --> 00:04:42,200 Speaker 1: material consequence? Are things improving with that particular part of the. 112 00:04:42,120 --> 00:04:46,000 Speaker 2: World, Yeah, it is, And partly because you know, historically 113 00:04:46,000 --> 00:04:48,120 Speaker 2: with the UK and the EU, we've always banged on 114 00:04:48,160 --> 00:04:51,040 Speaker 2: about our historical ties now like mindedness and all the 115 00:04:51,120 --> 00:04:53,680 Speaker 2: historical stuff of world wars and all that sort of thing. 116 00:04:54,240 --> 00:04:56,840 Speaker 2: But the reality is now, with the FTAs and our 117 00:04:56,880 --> 00:04:59,359 Speaker 2: defense commitments, we've actually got quite a bit to propel 118 00:04:59,400 --> 00:05:02,039 Speaker 2: the relationship going forward. So to give you a feel 119 00:05:02,040 --> 00:05:04,200 Speaker 2: for it, our trade with the UK went up I 120 00:05:04,200 --> 00:05:07,200 Speaker 2: think twenty percent. Our trade with the European Union has 121 00:05:07,240 --> 00:05:10,239 Speaker 2: gone up twenty eight percent. So we've added two billion 122 00:05:10,320 --> 00:05:14,080 Speaker 2: dollars since that FDA came into force, brought in early 123 00:05:14,160 --> 00:05:16,680 Speaker 2: on in our government accelerated the INTRIE but it's about 124 00:05:16,680 --> 00:05:19,120 Speaker 2: twenty one billion dollars worth of trade in Europe. So 125 00:05:19,600 --> 00:05:22,799 Speaker 2: it's a very efficient vehicle for US. It's also great 126 00:05:22,839 --> 00:05:25,839 Speaker 2: to have options available for many of our businesses that 127 00:05:25,839 --> 00:05:27,840 Speaker 2: have got very very agile and moving out of one 128 00:05:27,880 --> 00:05:32,159 Speaker 2: market into another market, or shifting their weight and having 129 00:05:32,240 --> 00:05:34,560 Speaker 2: more diversified markets to play in. It's been really important. 130 00:05:34,760 --> 00:05:36,279 Speaker 1: By the time you get to apick it a little 131 00:05:36,279 --> 00:05:38,120 Speaker 1: bit about the US and China, there's some sort of 132 00:05:38,120 --> 00:05:41,320 Speaker 1: framework there. I mean, yes, it's important globally, but are 133 00:05:41,320 --> 00:05:44,159 Speaker 1: they going to steal the show, and. 134 00:05:44,200 --> 00:05:46,080 Speaker 2: I think they will be you know, that'll be a 135 00:05:46,200 --> 00:05:50,200 Speaker 2: very dominant conversation. I spoke to Premier Lee of China 136 00:05:50,520 --> 00:05:53,599 Speaker 2: this evening about it. They were feeling they had had 137 00:05:53,640 --> 00:05:56,160 Speaker 2: some sort of you know, their secretaries and their ministers 138 00:05:56,200 --> 00:05:59,640 Speaker 2: have done some pre work to sort of calm things down. 139 00:06:00,160 --> 00:06:02,320 Speaker 2: And for the world's two largest economies, you know, we 140 00:06:02,360 --> 00:06:05,880 Speaker 2: actually all want them to de escalate and actually get 141 00:06:05,880 --> 00:06:09,000 Speaker 2: to a better understanding of each other and to get 142 00:06:09,000 --> 00:06:10,960 Speaker 2: it get it sorted basically, so we don't have the 143 00:06:11,040 --> 00:06:14,480 Speaker 2: chaos from the disruption that we've been experiencing. So it's 144 00:06:14,520 --> 00:06:16,880 Speaker 2: in all of our collective interest that that's a positive conversation, 145 00:06:17,040 --> 00:06:19,640 Speaker 2: which you know, all indications are that they have been 146 00:06:19,680 --> 00:06:22,039 Speaker 2: working towards a framework that they think that they can 147 00:06:22,279 --> 00:06:24,719 Speaker 2: get to a much more de escalated place, which would 148 00:06:24,720 --> 00:06:25,360 Speaker 2: be good for the world. 149 00:06:25,480 --> 00:06:28,040 Speaker 1: And how much angst within your camp as to whether 150 00:06:28,120 --> 00:06:29,279 Speaker 1: you get to meet Trump or not. 151 00:06:31,080 --> 00:06:34,000 Speaker 2: Look, I mean, we'll see what happens. I mean, basically 152 00:06:34,240 --> 00:06:38,920 Speaker 2: today has been a series of bilaterals with I think Vietnam, Cambodia, Thailand, Laos, 153 00:06:39,160 --> 00:06:43,280 Speaker 2: India and obviously Premier League in China, and then We've 154 00:06:43,320 --> 00:06:45,520 Speaker 2: got more tomorrow here in KL and then there'll be 155 00:06:46,080 --> 00:06:48,039 Speaker 2: from over a couple of days in Korea as well, 156 00:06:48,120 --> 00:06:50,760 Speaker 2: So look, we'll see what happens. His schedule is pretty fluid. 157 00:06:50,800 --> 00:06:52,960 Speaker 2: As you can see, he's jammed in quite a bit. 158 00:06:52,960 --> 00:06:55,200 Speaker 2: He's come into KL, he's in left Ko, been in 159 00:06:55,279 --> 00:06:59,039 Speaker 2: Japan today, I think tomorrow, then rocks into Korea and 160 00:06:59,080 --> 00:07:01,520 Speaker 2: obviously even talk of whether you go to North Korea 161 00:07:01,560 --> 00:07:03,160 Speaker 2: and meet with Keim John and I've seen a new 162 00:07:03,200 --> 00:07:05,719 Speaker 2: media reports this evening, so we'll just see where it 163 00:07:05,720 --> 00:07:06,880 Speaker 2: all gets to and what happens. 164 00:07:07,080 --> 00:07:09,600 Speaker 1: A couple of domestic issues. Ravishanka, the new CEO of 165 00:07:09,600 --> 00:07:11,520 Speaker 1: the in New Zealand, was on the program last week. 166 00:07:11,840 --> 00:07:14,800 Speaker 1: He started talking about subsidizing certain routes, you know, the 167 00:07:14,880 --> 00:07:17,000 Speaker 1: roots that aren't well serviced by in New Zealand. As 168 00:07:17,000 --> 00:07:19,480 Speaker 1: a major shareholder, one is the government, but two is 169 00:07:19,480 --> 00:07:23,120 Speaker 1: a major shareholder. Are you into that at all or not? 170 00:07:23,120 --> 00:07:23,600 Speaker 3: Not? Really? 171 00:07:24,040 --> 00:07:26,000 Speaker 2: I really wanted in New Zealand to focused on building 172 00:07:26,240 --> 00:07:28,480 Speaker 2: a better business, you know, and that means get focused 173 00:07:28,480 --> 00:07:32,200 Speaker 2: on your costs, your customer, your commercials and the culture 174 00:07:32,280 --> 00:07:34,640 Speaker 2: you know, and get those things right and do everything 175 00:07:34,680 --> 00:07:37,000 Speaker 2: you can to control that that part of the business 176 00:07:37,560 --> 00:07:40,000 Speaker 2: with respect to subsidies. Frankly, you know that's dollars that 177 00:07:40,040 --> 00:07:42,800 Speaker 2: we then are not spending on hospitals or schools, and 178 00:07:43,120 --> 00:07:45,840 Speaker 2: such a pretty simple choice for me. So my message 179 00:07:45,880 --> 00:07:48,120 Speaker 2: back to then would be in New Zealand, you know, 180 00:07:48,280 --> 00:07:51,800 Speaker 2: keep working your own cost base over your commercials, your 181 00:07:51,800 --> 00:07:55,320 Speaker 2: customer experience and obviously your new culture inside the business. 182 00:07:55,480 --> 00:07:57,720 Speaker 1: And your foreign minister was at the Oxford Union and 183 00:07:57,760 --> 00:08:00,560 Speaker 1: he said the courts in New Zealand are undermining democracy? 184 00:08:00,720 --> 00:08:01,240 Speaker 1: Is he right? 185 00:08:03,480 --> 00:08:03,880 Speaker 3: I wouldn't. 186 00:08:03,880 --> 00:08:06,200 Speaker 2: I wouldn't. I wouldn't go that far myself to say 187 00:08:06,240 --> 00:08:08,280 Speaker 2: that myself. I think we've got good commedy between the 188 00:08:08,320 --> 00:08:10,280 Speaker 2: courts and government. I think it's important that we do. 189 00:08:11,120 --> 00:08:13,520 Speaker 2: I know he's arguing in his New Zealand first capacity 190 00:08:13,560 --> 00:08:16,720 Speaker 2: at that debate, but now I'd probably disagree with him. 191 00:08:16,760 --> 00:08:18,680 Speaker 2: We've got, you know, where we are. We know Parliament 192 00:08:18,760 --> 00:08:22,000 Speaker 2: and law made in Parliament a supreme and that's where 193 00:08:22,000 --> 00:08:24,280 Speaker 2: you've seen us. Where we've been we've had adverse court 194 00:08:24,320 --> 00:08:27,120 Speaker 2: decisions or we felt that thresholds have been lowered and 195 00:08:27,120 --> 00:08:30,360 Speaker 2: the intent of what Parliament intended has been changed, then 196 00:08:30,400 --> 00:08:32,440 Speaker 2: we end up going back and passing legislation to lock 197 00:08:32,480 --> 00:08:33,000 Speaker 2: that in again. 198 00:08:33,080 --> 00:08:36,400 Speaker 1: All right, appreciate your time, Christopert, sleep well, christ re 199 00:08:36,480 --> 00:08:39,920 Speaker 1: Luxant out of Asian ahead of APEX. For more from 200 00:08:39,920 --> 00:08:43,040 Speaker 1: the Mic Asking Breakfast, listen live to news talks that'd 201 00:08:43,080 --> 00:08:46,160 Speaker 1: be from six am weekdays, or follow the podcast on 202 00:08:46,200 --> 00:08:46,960 Speaker 1: iHeartRadio