1 00:00:00,120 --> 00:00:03,000 Speaker 1: Farmer confidence going through the roof. This is the new 2 00:00:03,080 --> 00:00:06,440 Speaker 1: Rabobank survey and it is the second highest level in 3 00:00:06,480 --> 00:00:09,920 Speaker 1: a decade. Higher prices, of course, rising demand for commodities. 4 00:00:10,000 --> 00:00:14,880 Speaker 1: Dairy farmers have the strongest investment intent, horticulturalists the weakest, 5 00:00:15,040 --> 00:00:17,560 Speaker 1: joining us as Todd maclay, the Trade Minister, good morning. 6 00:00:18,640 --> 00:00:20,720 Speaker 2: Right, good morning, Yeah, good news all round. 7 00:00:21,040 --> 00:00:23,640 Speaker 1: Prices are good for now, so things are looking up. 8 00:00:24,600 --> 00:00:26,880 Speaker 2: Yeah, there's good news. A lot of farmers have been 9 00:00:26,880 --> 00:00:28,639 Speaker 2: doing it a bit tough for a number of years, 10 00:00:28,640 --> 00:00:31,400 Speaker 2: so it's pleasing to see. But I think more importantly 11 00:00:31,440 --> 00:00:33,920 Speaker 2: it's very good for the New Zealand economy. We know 12 00:00:34,080 --> 00:00:37,080 Speaker 2: when the primary sector is doing well and prices are up, 13 00:00:37,440 --> 00:00:40,080 Speaker 2: they start spending money and so we're starting to see 14 00:00:40,560 --> 00:00:42,880 Speaker 2: the green roots of growth coming from rural New Zealand. 15 00:00:42,960 --> 00:00:45,560 Speaker 1: You've got this trade delegation underway at the moment, signing 16 00:00:45,600 --> 00:00:50,800 Speaker 1: five new commercial partnerships between Saudi's and New Zealand companies 17 00:00:50,840 --> 00:00:53,000 Speaker 1: worth one hundred million dollars. Can you tell us what 18 00:00:53,000 --> 00:00:53,520 Speaker 1: they're about? 19 00:00:54,480 --> 00:00:57,720 Speaker 2: Yeah, look, I'm up here with twenty two or twenty 20 00:00:57,800 --> 00:01:00,760 Speaker 2: three New Zealand companies. A range of companies who are 21 00:01:00,800 --> 00:01:03,840 Speaker 2: involved in sort of food production and export from some 22 00:01:03,920 --> 00:01:06,880 Speaker 2: of the honey companies, a couple of Mari honey companies. Actually, 23 00:01:06,880 --> 00:01:09,360 Speaker 2: you're up here doing pretty well. And then we've got 24 00:01:09,440 --> 00:01:11,560 Speaker 2: others who are making films and some on like that. 25 00:01:11,920 --> 00:01:13,520 Speaker 2: So this is just an opportunity for us to get 26 00:01:13,520 --> 00:01:16,800 Speaker 2: into Saudi, which is a big, big potential for New Zealand. 27 00:01:16,959 --> 00:01:20,040 Speaker 2: You remember we concluded a trade agreement with the GCC 28 00:01:20,200 --> 00:01:22,800 Speaker 2: including Saudi last year, and so this was just a 29 00:01:22,920 --> 00:01:26,240 Speaker 2: chance for them to sign some deals with either partners 30 00:01:26,240 --> 00:01:28,760 Speaker 2: have already had that sort of take their trade further, 31 00:01:29,280 --> 00:01:32,080 Speaker 2: or new companies they're working with. I think that one 32 00:01:32,120 --> 00:01:34,640 Speaker 2: hundred million dollars of the five deal side of day 33 00:01:35,120 --> 00:01:37,960 Speaker 2: is only the start of the opportunity up here. It's 34 00:01:38,040 --> 00:01:41,679 Speaker 2: just it's an economy that's growing and we with the 35 00:01:41,720 --> 00:01:43,920 Speaker 2: private sector, the government, the privacy can been putting in 36 00:01:43,959 --> 00:01:46,039 Speaker 2: a lot of effort and I think it's starting to 37 00:01:46,040 --> 00:01:46,760 Speaker 2: pay dividends. 38 00:01:46,840 --> 00:01:49,880 Speaker 1: What do they want with WESA, Well, we. 39 00:01:50,480 --> 00:01:52,000 Speaker 2: So weather have come up and signed a couple of 40 00:01:52,600 --> 00:01:57,000 Speaker 2: agreements with one of the Saudi princesses actually, and so 41 00:01:57,080 --> 00:01:58,840 Speaker 2: what that will be about is if you think about 42 00:01:58,880 --> 00:02:02,320 Speaker 2: down in New Zealand, done exhibitions in New Zealand. There's 43 00:02:02,320 --> 00:02:05,279 Speaker 2: a bit of filming and so on. So as Saudi 44 00:02:05,320 --> 00:02:08,760 Speaker 2: Arabia is investing heavily in their economy to open up, 45 00:02:08,840 --> 00:02:11,800 Speaker 2: they want culture and tourism to be on show. And 46 00:02:11,960 --> 00:02:14,000 Speaker 2: some of the suggestion is wetter will pay our ready 47 00:02:14,000 --> 00:02:16,840 Speaker 2: big part in one telling the story and too, how 48 00:02:17,440 --> 00:02:19,280 Speaker 2: you know how to bring visitors in and show them 49 00:02:19,320 --> 00:02:22,200 Speaker 2: more than just sand dune's and dunes and nice pictures. 50 00:02:22,400 --> 00:02:24,360 Speaker 1: I'm going to start. I've got three really quick questions 51 00:02:24,360 --> 00:02:26,720 Speaker 1: for you. One on the meat day target review. Have 52 00:02:26,800 --> 00:02:29,080 Speaker 1: you got any result to update farmers on this morning? 53 00:02:29,880 --> 00:02:33,040 Speaker 2: So working through that. There's a cabinet process we're working 54 00:02:33,040 --> 00:02:35,160 Speaker 2: through now, so I'm going to respect my colleagues, but 55 00:02:35,160 --> 00:02:37,720 Speaker 2: we're not too far away. I can give every farmer 56 00:02:37,760 --> 00:02:40,880 Speaker 2: and every New zealand and assurance we will be sensible. 57 00:02:40,880 --> 00:02:44,760 Speaker 2: We have to meet our obligations and targets or obligations internationally, 58 00:02:45,000 --> 00:02:46,800 Speaker 2: but we're not going to close down farms and sends 59 00:02:46,880 --> 00:02:48,720 Speaker 2: job and production overseas. Along the way. 60 00:02:48,960 --> 00:02:51,840 Speaker 1: A lot of calls to sanction Israel. By my numbers 61 00:02:52,040 --> 00:02:55,200 Speaker 1: our trade, their exports to New Zealand worth only about 62 00:02:55,360 --> 00:02:58,160 Speaker 1: zero point three percent to them. Have you done any 63 00:02:58,200 --> 00:02:59,440 Speaker 1: work or got any advice on that? 64 00:03:00,400 --> 00:03:02,960 Speaker 2: No, I haven't. Out of the Minister our Foreign Affairs 65 00:03:03,040 --> 00:03:04,840 Speaker 2: or we've been talking a lot more about that quite soon. 66 00:03:04,880 --> 00:03:06,160 Speaker 2: In the government's position. 67 00:03:06,280 --> 00:03:10,280 Speaker 1: There's monthly meetings with officials from the US on updating. Yes, 68 00:03:10,280 --> 00:03:12,720 Speaker 1: it's fifteen percent the tariff right now, but we wanted 69 00:03:12,800 --> 00:03:15,600 Speaker 1: some clarity going forward. Do you have any for exporters 70 00:03:15,639 --> 00:03:16,079 Speaker 1: this morning? 71 00:03:17,080 --> 00:03:20,160 Speaker 2: So we're still working at that. You know. The interesting 72 00:03:20,160 --> 00:03:23,000 Speaker 2: thing is I'm here and elsewhere around the world talking 73 00:03:23,040 --> 00:03:25,800 Speaker 2: to others, they too are facing uncertainty. I think that 74 00:03:25,880 --> 00:03:28,560 Speaker 2: at the moment the evidence is suggesting that uncertainty is 75 00:03:28,600 --> 00:03:32,320 Speaker 2: causing greater harm than the tariff rate. We are working 76 00:03:32,360 --> 00:03:34,920 Speaker 2: through one of the things as if we go back 77 00:03:34,960 --> 00:03:38,160 Speaker 2: to a trade deficit, the US has a trade surplus 78 00:03:38,200 --> 00:03:40,480 Speaker 2: against US, how does that rate come down, and how 79 00:03:40,520 --> 00:03:42,640 Speaker 2: do we get at so it won't keep moving. So 80 00:03:43,040 --> 00:03:45,800 Speaker 2: look that we're putting every single effort in that we can. 81 00:03:46,360 --> 00:03:48,520 Speaker 2: Almost every other country in the world has the same 82 00:03:48,520 --> 00:03:51,920 Speaker 2: degree of uncertainty. The very good news, I suppose, though, 83 00:03:51,960 --> 00:03:53,760 Speaker 2: as our exports are nimbal and many of them are 84 00:03:53,800 --> 00:03:56,080 Speaker 2: choosing to look to other markets. You know at the 85 00:03:56,080 --> 00:03:59,720 Speaker 2: time that we are facing higher tariffs in the US 86 00:04:00,160 --> 00:04:02,880 Speaker 2: sold extra billion dollars to the EU over the last year, 87 00:04:02,920 --> 00:04:05,400 Speaker 2: which is predominantly from the primary sector, and so there 88 00:04:05,440 --> 00:04:08,840 Speaker 2: are still lots of opportunities, but the US, for every 89 00:04:08,880 --> 00:04:11,720 Speaker 2: trading nation, is a confused market at the moment. 90 00:04:12,120 --> 00:04:15,320 Speaker 1: Appreciate your time even though the uncertain tea rains. Minister 91 00:04:15,360 --> 00:04:17,800 Speaker 1: Tod McLay with US Live this morning. 92 00:04:18,320 --> 00:04:21,320 Speaker 2: For more from Early Edition with Ryan Bridge. Listen live 93 00:04:21,440 --> 00:04:24,440 Speaker 2: to News Talks it'd be from five am weekdays, or 94 00:04:24,520 --> 00:04:26,440 Speaker 2: follow the podcast on iHeartRadio.