1 00:00:00,000 --> 00:00:02,040 Speaker 1: I always happy to report good news for the economy. 2 00:00:02,080 --> 00:00:04,800 Speaker 1: Today it's another trade deal, this time the Golf Cooperation Council. 3 00:00:04,840 --> 00:00:06,800 Speaker 1: That's a grouping of six Arab states. You got bar 4 00:00:06,960 --> 00:00:10,360 Speaker 1: raing q Eight, Aman, Qatar, Saudi Arabia and the UAE. 5 00:00:10,520 --> 00:00:13,000 Speaker 1: The deal being described as the best the GCC has 6 00:00:13,080 --> 00:00:16,640 Speaker 1: done yet from Doha. Trade Minister Tom McClay Morning, make 7 00:00:16,680 --> 00:00:19,840 Speaker 1: good morning, described as an eighteen year long ambition. 8 00:00:20,000 --> 00:00:21,439 Speaker 2: Why has it taken so long? 9 00:00:22,520 --> 00:00:24,080 Speaker 3: Well, look, it's been a range of things. 10 00:00:24,120 --> 00:00:27,320 Speaker 4: You might remember that many years ago we got quite 11 00:00:27,320 --> 00:00:30,080 Speaker 4: close and then there was an issue with Saudi Arabia 12 00:00:30,520 --> 00:00:34,400 Speaker 4: around live sheep exports. I was able to re engage 13 00:00:34,560 --> 00:00:37,919 Speaker 4: with the GCC ministers in February of this year. I've 14 00:00:37,960 --> 00:00:40,440 Speaker 4: had seven this is my seventh visit up here and 15 00:00:40,479 --> 00:00:42,559 Speaker 4: I'm just very very pleased that we've been able to 16 00:00:42,640 --> 00:00:43,240 Speaker 4: land this deal. 17 00:00:43,280 --> 00:00:45,360 Speaker 3: It's really good for our exporters. 18 00:00:45,400 --> 00:00:47,479 Speaker 4: It's one of the highest quality deals the GCC has 19 00:00:47,520 --> 00:00:48,080 Speaker 4: ever done. 20 00:00:48,159 --> 00:00:50,400 Speaker 1: So they would be what you would call, and I 21 00:00:50,520 --> 00:00:54,920 Speaker 1: reference once again the UK Deal true free traders. 22 00:00:55,200 --> 00:00:56,680 Speaker 3: Yeah, well, yes and no. 23 00:00:57,040 --> 00:01:00,880 Speaker 4: In as far as our agreement is concerned, we have 24 00:01:01,120 --> 00:01:03,720 Speaker 4: ninety nine percent of our exports will be tariff free 25 00:01:03,720 --> 00:01:07,400 Speaker 4: over ten years when we add the UAE deal to it, 26 00:01:07,440 --> 00:01:11,399 Speaker 4: which we did a month ago, about fifty percent on 27 00:01:11,640 --> 00:01:14,600 Speaker 4: day one on entry into force. So in that respect, yes, 28 00:01:14,640 --> 00:01:16,319 Speaker 4: But if you look at all the other trade deals 29 00:01:16,360 --> 00:01:18,800 Speaker 4: have done and have done a few now, they're much 30 00:01:18,840 --> 00:01:21,000 Speaker 4: lower levels of ambition. So one of the things we've 31 00:01:21,040 --> 00:01:23,240 Speaker 4: been able to do during the course of the last 32 00:01:23,240 --> 00:01:26,560 Speaker 4: seven months is raised that level of ambition and demonstrate 33 00:01:26,680 --> 00:01:28,720 Speaker 4: to them that, you know, getting rid of these tariffs, 34 00:01:28,760 --> 00:01:32,039 Speaker 4: even over time, will be good for both sides. And 35 00:01:32,080 --> 00:01:34,080 Speaker 4: I'll tell you what they're most interested in us now 36 00:01:34,160 --> 00:01:37,120 Speaker 4: because that issue of the live sheep exports is gone. 37 00:01:37,360 --> 00:01:40,679 Speaker 4: It's finished, it wasn't raised, there's nothing in the agreement 38 00:01:40,680 --> 00:01:43,319 Speaker 4: about that, so no commitments, nothing at all. What they 39 00:01:43,360 --> 00:01:46,279 Speaker 4: really are after now is to be able to feed 40 00:01:46,319 --> 00:01:49,320 Speaker 4: their own citizens and a growing tourism industry with high 41 00:01:49,400 --> 00:01:51,720 Speaker 4: quality save food, and I reckon that's why we the 42 00:01:51,720 --> 00:01:53,320 Speaker 4: crackt They have a lot of interest in that. 43 00:01:53,480 --> 00:01:54,400 Speaker 3: You know that from New Zealand. 44 00:01:54,640 --> 00:01:55,400 Speaker 2: Is there a bit of a theme. 45 00:01:55,440 --> 00:01:56,720 Speaker 1: I don't know if you've caught up on this because 46 00:01:56,720 --> 00:01:59,200 Speaker 1: you're traveling the world, but Shane Jones came back from Singapore. 47 00:01:59,240 --> 00:02:03,559 Speaker 1: What Singapore interested in is food security. Is food security 48 00:02:03,600 --> 00:02:09,080 Speaker 1: for a country like us, the go to play it is. 49 00:02:09,120 --> 00:02:12,160 Speaker 4: Now post COVID, Yes, absolutely, and when if you look 50 00:02:12,160 --> 00:02:14,000 Speaker 4: at the world at the moment, you know with all 51 00:02:14,040 --> 00:02:18,040 Speaker 4: the uncertainty and geopolitics, it is and food security is 52 00:02:18,080 --> 00:02:21,280 Speaker 4: two things. It's safe food because even if you have food, 53 00:02:21,360 --> 00:02:24,960 Speaker 4: if you're not sure it's safe for your citizens to consume, 54 00:02:25,200 --> 00:02:26,000 Speaker 4: you know, it's. 55 00:02:25,760 --> 00:02:26,359 Speaker 3: Not the same. 56 00:02:26,560 --> 00:02:28,320 Speaker 4: And then making sure you have enough of it. And 57 00:02:28,360 --> 00:02:31,840 Speaker 4: certainly the conversations I've had with the various countries and 58 00:02:31,880 --> 00:02:35,560 Speaker 4: all six of the trade ministers from these countries today 59 00:02:35,680 --> 00:02:38,360 Speaker 4: here when we are initial, you know, the end of 60 00:02:38,440 --> 00:02:43,840 Speaker 4: negotiation is their desire to have long term, sustainable relationships 61 00:02:44,160 --> 00:02:46,880 Speaker 4: where when they need the food, we will supply it 62 00:02:46,880 --> 00:02:47,240 Speaker 4: to them. 63 00:02:47,240 --> 00:02:48,880 Speaker 3: And that's something we said we'll work through. 64 00:02:48,880 --> 00:02:51,240 Speaker 4: But the first step is to get those tariffs out 65 00:02:51,240 --> 00:02:53,320 Speaker 4: of the way, get some certainty so in New Zealanders 66 00:02:53,360 --> 00:02:56,480 Speaker 4: can invest time and effort into you know, this trade relationship. 67 00:02:56,639 --> 00:02:58,480 Speaker 1: What's the growth path on this deal? Because if you 68 00:02:58,520 --> 00:03:00,480 Speaker 1: look at the GCC, it's made up of a bunch 69 00:03:00,480 --> 00:03:03,520 Speaker 1: of countries including the UAE. But we've got a separate 70 00:03:03,639 --> 00:03:06,200 Speaker 1: UAE deal. The big money seems to be with the 71 00:03:06,320 --> 00:03:07,920 Speaker 1: UAE in Saudi Arabia. 72 00:03:09,160 --> 00:03:09,880 Speaker 3: Yeah, that's right. 73 00:03:10,280 --> 00:03:13,639 Speaker 4: We sell there's about three billion dollars worth a two 74 00:03:13,680 --> 00:03:14,640 Speaker 4: way trade. 75 00:03:14,680 --> 00:03:17,040 Speaker 3: We sell them two point six billion every year. 76 00:03:17,160 --> 00:03:19,800 Speaker 4: Of that therere is about one point seven billion, and 77 00:03:20,000 --> 00:03:22,919 Speaker 4: red meat about two hundred and sixty million. Their terriff 78 00:03:23,000 --> 00:03:25,720 Speaker 4: rates are not high, but you know, it's a very 79 00:03:25,760 --> 00:03:29,440 Speaker 4: competitive market. So even getting them to zero gives us 80 00:03:29,480 --> 00:03:30,959 Speaker 4: a competitive advantage. 81 00:03:31,080 --> 00:03:32,920 Speaker 3: But this deal, as with the UE. 82 00:03:32,760 --> 00:03:35,320 Speaker 4: Is about how much more we can trade with them, 83 00:03:35,360 --> 00:03:38,880 Speaker 4: not what we're doing now. And look, I suspect that 84 00:03:38,960 --> 00:03:41,880 Speaker 4: over the next four or five years we'll see that 85 00:03:42,200 --> 00:03:45,480 Speaker 4: two and a half billion dollars with exports jump significantly. 86 00:03:45,960 --> 00:03:48,040 Speaker 3: The very very big lamb meters. 87 00:03:48,440 --> 00:03:50,680 Speaker 4: We don't sell them a lot of lamb, but they 88 00:03:50,680 --> 00:03:53,240 Speaker 4: will start buying it from us. So for our sheep 89 00:03:53,280 --> 00:03:55,920 Speaker 4: farmers are doing it hard. It's a real opportunity here. 90 00:03:56,240 --> 00:03:58,160 Speaker 4: The other thing that I think is very important. We've 91 00:03:58,160 --> 00:04:02,600 Speaker 4: got a lot of a liberalization of services. So if 92 00:04:02,600 --> 00:04:06,440 Speaker 4: you think about Saudi Arabia, they're investing trillions of dollars 93 00:04:06,440 --> 00:04:07,400 Speaker 4: into infrastructure. 94 00:04:07,440 --> 00:04:09,120 Speaker 3: They are building their country. 95 00:04:09,200 --> 00:04:13,120 Speaker 4: We already have engineering firms and others up here from 96 00:04:13,160 --> 00:04:16,280 Speaker 4: New Zealand. They now have greater rights under this agreement, 97 00:04:16,480 --> 00:04:20,160 Speaker 4: and I think we'll see our services trade grow significantly 98 00:04:20,240 --> 00:04:22,119 Speaker 4: at the same time as we sell them more food 99 00:04:22,160 --> 00:04:22,599 Speaker 4: and fiber. 100 00:04:22,960 --> 00:04:26,000 Speaker 1: Quick word on India story here yesterday. They're changing the 101 00:04:26,040 --> 00:04:28,159 Speaker 1: way they engage with the world. They're not interested in 102 00:04:28,200 --> 00:04:30,480 Speaker 1: small countries. They want to do the big play. Is 103 00:04:30,480 --> 00:04:31,919 Speaker 1: that a problem for us or not? 104 00:04:33,120 --> 00:04:33,800 Speaker 3: Well, no, it's not. 105 00:04:34,080 --> 00:04:36,920 Speaker 4: We're putting a lot of effort into that relationship. And 106 00:04:37,040 --> 00:04:39,120 Speaker 4: you know, again, I've had six or seven visits and 107 00:04:39,160 --> 00:04:39,799 Speaker 4: it's building. 108 00:04:40,040 --> 00:04:41,680 Speaker 3: We're starting to sell more. 109 00:04:41,680 --> 00:04:44,880 Speaker 4: And two directions, the Indian President visited New Zealand and 110 00:04:45,000 --> 00:04:48,320 Speaker 4: at the same time, you know, there's an invitation from 111 00:04:48,520 --> 00:04:50,600 Speaker 4: Prime Minister Modi for Prime Minister. 112 00:04:50,360 --> 00:04:51,599 Speaker 3: Lux to visit as well. 113 00:04:52,160 --> 00:04:54,360 Speaker 4: I think what that signaling is they do want to 114 00:04:54,360 --> 00:04:57,440 Speaker 4: do deals with larger countries because they haven't got any 115 00:04:57,480 --> 00:04:59,560 Speaker 4: of those. They haven't got the EU, they haven't got 116 00:04:59,600 --> 00:05:02,240 Speaker 4: the UK, they haven't got the US, they haven't got China. 117 00:05:02,720 --> 00:05:05,880 Speaker 4: But in my engagement with them, there are other reasons 118 00:05:05,880 --> 00:05:08,159 Speaker 4: that they are interested in New Zealand, and some of 119 00:05:08,200 --> 00:05:12,000 Speaker 4: that is the innovation and technology we have around agriculture, 120 00:05:12,040 --> 00:05:13,680 Speaker 4: so I'm still very optimistic there. 121 00:05:13,839 --> 00:05:14,320 Speaker 3: That is all. 122 00:05:14,440 --> 00:05:17,159 Speaker 4: We've always said that relationship over the last six years 123 00:05:17,160 --> 00:05:19,359 Speaker 4: of the labor government was underdone and we have to 124 00:05:19,400 --> 00:05:21,200 Speaker 4: invest in it first before we get close to. 125 00:05:21,120 --> 00:05:24,240 Speaker 3: A trade arrangement. I'll have another trip up to India 126 00:05:24,279 --> 00:05:25,240 Speaker 3: before the end of the year. 127 00:05:25,279 --> 00:05:27,680 Speaker 4: I'm just going to keep putting the effort in because 128 00:05:27,720 --> 00:05:29,800 Speaker 4: if we don't, we know what we get, which is nothing. 129 00:05:29,600 --> 00:05:31,520 Speaker 2: Good on You have a good weekend, appreciate it. From Doha. 130 00:05:31,600 --> 00:05:32,839 Speaker 2: Todd McLay, the Trade Ministry. 131 00:05:33,240 --> 00:05:36,159 Speaker 4: For more from the Mic Asking Breakfast, listen live to 132 00:05:36,279 --> 00:05:39,320 Speaker 4: news talks. It'd be from six am weekdays, or follow 133 00:05:39,400 --> 00:05:40,960 Speaker 4: the podcast on iHeartRadio.