<h3>&nbsp;</h3> <h3>Our place in an uncertain world - Trading our way to a better future</h3> <p>With the global pandemic continuing to cause uncertainty around the world, global supply chain disruption and a rise in protectionist policy worldwide, New Zealand's international trade endeavours continue to face significant headwinds.&nbsp;<br> </p> <p>The ASB Backing Business International Trade series is focused on addressing these uncertainties and helping Kiwi businesses by sharing insights, practical advice and examples to help them succeed and grow internationally.</p> <p>The first instalment of this three-part series focused on the importance of international trade to New Zealand's economy. The panel of experts including Vangelis Vitalis (New Zealand Ministry of Foreign Affairs and Trade), Rachel Maidment (New Zealand China Council), Leon Grice (NZUS Council), Sarah Salmond, (MinterEllisonRuddWatts) and Jimmy Walsh (Beca Ltd) hosted by ASB's Paul Gestro discussed how nations trade today, and shared helpful insights and examples around how it might look in the future.</p> <p><b>Where are we now?</b></p> <p>For the past 12 months, New Zealand's goods exports have been a pocket of strength for the domestic economy. Because our borders remain closed and international travel constrained, international tourism - New Zealand's biggest export - has all but stopped. Kiwi exporters are now the primary source of foreign income into the country and are critical to the local economy.</p> <p>&quot;China's economy was one of only a few economies to grow in 2020… this meant that NZ exports to China held up well over this period,&quot; said Rachel during the panel discussion.</p> <p>This resilience in New Zealand's export sector helped drive our annual trade balance to a $2.7 billion surplus in January - close to the largest on record. This time last year, annual trade was sitting at a $3.7 billion deficit. But it hasn't all been smooth sailing.&nbsp;</p> <p>&quot;Every business fought to get through the initial lockdowns - they're the ones who reshaped and reorganised,&quot; said Leon. &quot;They're the ones who deserve the vast majority of the credit for where we are at as a nation.&quot;&nbsp;&nbsp;</p> <p><b>Where are we heading?</b></p> <p>The response to the COVID-19 pandemic created an initial urgency for businesses to adapt to get through. It's important to acknowledge New Zealand has been good at dealing with the crisis, and that response must extend into recovery. &quot;I think we deal with acute situations better than chronic situations sometimes… now we're getting to a point where it's a lot more nuanced,&quot; Jimmy said.&nbsp;</p> <p>In the middle of 2020, the New Zealand Government introduced a trade recovery strategy to support exporters through the economic impacts of the pandemic which comprised of three pillars:</p> <ul> <li>Retooling to help support exporters</li> <li>Reinvigorating international trade architecture</li> <li>Refreshing our key trade relationships&nbsp;</li> </ul> <p>When it comes to New Zealand's key trade relationships, Leon said the US market is one to watch.&nbsp;</p> <p>&quot;There is $1.6 trillion of unspent consumer money sitting in the pockets of big spenders in the United States - they haven't been able to get out and do any purchasing. Expert investors are saying it's going to a be a ‘roaring 20s' when this money is released into the US economy. This will have an impact on Chinese made products, and New Zealand-made goods.&quot;</p> <p>The real test of New Zealand's trade recovery strategy is understanding where it's going to be in a few years down the track, said Vangelis.</p> <p>&quot;The trade recovery strategy was launched in June last year and there were some quick things that were done, including the establishment of the Regional Comprehensive Economic Partnership, the upgrade of the China relationship was concluded and the signing of the Digital Economy Partnership Agreement. This is a first step in providing the trade architecture for businesses moving forward.&quot;</p> <p><b>So what can businesses do moving forward?</b></p> <p>Business owners have lots to think about and don't tend to sit around reading trade agreements so Sarah suggests those exporting now, or who plan to in future, should do their homework on the country they're exporting to as you can never be too prepared.</p> <p>&quot;The trade complexity is often in the country of jurisdiction and compliance and it's so important for businesses to do their homework. Look for opportunities, invest properly in due diligence… be prepared. And on the contractual side have an international contract - ideally one that favours your position because in tough times people litigate. And if you don't have a contract… well, I can't stress it enough but do your homework.&quot;</p> <p>These critical topics were among the many addressed by the panellists. Watch highlights from the discussion which touches on Free Trade Agreements, digitisation, protectionism and more in the video above.&nbsp;</p>