Wednesday, 18 November 2015 11:56

Massive market available for exporters if they can perform

Written by 
Dr Eldrede Kahiya. Photo: David Hollander. Dr Eldrede Kahiya. Photo: David Hollander.

A Lincoln University expert says NZ exporters will have to be on their game to reap the benefits of a huge trade access deal that has gone under the radar.

Faculty of Agribusiness and Commerce lecturer, Dr Eldrede Kahiya, says while the Trans Pacific Partnership (TPP) has dominated media recently, an equally significant trade-related development has gone largely unnoticed.

In August, New Zealand became part of the Global Procurement Agreement (GPA). Situated within the framework of the World Trade Organisation, the GPA is designed to make it easier to compete for foreign government contracts.

He says this opens up a $2.65 trillion market for New Zealand exporters willing, and able, to exploit the opportunities it presents.

However, New Zealand exporters really need to lift their game and neutralise disadvantages they face, he says, such as the sometimes difficult process involved with accessing international markets, our smaller scale and lesser market presence, higher costs, and an innate favouritism towards domestic suppliers.

"Selling to an overseas government is not unlike playing on an unpredictable wicket which favours the home team," he says.

"Given that New Zealand is aiming to grow exports to 40 per cent of the GDP by 2025, the importance of the GPA to the Business Growth Agenda cannot be overemphasised."

The GPA presents opportunities in areas of public spending such as defence, health, education, customs and border control, aviation, transportation infrastructure, postal services, and information technology.

Kahiya says tendering and evaluation processes will be much more transparent to bidders, giving New Zealand exporters a fair chance to win foreign government business, however, success depends fundamentally on understanding and adjusting to the unique challenges of selling to foreign governments.

» Connect with Rural News

More like this

US exports soar

US dairy exporters keep finding new markets for cheese and dairy ingredients despite facing trade tensions.

NZ concerns over US-Japan FTA

The US-JAPAN trade deal might impact on New Zealand beef, cheese and other exports to Japan and is almost certainly in breach of World Trade Organisation (WTO) rules, says a trade expert.

Telling NZ’s agritech story offshore

The New Zealand Agritech Story launched last week by Trade and Enterprise will make a key difference for export companies in the $1.5 billion sector, says an industry leader.

» The RNG Weather Report


A big future ahead

Age hasn't been a barrier for young vegetable grower of the year Austin Singh Purewal.


Sheep and beef doing its bit

No increase in stock numbers in the sheep and beef sector is anticipated as the industry moves towards carbon neutrality, says Beef + Lamb NZ head of nutrition Fiona Windle.

Fonterra lifts milk price

Good news for Fonterra farmers – the co-op is increasing its 2019-20 forecast farmgate milk price by 30c/kgMS.

» Connect with Rural News

» Connect with Rural News

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Chipping in

The Hound was intrigued to read an article recently, on the Newsroom website, that shows that Education Minister Chris ‘Chippy’…

I'm alright

This old mutt has been contacted by many concerned individuals about the role the former Synlait boss John Penno is…


» Connect with Rural News