Wednesday, 04 July 2018 09:55

Potential risk to NZ’s primary exports

Written by 
Mike Petersen. Mike Petersen.

Mike Petersen says the potential US-China trade war poses long term threats for NZ products.

If there is a tariff on a product from the US into China, you’d have to question where that product will go, he says. It could displace NZ product in other parts of the world or it could find its way to NZ.

“The whole displacement effect could have a big effect on NZ as a country that relies very much on exporting and access to markets,” Petersen says.

“While it is not an issue directly impacting NZ, the spillover effects could be significant. They are the ones we have got to watch very closely.”

Petersen says several people suggest NZ may be advantaged by a US-China trade war.

“There may be a short term opportunity for some products into these markets as a result of the tariffs but the long term risk of it impacting on NZ products is far greater,” he says.

In some ways NZ needs to keep its head down; it does not need to join sides on any of this, Petersen says. 

“We need to keep our head down – keep calm and carry on. But equally we need to make sure our voice is heard and that people understand the risks of the trade war that is looking increasingly likely.”

 

More like this

US farmers don’t want a repeat run

With the US dairy industry now it in its fifth year of low prices and third year of trade wounds, president and CEO of the National Milk Producers Federation in the US, Jim Mulhern looks at what could come next.

 
 

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Quota watch

The Hound understands that Mike Petersen’s time as NZ agriculture’s special trade envoy will soon end.

What a jerk

Your old mate notes that serial whinger Mike Joy continues to put the boot into the farming sector.

» Connect with Rural News