Nash Stuart: ASEAN-Australia-New Zealand Free Trade Area Bill — First Reading 
Nash Stuart: ASEAN-Australia-New Zealand Free Trade Area Bill — First Reading 
[Volume:653;Page:2644] 
STUART NASH (Labour) 
: 
 I rise to speak in support of the ASEAN-Australia-New Zealand Free Trade Area Bill for a number of reasons. First and foremost this bill implements a major agreement achieved by the last Labour Government. If I were wearing a hat I would doff it in respect to the Hon Phil Goff and the Rt Hon Helen Clark for the years of work they have done to arrive at such an important trade agreement. I also congratulate Minister Groser on being in the right position with the right skills to collect a pass 5 metres from the try line and to dive over the line under the posts. 
Labour and National tend to act in a bipartisan and cooperative way when it comes to international trade deals which is wonderful for the country. The passing of this bill will be the conversion of a Labour vision of greater international engagement for New Zealand’s companies—a great victory for New Zealand businesses. Let us just hope that the new Minister for Economic Development does not cut the staff and budget of New Zealand Trade and Enterprise. I hope that Minister Brownlee will please provide the businessmen and businesswomen of New Zealand with the certainty they now need in order to take advantage of this Labour bill. 
Of course I also support this bill because it opens up enormous opportunities for New Zealand businesses that are either currently engaged in export activity or thinking about entering export markets. As mentioned by other speakers the ASEAN market has over half a billion people and accounts for approximately $1.4 billion in global trade. It is a market that is slowly embracing consumerism with the growth of an aspirational middle class that is demanding the type of niche consumables and primary products that New Zealand excels at producing. Unfortunately the growth of this middle class has slowed considerably with the current economic crisis but this combined market had grown at a rate of 24 percent per year before the economic crisis hit. Hence it has still been a very important trading bloc over the past 3 years. A free-trade agreement will not only maintain but significantly help the sustainable growth of this important market as New Zealand exporters currently pay around $50 million in tariffs annually in trade with these nations. 
Export growth is the only way forward for New Zealand. Organisations like Federated Farmers have applauded the Hon Phil Goff for his work on this free-trade agreement. That organisation has said of the agreement: “Despite all the doom and gloom in the other sectors it strategically sets New Zealand up for the long haul and farmers appreciate that”. The Wellington Regional Chamber of Commerce chief executive has commented: “I would like to congratulate Phil Goff and his officials for their hard work and successful outcome.” and Alasdair Thompson from the Northern Employers and Manufacturers Association has said: “Overseas Trade Minister Phil Goff is to be congratulated for his work in expediting the ASEAN/CER FTA for New Zealand”. I think that all in this House would agree that the Hon Phil Goff was a very hard-working Minister of Trade and the previous quotes this bill and the Chinese free-trade agreement are testament to the fact that all New Zealanders and especially those engaged in any form of international trade are eternally grateful for the work of the Hon Phil Goff. 
Paul Quinn 
: You’re praising the wrong guy—he won’t be there much longer. 
STUART NASH 
: He will be Prime Minister; the member is dead right. 
We all agree that increasing the number of free-trade agreements is very much in the best interests of New Zealand going forward. I think that even our Minister over there would agree on that—oh he is not a Minister and probably never will be. I am confused; I could not see a Minister. 
Moana Mackey 
: He can’t even ask a patsy question; that’s about as bad as it gets. 
STUART NASH 
: Shh! 
In these times of uncertainty opening up global trade routes is even more important as we are currently seeing the return of traditional methods of protectionism through tariffs quotas and discriminatory rules. Pascal Lamy the director of the World Trade Organization—which was once headed up by former Labour Prime Minister Mike Moore—has said that “Trade is already a casualty of this recession”. There has been a huge drop in trade flows which of course creates unemployment. Some examples are of concern; I will give the House an example. The Indian trade Minister stated that “If there are protectionist measures India will be compelled to also take commensurate measures against those countries which will be good for no one.” As most of us will know we are in the early stages of investigating a free-trade agreement with India so these developments are of concern. Mr Lamy has said that he recognises the intense political pressures faced by Governments in this time of recession and looming unemployment. However the European Union’s trade commissioner Baroness Ashton has noted that legislators will need education on the benefits of free trade and the completion of the Doha round of world trade talks. 
In New Zealand however we must be very careful in promoting trade as the sole saviour of the New Zealand economy. Although the lower dollar is certainly helpful in increasing export returns and makes us more competitive at a time of falling commodity prices we are kidding ourselves if we believe that this recession is merely a global dip that will improve in the very near future. US households which account for nearly a quarter of global consumption—amazing is it not—have very much tightened their belts battened down the hatches and closed their wallets. McKinsey and Company a global management consultancy has suggested that American households will need to be frugal for at least 10 to 20 years. 
Reduced US consumption has serious global trade implications. For example Japan’s volume of customs-based exports fell by 45.6 percent in the year to March. This year the volume of world trade will probably fall for the first time since 1982 and the worth of net private sector capital flows to emerging markets is likely to fall to US$165 billion—that sounds like a lot but it is falling from a high of US$929 billion in 2007. The International Monetary Fund expects global output to shrink by 1.3 percent this year—its first fall in 60 years. As Rod Oram has commented globalisation is suffering its biggest reversal in the modern era. That is why free-trade agreements like this one are so important. But it is also why it is very very important that New Zealand businesses have support in place to help them take advantage of any opportunity that presents itself. 
We should consider that 96 percent of New Zealand businesses have 19 or fewer employees and they therefore by and large do not have the internal competencies to develop and grow from scratch the markets they have nor do they have the resources to employ full-time international marketing or market development managers. But these companies are the backbone of the New Zealand economy and if we are to develop a vision of our country achieving sustainable economic growth through export competencies and expertise then these companies need help to get a foot in the door in developing the skills required to compete successfully on the global stage especially in countries like the ASEAN ones. I am talking about Brunei Cambodia Indonesia Laos Malaysia Myanmar the Philippines Singapore Thailand and Viet Nam where the language is different the legal system is different the business culture is different and channels to market are different. Members get the picture: doing business in Saigon is not the same as doing business in Levin. 
As my colleague the Hon Peter Hodgson has already alluded to New Zealand Trade and Enterprise is this country’s international marketing and market development agency and I hope like hell that Minister Groser has spoken to Mr Brownlee and Mr English—we will not worry about Mr Key because apparently no one speaks to him—and asked these Ministers to please not cut— 
Paul Quinn 
: Oh is that supposed to be funny? 
STUART NASH 
: Oh someone is awake! I hope Minister Groser has asked these Ministers to please not cut staffing levels and resources from New Zealand Trade and Enterprise as they have from the Inland Revenue Department the Ministry of Justice the Tertiary Education Commission etc. etc. because in order to really take advantage of the opportunities presented to the New Zealand economy and New Zealand companies he needs on the ground more staff with experience who can help businesses optimise opportunities in this time of recession so that when things really take off we will be flying. I ask whether Mr Groser has done that. I ask Mr Brownlee whether he can promise that there will be no staffing cuts to New Zealand Trade and Enterprise. I ask Mr English to tell us that he will not take money from our international development agency. 
Overall this is a great bill but I just reiterate that we should hope that New Zealanders are in the right space to really take advantage of its opportunities. Thank you very much.