11. Question No. 11—Trade and Export GrowthPRIYANCA RADHAKRISHNAN (Labour) to the Minister for Trade and Export GrowthQuestion No. 11—Trade and Export Growth11. PRIYANCA RADHAKRISHNAN (Labour) to the Minister for Trade and Export Growth: What progress has the Government made on improving trade access for exporters? Hon DAVID PARKER (Minister for Trade and Export Growth): I'm pleased to advise the House that very very substantial progress has been made on improving trade access in the last two years. The latest example of many is the conclusion of the upgrade to the New Zealand – China Free Trade Agreement (FTA) modernising one of our most important and successful trade agreements which was of course landed in 2008 by the Hon Phil Goff. This ensures that New Zealand will once again have the best trade access of any developed country with China. This and many other economic changes like the R & D tax credits are why exports have boomed under this Government notwithstanding international headwinds which are in part caused by rising protectionism in some quarters. Priyanca Radhakrishnan: What are the major benefits of the upgrade to exporters? Hon DAVID PARKER: The upgrade further secures our trading relationship with our largest trade partner China and of course it updates it to reflect changes in patterns of trade since 2008. With two-way trade at a record $32 billion under this Government the upgrade will reduce compliance costs saving exporters millions of dollars a year. It also introduces strong commitments on both sides to promote environmental protections. It improves access for wood and paper lines that currently still have tariffs. We recognise the importance of open and inclusive trade in the current global climate and of course we're continuing to work hard in Europe elsewhere in Asia and the US to open up more opportunities to increase exports jobs and New Zealanders' incomes. Priyanca Radhakrishnan: What reports has the Minister received regarding the China FTA upgrade? Hon DAVID PARKER: There's been praise left right and centre for the Government's trade success. The wood and paper sector and the dairy and seafood sectors are all pleased with what we've achieved. The Employers and Manufacturers Association said the China upgrade and progress on the Regional Comprehensive Economic Partnership were—and I quote—an historical 24 hours for NZ trade". The International Business Forum said the deal was ideal in the current trade environment. Several independent commentators have called the upgrade a big win for the Prime Minister. I also noted with interest a comment from the New Zealand Herald's political editor that a simple congratulation from National to the Government would be justified—it's never too late. Hon Todd McClay: Can the Minister confirm that discussions with the European Union over post-Brexit arrangements for the longstanding tariff rate quotas (TRQs) for New Zealand butter and lamb exports have stalled and given our exporters are now facing trade access uncertainty over those TRQs will he commit to taking the EU to the World Trade Organization (WTO) disputes panel should they not meet their longstanding obligation to New Zealand exporters? Hon DAVID PARKER: I can't confirm that. What I can confirm is that in the China FTA we didn't seek a tariff reduction for sour grapes. There's not much international demand for sour grapes and that member's party's already got that market covered. Rt Hon Winston Peters: Can I ask the Minister for trade does that mean that he thinks threatening to go to the WTO is not a brilliant negotiating strategy for New Zealand? Hon DAVID PARKER: It does and it's an unnecessary one at this stage because of course the tariff rate quota consequences are a consequence of Brexit which remains uncertain. Hon Todd McClay: Does the Minister therefore think holding a protest sign whilst in Opposition helps New Zealanders—SPEAKER: Order! Hon Simon Bridges: Oh but that stuff's OK? SPEAKER: The fact that I learnt from social media that the Leader of the Opposition wants to speak this afternoon is what's keeping him in the House at the moment. That question was out of order at the start. I think the member's team has plenty of spares. If he wants to have another go it will be another supplementary. Hon Gerry Brownlee: I raise a point of order Mr Speaker. You gave us quite a firm indication yesterday that where there was a question asked that had a particular political aspect to it we could expect that there would be some flick back. Now there was no political aspect to the question asked to Mr Parker when he came up with his sour grapes comment but apparently when we now ask a question we are still subject to a higher test. Why is that? SPEAKER: Well I'm going to ask the member to rephrase his question. Hon Gerry Brownlee: Or perhaps put simply was it reasonable for the Minister to answer a question in the House by accusing the questioner of having sour grapes? SPEAKER: It probably didn't help the tone but my view is that the initial question itself made some assumptions about the position which—I think there were two parts to the question that if I'd acted strictly would have been ruled out. But as the member knows I'm trying to let things flow slightly better. Further supplementary from—Hon Todd McClay: No. I raise a point of order Mr Speaker. I wonder if you could help me exactly as to why that was out of order because I didn't actually infer that any member of this House had and I brought it back to the original question that was asked of the Minister about access. So I asked if it was his view—SPEAKER: Yes. And the member can resume his seat. If he just reflects a little bit about the areas that this Minister has responsibility for he in the first part of his question—in so far as he'd got—had identified very clearly something for which this Minister does not have ministerial responsibility. Hon Todd McClay: Can he confirm that the Government has made no progress in removing punitive additional tariffs placed on New Zealand steel and aluminium exports by the United States Government and will he consider joining other countries in considering taking the US to the WTO disputes panel if they don't meet their fair obligation to New Zealand exporters whose trade access has been restricted? Hon DAVID PARKER: I can confirm that the tariffs that were imposed by the United States on New Zealand steel and aluminium remain in place. It is fair to say that despite our best efforts we have not been able to remove them. Whilst it has little economic effect on the New Zealand economy it is of course very important to the steel and aluminium industries and we haven't given up on those efforts. Hon Todd McClay: Will the Government halt its plans for taxes on digital services if it is to progress a free-trade agreement with the United States given the US has said to France and other countries that they will not negotiate FTAs or honour them should these taxes on digital services be put in place? SPEAKER: Order! I'm going to allow the question but I'm going to repeat my request from I think earlier this week or last week that members have a seminar to work out what is in order in a supplementary question. Hon DAVID PARKER: That's not a matter of my responsibility."