Tisch Lindsay: Tariff (New Zealand - Thailand Closer Economic Partnership) Bill — First Reading 
Tisch Lindsay: Tariff (New Zealand - Thailand Closer Economic Partnership) Bill — First Reading 
[Volume:625;Page:20617] 
LINDSAY TISCH (National—Piako) 
: 
 As my learned colleague has just said National supports the introduction of the bill. John Carter has wide experience in this field as does the Hon Dr Lockwood Smith who as a former trade Minister understands the protocols involved in such an important part of New Zealand’s economy. Although we say we will support the bill we do have major reservations. My colleagues have said this agreement is low quality but at least it is a starting point for New Zealand. 
Dr the Hon Lockwood Smith 
: It’s the best that Labour can do! 
LINDSAY TISCH 
: After 5 years that is the best it could do. New Zealand is in the international marketplace. National supports free trade. We are proactive in supporting free trade. It is important for the economy because we get a win-win situation. It is not only good for our producers but also good for the country that we are dealing with. 
I note the point made by the Hon Ken Shirley that when trade is freed up standards rise in the country we deal with and stability and security issues do not become a concern. Increasingly we see that happening throughout the Pacific where security has become a major issue. If New Zealand is able to enter into an agreement with Thailand that is of benefit not only to New Zealand but also to the security and stability of that part of the region. 
Last year I was fortunate to visit Beijing for the Asia Pacific Parliamentary Forum and talk specifically about trade and security in the Pacific. Of the 23 countries that border the Pacific 20 were represented. The progress being made by those countries is absolutely outstanding. It was my third visit to China and the progress I have seen there is amazing. If members have a chance to visit they will see what China has been able to achieve. It has a population of 1.3 billion and 100 million enjoy living standards equal to those of New Zealand. A lot of progress has been made but 100 million is only a drop in the bucket. The Olympic Games will be held in China and it wants to move into trading arrangements. So an agreement with China is something that New Zealand is pushing for at this time and it is something that should be encouraged. 
Our isolation can be a competitive advantage in terms of agriculture and other export areas. But there will be some losers in our economy. It has been identified that some parts of the manufacturing sector especially footwear and clothing may well be disadvantaged by this agreement. But we always have to build on our strengths and as the economies of the world start to improve their living standards and buy more goods and services from us we achieve a win-win situation. 
My colleague Dr Lockwood Smith said that unfortunately this closer economic partnership agreement with Thailand does not cover a very important service—that is consultancy. We have major consultancy services and our expertise in certain fields is in demand around the world—in particular in the Asia-Pacific region. Our agricultural consultants people in the World Bank—those sorts of consultants—could be providing that sort of service. Unfortunately that is not in the agreement initially. But the bill says it will be looked at over the next 3 years whatever that may mean. 
National has identified that this is a low-quality tariff agreement. It is low quality but there are some advantages. Currently only 4 percent of our products are duty-free and that will rise to 52 percent from 1 July. Certainly that is an advantage and National welcomes that opportunity. But we make the point about some other primary industries such as avocados and kiwifruit and the qualification that will be put on them. In relation to kiwifruit and especially Zespri or Chinese gooseberries I just mention that in the hotel where I stayed in Beijing the menu for breakfast and other meals had kiwifruit prominently displayed as was New Zealand butter. It is always good to see our products represented. However I reiterate the point that in relation to some of our horticultural products be they kiwifruit cherries persimmons or avocados a major qualification will be put on them. 
So are we or are we not going to have free trade? Because as soon as one puts a “but” into the equation or a qualification on it one has to weigh up the extra costs involved and the compliance costs involved in being able to meet those standards. Either we have free trade or we do not. That is one of the areas that I am sure the select committee will be looking at as this bill is progressed. If there is no competitive advantage no market advantage for us then at the end of the day it will not be worth doing. We have said right along that we support and will continue to support free-trade agreements that will allow New Zealand’s living standards to rise. We have to export. We are an exporting country. If we do not sell products and services then we cannot raise the living standards of New Zealanders. The win-win situation is that as other countries lift their living standards they will buy more products in larger volumes and at higher prices. That helps us all. But also if we consider it beyond that we see that the security and stability of these countries improves markedly and that is to New Zealand’s advantage in the bigger scheme of things. 
So National is supporting the bill. We have some reservations some serious points that need to be covered in the select committee but we are happy to support the bill through to the select committee.