Chamber Welcomes Prime Minister’s Export Vision

Chamber Welcomes Prime Minister’s Export Vision but what about Services?

The Wellington Employers' Chamber of Commerce supports Prime Minister Key’s goal of increasing trade with China but thinks he has understated what is achievable especially when services sector exports are included.

Prime Minister Key has said he wants to double New Zealand’s two-way trade with China from $10 billion to $20 billion within five years.

“We support this vision and we think it is achievable,” said Chamber spokesman Charles Finny.

“It amounts to less than 15% growth per annum which is much less than our annual growth in exports to China since the Free Trade Agreement was signed. It is not much more than the levels of annual economic growth China has been experiencing in recent years.

“However, the figures quoted are for merchandise goods trade only. New Zealand has a growing trade in services with China which have even more growth potential and must not be overlooked.

“China is a major market for our export education and tourism. But there is even more potential to double these exports than there is our export of goods to China.

“Wellington businesses can play a major role here. The services sector is particularly important to the Wellington economy. 90% of our regional GDP is generated by services activity - much higher than the national average.

“The export of services is an area of untapped potential for Wellington and will be instrumental in the growth of the regional economy looking ahead.

“Services exports will also play an important role in pulling New Zealand through the recession if commodity prices and merchandise exports struggle.

“The Chamber has been pushing for the services sector to become more prominent in the government’s policy agenda particularly in the negotiation of free trade agreements and in the WTO.

In this regard we were particularly happy with the service coverage in the China New Zealand FTA but the onus is on businesses to take advantage of it,” Mr Finny concluded.

ENDS

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