Q+A today – business and trade

On Q+A this morning:

Why is business feeling so gloomy? Surveys show business confidence has been persistently low since the Labour led Government took office. Corin Dann talks to Finance Minister Grant Robertson.

Plus, what could an NZ-EU Free Trade Agreement mean for you? And will European farmers give up some of the subsidies that make trade harder for our food producers? European Trade Commissioner Cecilia Malmstrom joins us.

EU to start trade talks with New Zealand, Australia

The European Union has announced it will open trade talks with new Zealand and Australia in June.

Reuters: EU agrees to start Australia, New Zealand trade talks

European Union countries cleared the way on Tuesday for the bloc to begin free trade talks with Australia and New Zealand in a drive to forge new alliances as trade tensions with the United States increase.

The European Commission, which negotiates on behalf of the 28 EU members, said EU trade chief Cecilia Malmstrom would visit both countries to open talks in June before negotiators convene in Brussels in July for a first round of discussions.

The EU forecasts that ambitious and comprehensive agreements could boost its exports to the two countries by a third in the long term, although there are caveats about opening up EU markets to farm produce such as butter and beef.

The bloc is the third largest trade partner of both Australia and New Zealand.

Trade Minister David Parker: EU and New Zealand to start free trade talks

A free trade deal between New Zealand and the European Union (EU) has taken a major step forward with the announcement overnight that the EU’s Foreign Affairs Council has approved its negotiating mandate.

Trade and Export Growth Minister David Parker has welcomed the news, saying it opens the way for a free trade deal with one of the largest economies in the world that will boost jobs and incomes.

“Credit must go to Prime Minister Jacinda Ardern whose strong advocacy for New Zealand’s interests during her recent trip to Europe helped tip the balance,” David Parker said.

“It is also an endorsement of our strong backing for the talks as the next priority on our extensive free trade agenda, that includes the CPTPP, the Pacific Alliance and RCEP.

“These negotiations offer significant economic gains for New Zealand and the EU. They are an example of like-minded countries working together at a time when the world faces a rising tide of protectionism,” David Parker said.

“The EU is our third largest trading partner, with two-way trade worth more than $20 billion. Even excluding the UK, our trade with the EU is worth about $16 billion annually.

“Our recently-announced inclusive and progressive Trade for All agenda aims to benefit all citizens – an approach in line with the EU.

“At the start of negotiations, we’ll be releasing a package of information outlining our negotiating priorities for this agreement and how we will be engaging with New Zealanders as negotiations progress,” David Parker said.

A good step in the right direction with the EU on trade, but with 28 countries involved it will take some time to negotiate and approve, if successful.