Nation: David Parker on trade, APEC and globalisation

Trade and Export Growth Minister David Parker: Inclusive Trade Action Group meets in Port Moresby

New Zealand, Chile and Canada today reaffirmed a commitment to work together to advance trade that benefits all their citizens.

Trade and Export Growth Minister David Parker joined Chilean Foreign Minister Roberto Ampuero and Canadian Deputy Minister for International Trade Tim Sargent at a meeting of the Inclusive Trade Action Group (ITAG) during APEC Leaders’ Week in Papua New Guinea.

Trade is crucial to our economies but so is ensuring that the benefits that come from trade are shared by all,” David Parker said.

“The New Zealand Government’s Trade for All agenda ensures that our trade policy delivers for all New Zealanders.

“The meeting of ITAG members recommitted us to this goal and set out some specific objectives to advance inclusive trade in 2019, including building support among our CPTPP partners, and in the WTO and APEC.”

It follows the three countries’ Joint Declaration on Fostering Progressive and Inclusive Trade issued at the signing of the CPTPP in March this year.

https://twitter.com/NewshubNationNZ/status/1063532842372673536

 

China versus US on trade protectionism

Donald Trump has clearly signalled a far more protectionist stance on trade. He is scrapping the Trans Pacific Partnership, and wants to renegotiate the North American Free Trade Agreement.

In his inauguration speech Trump said:

For many decades, we’ve enriched foreign industry at the expense of American industry; subsidized the armies of other countries while allowing for the very sad depletion of our military; we’ve defended other nation’s borders while refusing to defend our own; and spent trillions of dollars overseas while America’s infrastructure has fallen into disrepair and decay.

We’ve made other countries rich while the wealth, strength, and confidence of our country has disappeared over the horizon.

One by one, the factories shuttered and left our shores, with not even a thought about the millions upon millions of American workers left behind.

The wealth of our middle class has been ripped from their homes and then redistributed across the entire world.

But that is the past.

From this moment on, it’s going to be America First.

Every decision on trade, on taxes, on immigration, on foreign affairs, will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies, and destroying our jobs. Protection will lead to great prosperity and strength.

I will fight for you with every breath in my body — and I will never, ever let you down.

We will follow two simple rules: Buy American and hire American.

He followed that with “We will seek friendship and goodwill with the nations of the world” which may be a hard deal given his rhetoric on trade.

In contrast Chinese President Xi has recently talked in support of globalisation and against protectionism at the World Economic Forum in Davos.

“Protectionism is like locking yourself in a dark room, which would seem to escape wind and rain, but also block out the sunshine. No one is a winner in a trade war.”

NZ Herald: China’s Xi warns against trade war in defense of globalisation

Xi used his speech to support a global economic order that has helped fuel China’s almost four-decade economic boom.

The Chinese president called on the world’s business and political elite to address the problems of globalisation, without turning away from economic trends that have fueled decades of growth.

Leaders should address the excesses of growth, such as growing wealth gaps, while embracing new industries and innovation, he said.

“There is no point in blaming economic globalization for the world’s problems because that is simply not the case, and that will not help to solve the problems.”

“The history of mankind has shown us that problems are not to be feared. What should concern us is the refusal to face up to the problems.”

Globalisation has lifted a huge number of people out of poverty in places like China and India, but it has created problems as Xi acknowledges.

With the US under Trump clamping down on trade agreements this will force China to look for other markets, and gives China an opportunity to become more dominant around the world.

More introspection and trade protection may work for the US,  and the world needs a healthy US economy, but the rest of the world may also learn to get by more with less US trade and influence.

In Communist China now more pro free trade than the US David Farrar says:

What a funny world where we live where the leader of the Communist Party of China is more pro free trade than the leader of the Republican Party of the United States.

Sad!

It is a major turnaround, but i don’t know why one should be sad about it. When one door closes another opens – New Zealand has long experience with trying different trade doors.

It will be interesting to see how this pans out.