Another free trade agreement
March 3rd, 2009 at 4:24 pm by David FarrarJohn Key and the President of Korea have announced they will begin work on a Korea – New Zealand Free Trade Agreement. This is excellent – Korea is a major trading partner.
This is no surprise, as work started on this last year with an economic study into the benefits of having an FTA. But good to see NZ making such good progress with Asian countries on trade issues.
The economies that are scaring me are the EU and the US. The EU is under massive pressure with tensions between old and new Europe. And some countries may end up being forced out of the Euro. And the US just looks set to drown in a mountain of debt.
We may turn out to be grateful of our location down under.
Related posts:
- The US-Israel Free Trade Agreement
- Free Trade prospects
- Good news for free trade fans
- A huge free trade region
March 3rd, 2009 at 4:50 pm
So let me get this right -
We get to export some more jobs and you’re happy?
What’s left for Korea to sell us that we don’t already buy?
Or do you think we need a whole lot more dirty little cafes staffed by a bunch of people that we’d never let in to the country under the current rules?
Vote:March 3rd, 2009 at 5:01 pm
They make great lager the Koreans. Anything that makes good beer a bit cheaper is a worthy enterprise in my book.
In Auckland, you can get a good meal for about $10 + at any of those Korean restaurants over the road from Myers park and the White House. Nothing wrong with that either IMHO!
Vote:March 3rd, 2009 at 5:16 pm
I have to agree with Jack again – Free trade shouldn’t mean free immigration. With all these FTA no wonder there are so many $2 Shops, Coin Save and $1,2,3 Shops around.
Vote:March 3rd, 2009 at 5:29 pm
Being part of a free trade agreement puts our country in a better position to than otherwise would be the case. Our goods will be cheaper in their country than similar goods from a country outside of the agreement.
Also, who consumes more of what New Zealand produces? A Korean living in Korea, or a Korean living in New Zealand?
Vote:March 3rd, 2009 at 6:35 pm
There has just been a newly signed round of advances in the ASEAN FTA too, DPF, in Thailand.
I hope that those nations that stick to Free Trade show up, in the way of results, those nations that do not in the latest outbreaks of xenophobia.
And I am all for immigration into NZ of anyone who will work and bring enterprise, and leaves behind the features of their own culture that have made their country less desirable to live in than NZ. Again, nations that have gone down the PC multiculturalism path will show up as suffering for it, if they are not obviously suffering already.
Ratbiter/RRM at 5.01, once again you surprise me with a comment that I agree with completely. I welcome exotic restaurants and music festivals.
Vote:March 3rd, 2009 at 7:19 pm
Jack and Brian appear to be confusing free trade with immigration – they are two different things – there is no difference for the rules to get in to NZ whether you are Korean, British, Russian or American.
Free trade (an unusual concept for socialist governments) is about removal of barriers to sell in to each others’ economy – NZ is pretty open so we will benefit when other economies are open to us.
Vote:March 3rd, 2009 at 7:22 pm
Kimble (1388) Vote: 3 1 Says:
March 3rd, 2009 at 5:29 pm
Being part of a free trade agreement puts our country in a better position to than otherwise would be the case. Our goods will be cheaper in their country than similar goods from a country outside of the agreement.
I am not sure that this is so.
Will a bottle of NZ white wine be chaeaper than a bottle of Chilean white? You assume that all things are equal once a FTA is signed, and yet there are a greta many variables that make the final price of any product.
Ratbiter (682) Vote: 6 0 Says:
March 3rd, 2009 at 5:01 pm
They make great lager the Koreans. Anything that makes good beer a bit cheaper is a worthy enterprise in my book.
Come on, lager is to beer as Starbucks is to coffee. The watery, tastless cousin of true beers – bitters and pale ales.
Vote:March 3rd, 2009 at 7:29 pm
“Come on, lager is to beer as Starbucks is to coffee. The watery, tastless cousin of true beers – bitters and pale ales”
Fucking hell!..I can just imagine it, flat caps and Yorkshire accents down “t workin mins cloob”
Vote:March 3rd, 2009 at 7:41 pm
And what’s wrong wit t workin mens cloob? Just cuz you dun work and cant ged in.
Vote:March 3rd, 2009 at 7:53 pm
tis nowt a case of whats run’g abut t workin mins cloob, it moore a case uf whit’s reet abut em, all full uf moanink layba types, tis enuff t make a min greet inta ees pint.
Vote:March 3rd, 2009 at 7:55 pm
Jack
How exactly are we ‘exporting our jobs’ to Korea by signing a free trade agreement with them? Will they suddenly start churning out the stuff we are good at producing? Or is NZ on the verge of launching into the mobile phone/ vehicle/ ship-building business, and this will stop us?
Do you have an actual economic argument here, or do you just not like contact with people whose skin is a different colour to yours?
Vote:March 3rd, 2009 at 7:59 pm
slijmbal> Jack and Brian appear to be confusing free trade with immigration – they are two different things
If we’re going to have free immigration for Koreans, then I’d prefer it was restricted to SOUTH Koreans. I don’t want thousands of badly dressed foreigners marching around Wellington as if they’re in some military parade, and I certainly don’t want to listen to them banging on about the Great Leader all the time.
Also, North Korean restaurants are likely to be pretty sad affairs unless you enjoy eating cooked bark. Only six or seven percent of people here are Greens, so the restaurants probably won’t be financially viable.
Vote:March 3rd, 2009 at 8:06 pm
“If we’re going to have free immigration for Koreans, then I’d prefer it was restricted to SOUTH Koreans.”
davidp – Given that they are two completely separate countries and one of them is still technically at war with the west, I doubt there will be much danger of that!
Vote:March 3rd, 2009 at 8:16 pm
davidp – immigration is completely and utterly nothing to do with trade – we are not talking about free immigration for Koreans – read my post. We are talking about trade – goods not people. Immigration posting is a red herring.
Immigration rules are not affected by Free trade – Free trade rules are not affected by immigration rules – they are two separate things.
I’m not sure I can state the same facts in any more different ways.
Vote:March 3rd, 2009 at 8:37 pm
Didn’t we have to allow around 2k Chinese into the country when we signed an FTA with them?
“And I am all for immigration into NZ of anyone who will work and bring enterprise, and leaves behind the features of their own culture that have made their country less desirable to live in than NZ. Again, nations that have gone down the PC multiculturalism path will show up as suffering for it, if they are not obviously suffering already.”
I agree with this PhillBest. Multiculturalism for NZ/Australia and probably all of Europe is inevitable I think. Let’s just hope the immigrants we get are productive and contribute positively to NZ, and not to the degradation of it *cough* South Auckland *cough*.
Vote:March 3rd, 2009 at 8:46 pm
I have always been grateful of our location downunder, this is home. FANTASTIC even with the lefties.
Vote:I love this place. Why wouldn’t you?
I guess Locke, Bradford etc have a different slant, seein as they always want to slag us, WHY??????????
Bloody communists.
March 3rd, 2009 at 9:09 pm
” am not sure that this is so.
Will a bottle of NZ white wine be chaeaper than a bottle of Chilean white? You assume that all things are equal once a FTA is signed, and yet there are a greta many variables that make the final price of any product.”
What part of “similar goods” was difficult to understand? Even if they arent equivalent, the NZ wine would be cheaper than it was, making a substitute less appealing even if it is cheaper overall.
And free trade does have something to do with immigration. Here I googled this for you:
http://www.workpermit.com/news/2008-04-11/new-zealand/nz-china-free-trade-agreement-simplifies-immigration.htm
Vote:March 3rd, 2009 at 9:38 pm
Immigration is the last step of globalisation. Once products and money flow completely freely then the last step will be the people.
This will be the death of some nations and perhaps the creation of others as people will no longer need a loyalty to such entities as things called NZ or Australia but would move to the places that are of benefit themselves. This would be the ultimate in free-markets and could lead to global democracy.
or it will turn to crap as people pull together along racial lines and the old rulers cling to their power
as always it will be interesting.
Vote:March 3rd, 2009 at 9:55 pm
I was referring to all these shops full of plastic crap made in China, Thailand and soon Korea.
Vote:March 3rd, 2009 at 10:10 pm
OK boys – immigration
I employ Chinese immigrants in a very highly skilled part of the market – the rule changes did not make it easier for low or high skilled Chinese immgrants to get in to NZ – I checked as it might make it easier for my business – the changes were cosmetic.
but …….. in all almost all cases an FTA is not related to immigration – get it.
The majority of immigrants want to become part of their future ie NZ – they wish to keep some of their own culture but, except for the radical t**ts, see themselves as moving too something better.
In general, immigrants earn more, claim less benefits (lots of them are amazed we have benefits), do less crime, have better educated kids etc.
As an immigrant I feel comfortable saying that the majority are grateful and appreciate the opportunity – I except the radicals of course.
OZ did some stats measurements and almost every single ethnic immigrant group had better social stats than home grown ozzies – NZ will almost certainly be the same. Kiwis were the best immigrants to OZ – earned the most etc
Sorry – pushed a button.
Vote:March 4th, 2009 at 12:57 am
Jack
You have gone very quiet. Not willing to dazzle us with your economic logic?
Brian Smaller
Tarrifs on cheap plastic goods from Korea, or anywhere else, are zero. An FTA with Korea will make no difference at all. If you don’t like the stuff, don’t buy it.
Slijmbal
Well said, sir.
As far as I recall, the balance of trade between NZ and Korea is heavily in our favour. Our tarrifs on Korean imports are essentially zero, while some of our ag exports face heavy barriers at the Korean end. NZ has nothing to lose, and a lot to gain from a deal. I only hope we get something signed before the Koreans come to this conclusion too!
Vote:March 4th, 2009 at 1:25 am
I guess a FTA with Guinea-Bissau will have to wait a while.
Vote:March 4th, 2009 at 8:05 am
I’m astonished that anyone living in NZ could have a problem with immigration. We are all immigrants or decendants of pretty recent immigrants. The ability of young kiwis in particular to move freely to other countries for their “OE” is a huge plus for this country and we are enriched in a variety of ways by the diversity migration has bought us. Of course not every migrant story is a good one but in the main people who migrate are of superior stock than those that dont.
Vote:March 4th, 2009 at 8:06 am
Typically we dont need FTAs with very poor nations because they dont buy anything we make and we already let their meagre exports in duty free under various concessions. Korea is the 13th largest economy in the world and one of our largest trade partners. Not a place I would choose to live but nice people.
Vote:March 4th, 2009 at 10:07 am
There are a few comments about ‘culture’ in the thread…
Vote:March 4th, 2009 at 10:18 am
“There are a few comments about ‘culture’ in the thread…”
I assumed that was just code for “race”
Vote:March 4th, 2009 at 11:11 am
“I assumed that was just code for “race”” – KiwiGreg
That is probably you applying your own biases. When I talk about culture it is always distinct from race. There are superior cultures, but not superior races.
What does the fact you confuse discussions about culture with race say about you?
“but …….. in all almost all cases an FTA is not related to immigration – get it.” – slijmbal
Ok, looks like your anecdote trumps my objective facts. Free trade is about the movement of resources INCLUDING labour. A free trade agreement doesnt have to address immigration, but it can. And a lot do:
http://www.dfat.gov.au/trade/negotiations/aust-thai/tafta_chapter_10.html
Free trade is related to immigration and your narrow experience does nothing to prove otherwise.
http://www.dfat.gov.au/trade/fta/asean/aanzfta/chapters/chapter09.html
A trade agreement can even help in the prevention of illegal immigration.
http://ec.europa.eu/external_relations/morocco/association_agreement/index_en.htm
So to say that free trade has nothing to do with immigration is simply wrong.
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