Dom Post on Free Trade
October 31st, 2009 at 11:00 am by David FarrarThe Dom Post editorial:
The gloom merchants and flat earthers who dispute the benefits of free trade agreements should examine a set of figures.
They are the figures showing the difference between New Zealand’s trade with China before the FTA between the two came into force in October 2008 and after it came into force. In the year to October 2008, exports to China totalled $2.2 billion. In the next year, they were $3.5b.
At a time when New Zealand is being buffeted by shockwaves from the global economic crisis, the deal has buffered jobs and boosted incomes. The political parties that voted against it – NZ First, the Greens and the Maori Party – should hang their heads in shame.
Can’t say it better than that. They are the enemies of our exporters!
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October 31st, 2009 at 11:13 am
NZ First, the Greens and the Maori Party – should hang their heads in shame.
I’ve got a better idea.
Just hang the Greens and the Maori Party – NZ first don’t count.
Vote:October 31st, 2009 at 11:28 am
Who would have thought? Capitalism and free trade DOES work…. whatever next?
Vote:October 31st, 2009 at 11:54 am
It certainly is good news if it has resulted in an improvement in our balance of payments or current account deficit. Once again only half the story is being disclosed what were the figures for imports from China. Truckiers delivering whole logs to our Ports have cause to be thankful, Millworkers of the several mills that have closed in the last few months have no such cause.
[DPF: A mentality of exports good, imports bad is seriously flawed. An increase in imports means consumers are getting better or cheaper or more variety of goods.
As it happens imports did not rise by as much as exports, but even if they had this does not mean that is a bad thing. Trade is not about winners and losers. It is about winners and winners as both seller and buyer get what they want]
Vote:October 31st, 2009 at 12:00 pm
Here’s a successful exporter who disagrees profoundly with the message of openness at any cost. He is making the point that successful countries manage their monetary and fiscal policy better than we do, in part because they manage the degree of openness they dispaly to the international economy:
http://www.pec.org.nz/wp-content/files/Lets-look-again-at-monetary-policy.pdf
Vote:October 31st, 2009 at 12:08 pm
backster, as i see it we are suffering a drive to continue our log exports because of the idiotic policy around the introduction and the timing of the ETS causing a continuation of clear felling of exotic forests to maximise the benefits under the ETS we are hell bent on leading the world with. As we implement FTA agreements with Asia in particular we should gain opportunities to export our wood in more processed and higher value forms but the idiotic socialistic headlong rush to “lead the world” with the goreolegy religious movement we will continue to go down this path to the alter of stupidity.
Vote:October 31st, 2009 at 12:28 pm
Backster
“It certainly is good news if it has resulted in an improvement in our balance of payments or current account deficit.”
It has.
Trade balance
Sept month 2009 Deficit $424m, 2008 $1252m
Sept Year 2009 Deficit $1533m, 2008 $5048m
China (Sept year)
imports 2009 $6411m, 2008 $6095m
exports 2009 $3528m, 2008 $2238m
http://www.stats.govt.nz/browse_for_stats/imports_and_exports/overseas_cargo/OverseasMerchandiseTrade_HOTPSep09.aspx
Vote:October 31st, 2009 at 1:36 pm
How many Maori farmers, factory workers, forestry workers, fisheries workers etc have jobs because of these new free trade agreements?
How many workers in multinational companies have been laid off in NZ because of Obummer’s protectionism?
To the Maori Party and the Greens, you either have no fucking clue about economics (most likely) or you are just idiotic hypocrites (also likely)
Vote:October 31st, 2009 at 10:11 pm
Backster,
As I understand it, a lot of the tarrifs on processed wood products remain with China, despite the FTA. This is due to the fact that as part of China’s WTO commitments, it cannot give preferential treatment to individual countries on wood products.
Wood products remained one of the most protected industrial products after the Uraguay round. One issue in particular is the very high effective tariff rates on the value-add component of wood products.
The unfortunate thing for New Zealand’s wood product industry is not free-trade but the lack of it.
Vote:November 2nd, 2009 at 12:13 pm
Are these trade figures or just trade in goods figures? If the former, they are only telling a small part of the story.Would also be good to know where the profits on these traded goods ended up.
I’ve been seeing figures telling me how much money “we” are making as a result of trade agreement s for decades, but they don’t mean much in the real world.
Vote: