Comments on: And another FTA – Hong Kong

By: Jack5

Jack5 — Sun, 15 Nov 2009 07:31:27 +0000

Re MaxXP at 8.52…. Small doesn’t spell out precisely the mechanisms the Hong Kong FTA will help NZ services access Hong Kong.

MFAT (link below) elaborates only:”…commitments are being sought in the areas of services, investment, and government procurement…”

If “Datacom and the hi-tech and education sectors” can’t score in Hong Kong now, they will after this deal? Yeah right.

An FTA with a free port which continues to be perhaps the most open slice of capitalism that ever existed, remains a bit of a hollow deal.

The MFAT link:

http://www.mfat.govt.nz/Trade-and-Economic-Relations/Trade-Agreements/Hong-Kong/index.php

By: malcolm

malcolm — Sun, 15 Nov 2009 06:26:23 +0000

Yeah it could be a case of that is just the way dairy farming has evolved in the US. Corn certainly underpins US farming. However NZ Farming Systems Uruguay is a cautionary tale for anyone who goes overseas and thinks “They’re doing this all wrong. Fools. I’ll show them the right way”.

Still, perhaps Eric Watson has a different criteria for what constitutes a successful business idea; plenty of OPM (Other Peoples Money), and get out quick with loads of cash while the hype is still flowing.

I’m always interested by how things are done differently the world over, but the locals assume their way is the best and most obvious. Just look at the way houses are sold in the UK. Madness.

By: stephen

stephen — Sun, 15 Nov 2009 00:28:18 +0000

yeah heard about that. one wonders why they weren’t just doing it that way in the first place – corn subsidies the culprit perhaps?

By: malcolm

malcolm — Sun, 15 Nov 2009 00:11:10 +0000

Presumably that only means agriculture is included for discussion. I doubt the powerful US farming lobby will let NZ’s low-cost farmers and dairy farmers have open access to their markets.

Ironically Eric Watson (Hanover Finance) is investing big in a US-based version of NZ pastoral dairy farming. Sounds a little too much like the troubled NZ Farming Systems Uruguay. His idea is that US dairy farmers have all got it wrong and could make more money doing it the NZ way.

By: stephen

stephen — Sat, 14 Nov 2009 23:33:58 +0000

FWIW: Agriculture, a sticking point in the past, is now included.
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10609411

By: malcolm

malcolm — Sat, 14 Nov 2009 22:03:09 +0000

And we’d likely get stiffed with some very US-centric copyright and DRM clauses.

By: bchapman

bchapman — Sat, 14 Nov 2009 21:20:41 +0000

If a FTA with the US doesn’t include dairy and beef, it will be a waste of time for NZ. How much do you want to bet, there will be ’special clauses’ for these products.

Might want to ask Australian sugar growers about the ’special exemptions’ to support US armers than can be added.

By: mavxp

mavxp — Sat, 14 Nov 2009 19:52:45 +0000

Jack, how about you read the Dom Post article?

/quote
“It’s largely based on the services sector … and will be a welcome addition for New Zealand companies looking to grow and expand into the services sector in Hong Kong,” Mr Key said.

It would particularly benefit computer firms like Datacom and the hi-tech and education sectors.
/unquote

By: Jack5

Jack5 — Sat, 14 Nov 2009 08:20:39 +0000

Agree that FTAs are important for NZ, given we are such a tiny trading nation, and regret Clark and the lefties probably are the reason we haven’t already got one with potentially the biggest market of all, USA.

However, can’t see any benefits from an FTA with Hong Kong, given it’s a free port, with no tariffs.

Also I query statement in Kiwiblog a few weeks back about quick benefits from the NZ-China FTA. The upsurge in NZ exports to China was probably influenced much more by consumer demand for foreign dairy products after the Sanlu scandal than by the China-NZ FTA. How paradoxical given Fonterra’s link with Sanlu.

And here’s a problem the China FTA won’t help with. Russia, the biggest forest products supplier to China, is moving to ban log exports. Customers will have to buy sawn timber etc. In NZ we have social havoc in the North Island timber towns with mills closing because of world recession and the high kiwi dollar. What can be done to gain some social benefit from processed wood products? Freight savings on processed product should counter higher NZ wages.

A second question on the China FTA. China holds its currency low through the level it sets the yuan-USD exchange rate. Can you have a true FTA when one of the parties has a floating currency and the other sets its exchange rate?

By: georgedarroch

georgedarroch — Sat, 14 Nov 2009 08:16:31 +0000

Indonesia being NZ’s 7th largest export destination.

By: georgedarroch

georgedarroch — Sat, 14 Nov 2009 08:09:13 +0000

There are also stalled negotiations for an agreement with Indonesia separately to ASEAN. New Zealand’s offers were seen as tokenistic by Indonesian negotiators.

By: Johnboy

Johnboy — Sat, 14 Nov 2009 07:23:05 +0000

I shall leave the comparison of the relative pleasures of the pseudo/real 20cm demerit strapon’s to those of the faith who have very likely experienced them in real time KK.

By: Kris K

Kris K — Sat, 14 Nov 2009 07:15:44 +0000

… and how would the ‘Demerit Virgin’ have any idea that a 20 demerit strapon even exists?
Methinks he fibbeth, and in fact has personal, first hand experience of said device.

By: Johnboy

Johnboy — Sat, 14 Nov 2009 06:59:02 +0000

Jolly good stuff. A quick jab of the 20 demerit (cm) strapon up the proverbial makes you properly humble Swiftman and don’t be such a naughty boy again!

By: Swiftman the infidel

Swiftman the infidel — Sat, 14 Nov 2009 06:52:03 +0000

Mea culpa. I am guilty and I will take my punishment like a man.

Truly sorry David, I got carried away.

By: Hurf Durf

Hurf Durf — Sat, 14 Nov 2009 06:27:01 +0000

Doubt it, Delirium. Guy’s too much of a protectionist. This is just niceties. Good of the Huruld to keep up the delusion though.

By: getstaffed

getstaffed — Sat, 14 Nov 2009 06:26:44 +0000

Sorry, I just don’t get the ‘buzz’ about a FTA with Hong Kong. How much trade, denied today, will be suddenly enabled by this agreement?

By: wreck1080

wreck1080 — Sat, 14 Nov 2009 06:26:12 +0000

I doubt we will ever have free trade with the US. NZ will be excluded.

If I were the US, I would not trade with NZ because of the anti nuclear stance.

How can you have an open free trade deal with a country who is sticking their fingers in your eyes?

By: Pete George

Pete George — Sat, 14 Nov 2009 06:21:39 +0000

And another possibly…

US President Barack Obama today said he would work with New Zealand and other free trading nations to slash tariff barriers in the Asia-Pacific region.

Speaking in Japan prior to flying to Singapore for the Apec leaders’ summit which got under way in his absence, the president singled out the existing Trans Pacific Partnership trade agreement between New Zealand, Singapore, Chile and Brunei as the potential mechanism for building a huge free trade area spanning the Pacific.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10609275

By: Johnboy

Johnboy — Sat, 14 Nov 2009 05:56:42 +0000

“(PS She is a ‘proud’ lesbian)”

How can that be? Does she sport an erect strap on Swiftman?