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July 13, 2014 2:00pm by David Farrar

NZ exports 1983 – 2018

An interesting display of how our exports have changed over 35 years, by NZ T&E. It shows the benefits of free trade agreements.

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Comment23

New Zealand
Free Trade

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Comments (23)

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Gulag1917

Export, export and export so NZ can import, import and import. Is there any gain to NZ’s advantage?
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July 13, 2014 2:20pm
David Farrar

Yes, beyond belief. Without imports we would have a hugely reduced range of goods and services to choose from.
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July 13, 2014 2:36pm
Gulag1917

Meanwhile our own manufacturing gets decimated.
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July 13, 2014 2:39pm
Paul Walker

The whole point of trade is importing. It is imports that makes us better off. See http://tinyurl.com/lvv2t7h
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July 13, 2014 2:42pm
Paul Walker

“Meanwhile our own manufacturing gets decimated.”

Assume for the moment that this statement is true, So what? Trade makes an economy move away from things it is comparatively bad at doing and more onto things it is comparatively good at doing and it increases average income by doing so. This is the whole point of comparative advantage.
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July 13, 2014 2:46pm
Gulag1917

Zimbabwe once exported corn and because of its neglect and persecution of farmers now has to import corn. Zimbabwe producers and consumers lose and the international middlemen gain.
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July 13, 2014 2:53pm
nickb

Great comparison Gulag. Genocide of white farmers v some NZ factories closing because Japan can do it cheaper and better. I am far smarter for your economic wisdom.
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July 13, 2014 2:55pm
Paul Walker

@Gulag1917 The problems in Zimbabwe have nothing to do with trade, their problems are internal.
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July 13, 2014 2:58pm
ShawnLH

“Meanwhile our own manufacturing gets decimated.”

Manufacturing in NZ has increased under National.

“New Zealand manufacturing sales volumes rose in the fourth quarter last year, driven by dairy and meat and adding to evidence of strong, export-led demand for the nation’s soft commodities.

Sales volumes climbed 5.7 per cent, seasonally adjusted, the biggest gain since the first quarter of 1995.”

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11217087

“Rising oil and chemicals manufacturing, especially at the Methanex plant in Taranaki, helped boost total manufacturing sales volumes for the third quarter in a row.”

http://www.stuff.co.nz/business/industries/10142045/Oil-keeps-manufacturing-up

I’m not sure what your definition of “decimated” is, but it does not seem to correspond to reality.
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July 13, 2014 3:02pm
Kimble

Meanwhile our own manufacturing gets decimated.

A reduction of 10% is nothing compared to the gains in welfare due to imports.
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July 13, 2014 3:04pm
Gulag1917

A lot of the imports are low quality and requires often a few purchases of the same item to make up for the quality of one of the same item of former eras however that is certainly a consumers choice. A favourable balance of trade is the goal of
government agencies.
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July 13, 2014 3:28pm
Gulag1917

Chinese export subsidies
http://blogs.hbr.org/2013/04/how-chinese-subsidies-changed/
meanwhile idealistic economics NZ gets bought out by the Chinese.
Wake up mugs.
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July 13, 2014 3:54pm
Paul Walker

” A favourable balance of trade is the goal of government agencies.”

What is a “favourable” balance of trade and why do we want it?
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July 13, 2014 3:58pm
Gulag1917

A favourable balance of trade;
the difference in value between imports and exports, said to be favorable to a country when exports are greater.
“What is a “favourable” balance of trade and why do we want it?”
Ask the bureaucrats.
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July 13, 2014 4:01pm
Paul Walker

“Chinese export subsidies”

Which amounts to the Chinese subsiding our consumption, does it not. Thanks China! And how is NZ being bought out by the Chinese and why do we care?
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July 13, 2014 4:02pm
Paul Walker

“the difference in value between imports and exports, said to be favorable to a country when exports are greater.”

Actually no. Such an idea is just mercantilism, which Adam Smith demolished more that 200 years ago. There is no advantage in having exports greater than imports. As I have already noted it is imports that make us better off so we want as many of them as we can get. This means that imports should at least equal exports.
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July 13, 2014 4:06pm
Gulag1917

Tens of millions of Chinese want to emigrate, ever considered that they might want to emigrate in large numbers to NZ. I know of a solar panel manufacturing business in Australia bought recently by the Chinese. They are closing the Australian manufacturing part of the business down shifting production facilities to China and they will then export the solar panels to Australia.
NZ being bought out;
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11221246
No level playing field.
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July 13, 2014 5:18pm
Gulag1917

To attain a favourable balance of trade, greater amounts of iron ore for example must be exported to pay for the imported solar panels.
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July 13, 2014 5:29pm
Kimble

Tens of millions of Chinese want to emigrate, ever considered that they might want to emigrate in large numbers to NZ.

That has nothing to do with anything.

I know of a solar panel manufacturing business in Australia bought recently by the Chinese. They are closing the Australian manufacturing part of the business down shifting production facilities to China and they will then export the solar panels to Australia.

Why build something in China when it can be built in Australia more expensively, using more resources, and more costly to ship to the rest of the world?

Its a mystery.
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July 13, 2014 5:47pm
Paul Walker

“To attain a favourable balance of trade”

But why do we want a “favourable balance of trade”?
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July 13, 2014 5:57pm
gravedodger

To those who still shill about “buy NZ made”, the choice is simple a K9 color TV or a curved surround wide screen, A Mazda assembled from a CKD pak or a lexus, sure free trade allows crap imports but sometimes that is still just great.

I recently had a need for a 13mm impact driver drill for a one off specialist task bought a “Colt” from Bunnings, did the job, still going, didn’t require the round trip of 180Kms to return to a hire center. cost 30 bucks, still reverses, hammers, variable speed and a vg chuck.
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July 13, 2014 6:24pm
Gulag1917

“Tens of millions of Chinese want to emigrate, ever considered that they might want to emigrate in large numbers to NZ.
That has nothing to do with anything.”
Obviously you are not to familiar with Chinese culture which is tribal. A Chinese construction company will win a contract overseas and bring in Chinese employees to work on the contract. This has happened many times already.
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July 13, 2014 8:56pm
Kimble

OF COURSE they want to come to NZ.

We are rich.

Their own government is subsidising our richness.

We have lots of juicy imports to show for it.

Plus China is pretty shitty actually.
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July 14, 2014 12:06am

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