Trade Archive

You, Dear reader may be more educated than I on the implications of the following so I will make it quick and dirty:

Recently Prime Minister of New Zealand Jacinda Ardern has been globe trotting. First she went to the U.S. She managed to admonish the US on it’s gun laws just with her presence and also troll, “Keyboard warriors”, before meeting with the President of the United States for some charming but gropey photo ops in Washington.
The New Zealand public were told that no headway had been made in trade talks with the U.S. What we weren’t told that a major five way security pact was being discussed. The reasons for which will become clear. You can and needs must de-link Trade and Security.
And Ardern went on her way.
The EU leg was a much vaunted success. She and her diplomatic team finalized trade talks four years in the making.

I failed to see much detail in the media. So looked at the material coming from the European Union

Key Elements of the New Zealand-EU Trade Agreement

“Bilateral trade is expected to grow by up to 30% thanks to this deal, with EU annual exports potentially growing by up to €4.5 billion. EU investment into New Zealand has a potential to grow by up to 80%. The deal can cut some €140 million a year in duties for EU companies from the first year of application.”

“European Commission President, Ursula von der Leyen, said:  “New Zealand is a key partner for us in the Indo-Pacific region. This trade agreement brings major opportunities for our companies, our farmers and our consumers, on both sides. It can help increase trade between us by 30%. It includes unprecedented social and climate commitments. This new agreement between the European Union and New Zealand comes at an important geopolitical moment. Democracies – like ours – work together and deliver for people.”

This is an entirely different angle and set of statistics to that reported in New Zealand media:

“Prime Minister Jacinda Ardern, who helped conclude negotiations in Brussels said it would help grow exports to the European Union by $1.8 billion a year by 2035” NZ Herald 30th June

Would’ya look at that. There is a significant balance of trade deficit there of 2.7 billion.

Leaving that there for a moment:

New Zealand was informed that the benefits were all positive for New Zealand though that clearly is not the case. That kind of deficit is going to lower the value of the New Zealand dollar and its already hard enough to buy essential medicines and goods and services on the open market.

I was interested in what New Zealand may have had to put up to gain a material benefit from the deal.
Aware of the Prime Ministers social engineering agenda I went further in: And there it is. Once the deal is signed. New Zealand will be legally tied to the EU Carbon Market and the International Labour Organization.

1: Both Labour and Climate disputes will be enforceable in an International Court setting.

2. Labour under Ardern is committing to a low Carbon economy (and probably reduced methane emission economy as well) No wonder the Farmers feel rooted. EU pig farmers get open access to our markets yet dairy herd numbers in New Zealand may get culled.

3. New Zealand working conditions will be dictated by Brussels. To put it mildly. This will not give New Zealand a productivity boost.

4. All this comes with extra costs on businesses.

An excerpt from the Trade Deal:

“The TSD chapter obliges both parties to the effective implementation of the ILO conventions and the Multilateral Environmental Agreements (MEAs) that each party has ratified.

The agreement commits the EU and New Zealand to effectively implement the Paris Agreement and to work together on climate-related matters, including carbon pricing, or transition to low-carbon economy.

The TSD chapter has a broad range of commitments and cooperation provisions on issues such as decent working conditions, including labour inspection social dialogue, sustainable management of natural resources, forestry, fisheries, aquaculture, ocean governance and the promotion of responsible business conduct. It also promotes cooperation to encourage the shift to a circular and resource-efficient economy and deforestation-free supply chains. It also contains provisions regarding the relevant UN and ILO conventions advancing women’s economic empowerment and gender equality, including promoting cooperation in international fora to advance these objectives.

TSD commitments are legally binding and enforceable through the agreement’s general dispute settlement. Moreover, for the first time in the EU trade agreement, the TSD chapter foresees the possibility of trade sanctions as a matter of last resort, in instances of serious violations of core TSD commitments, namely the ILO fundamental principles and rights at work, and of the Paris Agreement on Climate Change.

Charming. It would have been polite to have had a few press releases at the ready on New Zealand’s binding economic ties with the EU.

And don’t bother looking for the details. These are yet to be released. Of course. Transparency is everything.

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