With the Trans-Pacific Partnership Agreement (TPP) entering what Jacobi says he hopes will be its closing negotiating phase, now is good time for the US and NZ to strengthen ties. TPP covers 38 percent of global GDP and 23 percent of world exports.
Jacobi is attending the United States-New Zealand Pacific Partnership Forum in Washington, DC.
The NZ US Council commissioned the NZIER research to brief New Zealand delegates at the forum.
“The research shows that New Zealand and the United States have broad economic relationship that covers trade in goods, services, including digital and IT services, people-to-people links including tourism and education, and investment,” says Jacobi.
“Even so, there are signs that over time New Zealand and the United States risk becoming less important economically to each other.”
New Zealand now provides just 0.15 percent of American imports: down from 0.26 percent in 1991. Similarly, the US share of New Zealand imports has dropped from 17 percent to 9.3 percent in the same period.
“This underscores the importance of TPP and the boost it will give to two-way trade and investment,” says Jacobi.
Many New Zealand organisations are now exploring opportunities in the rapidly-developing Asian economies.
While much progress has been made in developing relationships with China, Prime Minister John Key has signalled interest in strengthening economic ties with other Asian economies.
In April last year he led high-level delegation of officials and business leaders to Indonesia. The first major cross-sectoral business mission to Indonesia since then will visit from May 18-31 this year to explore opportunities in Jakarta and the fast-developing economies of Bandung, Surabaya and Bali.
he McKinsey Global Institute, in its report “The Archipelago Economy”, predicts Indonesia will grow from being the world’s 16th largest economy to seventh by 2030.
Ruth Le Pla will accompany the NZ Business Mission to Indonesia on media grant from the Asia New Zealand Foundation. Her articles will be published in Executive Update, NZ Management magazine and associated publication The Director.
