Global Insights – April 2023

North America

Finance Minister Grant Robertson traveled to Washington DC this month to attend the
Spring Meetings of the World Bank and the International Monetary Fund. The meetings are a
forum for finance ministers, central bankers, and representatives from public and private
sectors around the world to discuss global economic development and opportunities. During
the visit Minister Robertson met with several Finance Ministers and Treasurers from various countries, including the UK, Canada, Australia, the United States, Singapore, Ireland, Luxembourg, and the Philippines.

This month also saw the arrival of the FIFA Women’s World Cup Trophy Tour, An event was held in New York featuring speakers from Australia and New Zealand’s very own Chelsea Semple. Chelsea has an impressive rugby career, having represented New Zealand in both sevens and the 2017 Women’s Rugby World Cup squad, among other accomplishments. The Women’s world cup is expected to draw a global audience of more than 1.12 billion people and will be a great way to put New Zealand on the world stage.

Finally this month, our Kiwi and Australian community came together to commemorate Anzac day. The New York commemoration was held at the Intrepid Sea, Air & Space Museum giving the event a unique backdrop of the Hudson River. There was a big turnout of people with crowds braving the cold to remember those who have fought for our freedom.

Gary Fortune, Kea North America Regional Director

UK and Europe

Good news for Kiwi exporters this month, a major milestone was met in the progress of the UK-NZ Free Trade Agreement (FTA), with the Trade (Australia and New Zealand) Bill receiving Royal Assent. The King has agreed to make the Bill into an Act of Parliament, which means the UK and New Zealand can now agree a date for the FTA to enter into force. 

The UK’s flagship fintech event was held this month. The UK is the world’s preeminent financial services hub and UK Fintech Week 2023 saw several Kiwi fintech founders, entrepreneurs, and investors join banks, regulators, policy-makers, academics and media from around the world at a programme of tailored events, networking opportunities and information sessions. We look forward to seeing more New Zealand tech businesses in town in June for London Tech Week. 

April marks one of the most moving highlights of the calendar, commemoration services for Anzac Day, bringing together New Zealanders and Australians to acknowledge the courage and sacrifice of those who contributed so much to shaping the story of our nations. Kea joined members of the defence forces, dignitaries and the public at the dawn service at Hyde Park Corner in London to pay our respects to those lost in conflict. Kea was also represented at the wreath-laying service at the Cenotaph later that morning.

Finally, Kiwi living in London or visiting in April and May will see the city at its best for the historic event of the coronation of King Charles, the first coronation in 70 years. To mark the occasion, London is receiving a royal makeover before tourists from around the world flock to the capital to join in with the festivities – with streets bedecked with flags, monuments cleaned, and seating installed along the parade route. 

Sara Fogarty, Kea UK/Europe Regional Director

China

The economic environment is getting brighter in China. Following the official visit of New Zealand’s Minister of Foreign Affairs Nanaia Manuta in March, China received official visits from France, EU Commission, Singapore, Malaysia and Spain in April. The key leaders of Apple, Tesla, Siemens, Asmac, Mercedes-Benz, BMW, Nestel, Taikoo, Qualcomm Group, Kering Group, Pfizer and many other large-scale foreign corporate giants also visited China in April. This shows the strong and resilient attraction of the China Market. 

For Kiwi companies looking to win online in China, here is some interesting news: China’s South tech hub Shenzhen has unveiled a plan to become a global livestream ecommerce centre, with the ambitious goal of achieving over US$43.7 billion in sales by 2025. They plan to achieve this by building livestream e-commerce infrastructure, incubating at least 50 relevant industrial parks, establishing “one-stop” livestream e-commerce bases. Sectors including apparel, beauty, jewellery and consumer electronics are expected to benefit from the city’s doubled-down endeavours in strengthening supply chains amid the digital renovation. Shenzhen is set to cultivate and draw in a minimum of 100 top institutions specialising in livestream e-commerce by 2025, while fostering more than 10,000 influential live streamers. This will be achieved in partnership with established MCN agencies and educational bodies. Definitely an opportunity for Kiwi businesses to keep their eye on.

Finally this month Kea was honoured to support MFAT’s ANZAC DAY Commemoration Services in Shanghai, Guangzhou and Chengdu. In Shanghai, Kea laid a wreath on the morning of 25 April paying tribute to this special day that is very close to Kiwi hearts. 

Rebecca Bao, China Regional Director

New Zealand

This month Prime Minister Chris Hipkins travelled to Australia to mark 40 years of Closer Economic Relations (CER) and share in the announcement of an historic decision to provide a new direct pathway to citizenship for New Zealanders living in Australia, bringing the two countries even closer together. Australia is our second-largest trading partner, and CER is recognised as one of the closest, broadest and most mutually compatible trading relationships in the world. The new pathway to Australian citizenship comes into effect on 1 July 2023 and is retrospective, making a real and meaningful impact on the lives of many New Zealanders. Those in Australia since 2001 will be able to apply directly for citizenship without gaining permanent residence first and it gives Kiwis access to services and benefits, once they become citizens.

Kiwi exporters will benefit from the announcement this month of the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The UK’s accession to the bloc complements the outcomes of the NZ-UK FTA, which will mean that 99.5% of New Zealand’s current goods exports to the UK will be duty-free from entry into force. At full implementation, exports are expected to grow by over 50%, and GDP by up to $1 billion. As well as opening new doors to trade, the CPTPP has already lowered costs for businesses, saving Kiwi exporters $300 million in tariffs in just the first two years.

Businesses involved in food export and food technology will soon be able to explore future consumer demand scenarios in the Ministry of Primary Industry’s first long-term insights briefing – The future of Aotearoa New Zealand’s food sector: Exploring demand opportunities in the year 2050. The insights briefing is aimed at creating a long-term plan for the sector, which is critically important to New Zealand’s export growth. New Zealand is well-placed to take advantage of the changing global food market. To remain competitive however, we must understand changing global market dynamics, respond to consumer demands, and invest in technology, production processes, and other capabilities that ensure our food exports remain competitive, sustainable, and high-quality. Recent weather events have highlighted just how vital it is to build more resilient food production systems that are better able to withstand shocks, while also considering our environmental and social responsibilities. The public consultation stage for the insights briefing finished in February and the briefing will be presented to a Parliamentary Select Committee for consideration, before being finalised.

Finally, this month saw the appointment of Hon. Barbara Edmonds as Minister of Economic Development, taking over the portfolio from Acting Minister Hon. Dr. Megan Woods. Minister Edmonds is also the Minister for Internal Affairs and Pacific Peoples. 

Saya Wahrlich, Global Director, Government & Industry