Author:Auckland Tourism Events and Economic Development ATEED
Source:Auckland Tourism, Events and Economic Development, ATEED
Topics:Economy, business and industry
International trade is the exchange of capital, goods, services and knowledge across international borders or territories and between cities, regions and countries of the global economy. Being open to global trade and competition is a key trait of successful economies. This economic openness enables growth and improved living standards by providing market opportunities for firms, creating stronger productivity, and stimulating innovation through competition. The World Economic Forum states that “No economy has developed successfully in modern times without harnessing economic openness – to international trade, investment, and the movement of people. This is especially relevant for smaller countries”.
Trade has been fundamental to the economic growth and prosperity of New Zealand. The Ministry of Foreign Affairs and Trade (MFAT) Trade Agenda 20302 states that getting the “best deal from international trade is vital for the New Zealand economy and the prosperity of all New Zealanders.” As stated by MFAT in the Trade Agenda 2030, New Zealand needs to remain agile in the changing global trade environment to retain competitiveness and continue to support growth and prosperity through international trade.
New Zealand could be well placed to benefit from these changes also, with the potential for an upgraded New Zealand-China Free Trade Agreement (FTA); a bi-lateral agreement with post-Brexit United Kingdom; an 11-nation Trans-Pacific Partnership (TPP); and a New Zealand-European Union FTA.
This is particularly relevant for Auckland. Strong GDP growth in recent years has been dependent on generating international revenues. Adapting to a changing environment, supporting traditional tradeable industries continue their growth and assisting higher value advanced industries succeed in global markets is key to future prosperity.
This fourth and final paper in the Auckland Tourism, Events and Economic Development (ATEED) Economic Insights Series presents an overview of Auckland’s trading linkages and seeks to highlight the importance of trade and investment to Auckland’s economic performance. This paper is also a precursor to the Auckland Trade Framework, which will be published by ATEED later in 2017. This framework will build on the insights presented in the context of the four ‘shifts’ within the MFAT Trade Agenda 2030, and will highlight opportunities for Auckland businesses to further develop global linkages.
This paper has been developed in partnership with the New Zealand Institute of Economic Research (NZIER), a leading New Zealand commentator on the changing global trade environment.