New Zealand and European Union begin formal trade negotiations


Whilst most people were more interested in Prime Minister Jacinda Ardern’s baby girl being born, I was watching the arrival of the European Union chief negotiator Cecilia Malmstrom. Mrs Malmstrom is from and is visiting New Zealand to formally launch trade negotiations with a view to completing a trade agreement between New Zealand and the E.U.

I do have some reservations about the potential F.T.A. that the European Union is likely to seek. They include but are not limited to:

  • the concessions that New Zealand will be asked to make, and what we will be granted in return.
  • that the competing factions inside the E.U. will make it difficult for New Zealand to get a level deal across all of the E.U. member states
  • That provisions around the Euro will leave the New Zealand dollar at a disadvantage

In terms of the member states, there are 27 separate countries, each with their own agenda. Some like France will be highly unionized economies with a degree of reluctance to shed the protective cloak that tariffs and subsidies can offer sectors that are not performing so strongly – their propensity for a good riot when some decision or another goes against them is well noted.

I also wonder if Mrs Malmstrom is the best suited person for this job. The first is she had a major role in promoting the Transatlantic Trade and Investment Partnership (T.T.I.P.), which is the European equivalent of the Comprehensive and Progressive Trans Pacific Partnership. Like the T.P.P.A./C.P.T.P.P. it has run into significant opposition over issues ranging from enacting laws that are allegedly going to harm corporate profitability to human rights, the environment and international copyright laws. The second is that despite claims made by her that the European Commission for Trade has unprecedented transparency, it is not possible for many European politicians to read important documents.

The European Union, however, are serious. This is a serious chance for New Zealand to negotiate a trade agreement that can help the economic development of this country. The shared respect we have for human rights and environmental issues will hopefully help to undermine the concerns that are held about Mrs Malmstrom’s past record.

So soon after their role in negotiating the damaging Trans Pacific Partnership Agreement which will undermine New Zealand sovereignty, it is rather rich of National to be talking about the need for a “fair” agreement. This is all the more so when an interpretation of “fair” presumes to mean no undue concessions by either side, respect for the others negotiating position and understanding of public concerns. None of this was recognized by National or A.C.T. when they were leading the negotiations on the Trans Pacific Partnership between 2010-2017.

New Zealand is lucky enough that although we lack constitutional safeguards to stop the undermining of our natural sovereignty, we have a degree of transparency that is not enjoyed in other nations. Had we had the transparency of a country such as Singapore, a semi-authoritarian nation-state, I doubt New Zealanders would know nearly as much as they do because of the mechanisms that protect our right to know.

So, whilst there are potential opportunities for New Zealand, there are potential pitfalls as well. Due caution around these negotiations is well advised.

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