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Small States and the Changing Global Order pp 287–305Cite as

New Zealand’s Trade Policy

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Part of the book series: The World of Small States ((WSS,volume 6))

Abstract

Trade policy is a fundamental facet of New Zealand’s foreign policy. No longer considered ‘low politics’ in comparison to the ‘high politics’ of security policy, trade policy in pursuit of overseas market access is integral to New Zealand’s economic well-being…and security. It engages the energies and skills of the country’s most dedicated cabinet ministers, best diplomats and most cosmopolitan business leaders.

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Notes

  1. 1.

    The following passages draw on my book New Zealand Trade Negotiations (Wellington: New Zealand Institute of International Affairs, 2017), Chapter 1 and Chapter 11.

  2. 2.

    “NZ Trade Policy,” Ministry of Foreign Affairs and Trade, accessed 13 February 2019, https://mfat.govt.nz/en/trade/nz-trade-policy/, abridged by the author.

  3. 3.

    Ministry of Foreign Affairs and Trade (2017), p. 13, https://www.mfat.govt.nz/assets/Trade2030/Trade-Agenda-2030-Strategy-document.pdf.

  4. 4.

    https://www.stats.govt.nz/assets/Uploads/Reports/Global-New-Zealand-December-2017/global-new-zealand-international-trade-investment-and-travel-profile-year-ended-december-2017.pdf.

  5. 5.

    These passages draw on my book Negotiating Free Trade: The New Zealand-Singapore CEP Agreement (Wellington: New Zealand Institute of International Affairs, 2002), Chapter 5.

  6. 6.

    Ministry of Foreign Affairs and Trade (1993). For an updated summary see “NZ Trade Policy.”

  7. 7.

    Free trade agreements are never totally free. Their provisions are limited by United Nations sanctions, WTO rules, international treaties, and agreements by the parties to exclude, delay, or subordinate designated sensitive trade or investment sectors.

  8. 8.

    “NZ Trade Policy,” slightly abridged by this author.

  9. 9.

    GATT Article XXIV specifies the requirements for FTAs. See “WTO Rules on Regional Trade Agreements,” WTO, https://www.wto.org/english/tratop_e/region_e/region_e.htm#rules_ita.

  10. 10.

    Jahn (2013).

  11. 11.

    Keohane (2005) and Keohane and Nye (2001).

  12. 12.

    Habeeb (1988), Chapter 2, following Zartman and Berman (1982), pp. 42, 87, passim.

  13. 13.

    Bacharach and Lawler (1981).

  14. 14.

    Pfetsch (2007), pp. 115–117.

  15. 15.

    Fisher et al. (2011) and Atkinson (1977).

  16. 16.

    This is called ‘playing the frame game’, that is, attractively crafting the problem and options, by Devereaux et al. (2006), pp. 29, 33–34.

  17. 17.

    The Ministry of Foreign Affairs and Trade offers its own six-phase framework. Readers are welcome to employ it instead of my eight-phase framework, with which it is compatible. (1) Identify the opportunity for a trade agreement. (2) Conduct studies. (3) Engage in negotiations. (4) Review and approve the agreement. (5) Legislate. (6) Implement and monitor. See “About Free Trade Agreements,” Ministry of Foreign Affairs and Trade, https://mfat.govt.nz/en/trade/free-trade-agreements/about-free-trade-agreements.

  18. 18.

    New Zealand’s trade negotiators, and this author, are well aware that in complex trade relationships and negotiations these phases will overlap, move out of sequence, stall, and repeat themselves. They will work with other policy sectors such as diplomacy, security cooperation and cultural exchange, and will adapt to the unique contours, nuances, and unexpected developments often encountered in the multiplex relationships between the negotiating governments.

  19. 19.

    MFAT, New Zealand Trade Policy. For an updated summary see “NZ Trade Policy.”

  20. 20.

    Zartman and Berman (1982), Stein (1989) and Saunders (1985).

  21. 21.

    See Habeeb (1988), p. 31.

  22. 22.

    Zartman and Berman (1982), pp. 201–202.

  23. 23.

    Kremenyuk (2002) and Pruitt and Carnivale (1993), pp. 3–4.

  24. 24.

    Putnam (1988).

  25. 25.

    Evans et al. (1993).

  26. 26.

    Mayer (1992) and Richard Friman (1993).

  27. 27.

    Readers wishing more are referred to the full case studies presented in Hoadley (2017).

  28. 28.

    McMillan (2001), p. 11.

  29. 29.

    Todd McClay, “McClay congratulates Crawford Falconer,” Government press release, 18 June 2017, https://www.beehive.govt.nz/release/mcclay-congratulates-crawford-falconer.

  30. 30.

    For an account of this controversial episode see my book New Zealand Trade Negotiations, 228–232.

  31. 31.

    “NZ Inc Strategies,” Ministry of Foreign Affairs and Trade, accessed 27 January 2018, https://www.mfat.govt.nz/en/trade/nz-inc-strategies.

  32. 32.

    Ministry of Business, Innovation and Employment (2015), http://www.mbie.govt.nz/info-services/business/business-growth-agenda/pdf-and-image-library/towards-2025/mb13078-1139-bga-report-01-export-markets-09sept-v17-fa-web.PDF.

  33. 33.

    MFAT, Trade Agenda 2030; “NZ Trade Policy”; Bill English, “PM Launches Ambitious Trade Agenda,” Government press release, 24 March 2017, https://www.beehive.govt.nz/release/pm-launches-ambitious-trade-agenda.

  34. 34.

    David Parker, “Modernising Our Trade Policy with Trade for All: Have Your Say,” Government press release, 6 August 2018, https://www.beehive.govt.nz/release/modernising-our-trade-policy-trade-all-have-your-say.

  35. 35.

    Woodfield (2009), p. 145. Also see Woodfield (2008).

  36. 36.

    Woodfield (2009), p. 144. Also see Woodfield (2008).

  37. 37.

    Quotations excerpted from John Wood, “Experiences of a Trade Negotiator” (speech, Auckland, 6 December 2001), transcript in this author’s possession.

  38. 38.

    Brown (1999), p. 46.

  39. 39.

    McMillan (2001), p. 9.

  40. 40.

    McMillan (2001), pp. 7–8.

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  1. The University of Auckland, Auckland, New Zealand

    Stephen Hoadley

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  1. Department of Political Science and International Relations, University of Canterbury, Christchurch, New Zealand

    Anne-Marie Brady

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Hoadley, S. (2019). New Zealand’s Trade Policy. In: Brady, AM. (eds) Small States and the Changing Global Order. The World of Small States, vol 6. Springer, Cham. https://doi.org/10.1007/978-3-030-18803-0_17

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