New Zealand's Clever Moves in a Shaky Trade World

New Zealand is bracing for a turbulent period in global trade. The country's finance chief, Nicola Willis, advocates for strengthening ties with neighbors and partners, particularly amid U.S.-China trade tensions.

Strengthening Trade Alliances

Willis recently discussed this at major finance meetings in Washington. Despite risks, many countries are collaborating. New Zealand boasts robust trade agreements, including a pact with 11 nations like Canada and Japan. The European Union is also keen on partnering, and a promising new deal with the United Arab Emirates is in the works.

Trade Flow and Tariffs

Most countries adhere to trade rules, with only a few—like the U.S., China, and Canada—recently raising tariffs. This ensures that trade continues smoothly for the most part.

Climate Change Commitments

New Zealand is committed to combating climate change, honoring its Paris accord promises regardless of U.S. actions. Willis emphasizes the threat of extreme weather, especially to small island nations. Additionally, consumers' concern for emissions makes climate action beneficial for business.

Trade deals with the EU and others now include climate commitments, placing New Zealand in good company.

Boosting Defense Spending

New Zealand is increasing defense spending as part of the Five Eyes alliance with the U.S., Australia, and others, ready to face future challenges.