Perspectives on the US economy after 8 months of Trump - NZIER Insight 71

Bipartisan trade policy must be re-established to support Kiwi businesses, NZIER says

A new research note from the New Zealand Institute of Economic Research (NZIER) recommends a return to New Zealand’s long-cherished bipartisan trade policy that has been damaged in recent years’ debates over the Trans-Pacific Partnership (TPP).

“Kiwis’ living standards depend crucially on foreign trade and investment, so we need support for trade deals on both sides of the political spectrum”, NZIER’s Deputy Chief Executive John Ballingall said.

Labour isn’t anti-trade; but it is stuck on TPP and foreign investment into housing

“It’s not correct to say that the Labour party is anti-trade. It has expressed strong support for New Zealand’s aspirations to get free trade agreement (FTA) deals with the EU, UK and Pacific Alliance. That is encouraging”, he added.

However, Labour’s position on TPP rests on the issue of whether New Zealand should be able to ban existing house sales to foreign investors. This would not be permitted under the current TPP text. A ban is also not possible under the Korea-New Zealand FTA, the provisions of which now apply to the China FTA as well.