Expanding and Deepening New Zealand's Trade, Tourism and Investment Relationship with the Gulf

New Zealand Promotional Lunch
Jumeriah Beach Hotel
Dubai
United Arab Emirates

Sultan bin Nasser Al Suwaidi, Governor of the Central Bank of the United Arab Emirates; Khalifa Mohammed al Kinda, Executive Director of the Abu Dhabi Investment Authority; Distinguished Guests. It is a great compliment to me, my delegation and to New Zealand that you have shown your interest in our country by attending today's lunch.

Up until the 1970s, New Zealand's international outlook was focussed firmly on Europe. Over the last quarter century, that has changed both culturally and economically. New Zealand now has a global outlook.

Our first moves to develop a stronger relationship with this part of the world occurred twenty years ago, specifically with Bahrain. Now, New Zealand seeks to expand and deepen our relationships throughout the region. We believe there are new opportunities for us both in the areas of trade, investment, technology exchange, education and tourism.

New Zealand's shift towards a global outlook on the world coincided with profound changes to our economy. We used to be a highly controlled, highly subsidised, inefficient producer of commodity food products. We are now a country of small, efficient government. Our markets are open and we have no subsidisation. We are a country of government surpluses, low inflation and low direct taxes. We have a highly qualified and skilled labour market, free from union control. We have strong growth prospects, high living standards and a good quality of life. Increasingly, our products are of high quality and advanced technology, pitched at niche markets.

New Zealand is already well known in the Gulf as a supplier of lamb and dairy products. Our halal killed lamb, Anchor brand milk powder and butter and Chesdale cheeses can already be found in most supermarkets in the region. We are expanding our exports of other pure and natural products to the Gulf: frozen vegetables, kiwifruit, apples, honey, icecream, natural spring water to name a few. Children here may already know of our "Cheez Toyz".

But we are not just a producer of food. We are increasingly an exporter of specialist technology. Much of this is agricultural and food technology which may have benefits for this region. And while we are small scale compared with Japan, the United States or Europe when it comes to high technology, we have developed top-of-the-range products in particular areas: communications technology, computer software and yachting and navigation equipment, where we are undoubtedly number one in the world, having beaten the Americans in their most cherished yachting competition. One prime example in the Emirates of our expertise in technology is Tait Electronics from our South Island. It has supplied New Zealand designed and manufactured telecommunications systems for use at port Rashid and Jebel Ali.

Our manufacturing sector is also firmly focussed on high quality, sophisticated products, having had to compete with the rest of the world unaided by the Government. New Zealand manufactured laminated timber beams were used in the construction of the prestigious Hilton Beach Club here in Dubai, both for their high quality and their attractive look. We're hopeful the same beams will also be used for the chalets being constructed at this very complex. Our Skope commercial refrigerators are amongst the best refrigerated display cabinets in the world, and are already being marketed here in the Gulf. So too are Proform protective liners, used for prolonging the life of a wide range of utility products. And so it goes on. We believe we have food products, high technology products and manufactured products which would be tremendously valuable to you here in the Gulf.

But it is not just in merchandise trade that we are keen to expand our relationship with your region. New Zealand has an extensive fishing industry. Here in the Gulf, fishing has long been of major importance, for food and for financial reward from activities like pearl diving. Fishing and the sea have long been part of your heritage and you can be proud of your efforts to protect both. We believe we can help. Discussions have already taken place between your Ministry of Agriculture and Fisheries and various New Zealand fisheries management experts. I support moves for us to work together to enhance the management of your fisheries and their value to your people. In the future, I hope to see the development of other such initiatives in other areas.

Certainly, contact between the people of New Zealand and the people of the Gulf will increase over the next few years, as business between our two countries grows. Tourism will also increase. New Zealanders are great travellers. New Zealand travellers can be found almost anywhere in the world, at both the top and bottom ends of the market. I would expect there is potential for you to increase the number of New Zealand tourists who chose to come to this part of the world. I appreciate the work the Dubai Tourism and Promotion Board has done in the past in New Zealand. And New Zealand welcomes tourists from the Gulf. I encourage our tourist operators to be more active in the region. New Zealand has been described as a microcosm of the world's attractions, all in one country the size of Oman. We have a sophisticated tourist infrastructure and a clean and green environment. We are already a natural destination for much of the world and hope more of your people will come to visit us.

Our schools, universities and polytechnics are also open to students from around the Gulf region. Last year, we were pleased to welcome a good number of students from the Middle East, but too few from Dubai. We hope to welcome more in the future.

We are just as open to your investment. Our goal is to maintain the high levels of economic and job growth we have experienced through most of this decade. We know that investment from other countries can help us do that. With low inflation, low direct taxation, a highly-skilled workforce, a flexible labour market, an efficient public sector, and a growing economy, we believe we are an attractive destination for your investment funds. We welcome it - along with your expertise and your access to marketing networks - with few restrictions. Our economy is more open than Hong Kong's. Areas where investment is particularly sought are forestry and tourism, our bio- and agricultural-technology sectors, food and beverage industries, and in telecommunications and software. Many, many other areas also provide sound investment opportunities. The booklet available here today - Invest in New Zealand: The Right Choice - outlines in more detail why you should invest in New Zealand, what opportunities there are, and how to go about it.

You may see New Zealand as a small country, and we are. But our economy is still significantly larger than Egypt's. And because New Zealand and Australia are one market, with a relatively high per capita income, a base in the highly efficient New Zealand economy offers you free and open access to that larger combined market. It's a market of about the same value as Spain, Russia, South Korea, Texas or New York state, and bigger than India. What's more, as a member of APEC, New Zealand will progressively offer better access for goods and services to the economic powerhouses of Japan and the United States.

All these developments suggest greater contact between our two peoples. New Zealand and the Gulf are not so far away from each other as people may think. Auckland City and Dubai are separated by only one stop by air, through either Bangkok or Singapore. The world renowned Emirates airline is already connected with Air New Zealand for onward flights out of Singapore. This morning, I was pleased to sign with the Minister of Communications, His Excellency Ahmed Humaid Al-Tayer, an air services agreement between New Zealand and the United Arab Emirates. That agreement allows direct services by our respective airlines as soon as the market justifies such a step. May that be soon. We also, of course, need to do further work to ensure that visa issuance does not inhibit travel between our two regions. That is a priority of us.

The people of New Zealand and the people of the Emirates will inevitably become closer over the years. We look forward to expanding our trade with you. We look forward to welcoming your tourists and your students, and for more of us to travel here ourselves. We look forward to working together on more projects like the fisheries one. And we welcome your investment in New Zealand. I thank you again for the compliment you have given New Zealand by attending today's lunch. Best wishes for the future. May the relationship between our two regions grow and grow.