• Hon Todd McClay discussed New Zealand's international engagement and diplomacy efforts, emphasising the importance of being visible and active on the world stage.
• The Minister:
o Outlined the Government's priority to open doors for New Zealanders evidencing frequent overseas missions by the PM, Deputy PM, Minister Collins, Minister Watts and himself.
o Discussed the importance of building personal relationships between leaders to create opportunities for economic growth,
o Emphasized the need to strengthen economic ties with Japan and other countries through increased trade architecture, increased investment in infrastructure, and improved regulatory standards.
o Noted China remains our largest trading partner but highlighted the importance of a ‘China AND’ strategy to expand opportunity, double export value and increase our Indo-pacific relationships.
Government's role in international relations and trade missions.
• Hon Todd McClay emphasized the importance of NZ's global presence – being engaged and on the ground in-country is pivotal to being taken seriously as a smaller economy
• The Minister discussed recent overseas trips to: China, the European Union (EU), the Gulf region, India, Japan, and Singapore. These visits have strengthened the foundations for long-term growth. And solidified the value demanded by trade partners for New Zealand's high-quality and safe food and fibre exports as well as opened the door for digital trade and services.
• This Government has committed to executing more International Trade Missions than any other Government – this is on track.
Trade missions and building relationships with Japan and other countries.
• Reestablishing relationships with foreign countries post-COVID, particularly Japan, will level the playing field for NZ businesses.
• Business delegations play an important role in bringing the public along and telling a useful narrative – allowing media and business an inside look at Government meetings and the formation of closer relationships, spurs economically and culturally meaningful B2B deals that benefit all Kiwis. It is important we continue to promote the unique opportunities NZ can prosecute in current geopolitical climate.
• Minister McClay outlined multiple engagements and bilateral meetings with his Japanese counterparts, including around the CPTPP, OECD, WTO, and IPF meetings, as well as the recent G7 meeting in Italy.
• NZ and Japan have strong trade ties through the CPTPP architecture which allows us to steadily grow our economic relationship.
o Japan is currently: Our 4th largest export destination $4.19B last year; our 5th largest two-way trading partner $9.65B last year; the 4th largest global economy; and a critical likeminded partner in our Indo Pacific region.
Trade and investment between NZ and Japan, with focus on energy and tourism.
• Hon Todd McClay emphasized the importance of shared values and personable relationships to growing the NZ-Japan relationship and business opportunities.
• In Tokyo, the PM and Japanese PM Fumio Kishida discussed investment opportunities, signalling a commitment to openness and certainty for investors.
• The recent mission saw New Zealand and Japan sign deals in various sectors, such as energy and tourism.
Key Announcements include:
o Eastland Group signed an investment deal with Japan's Obayashi Corporation that will see the Japanese company acquire a 50% stake in Eastland Generation to drive further growth in sustainable energy development and innovation.
o Rocket Lab signed the biggest single launch deal in its history, with Japanese company Synspective. The deal will see 10 dedicated launches for Synspective from Rocket Lab's New Zealand launch site.
o Fabrum announced a deal to supply Toyota Japan with a liquid hydrogen storage system, part of a number of green-hydrogen projects that Fabrum - a world leader in zero-emission transition technologies - is working on around the world.
o TODA Corporation of Japan announced it will invest in New Zealand's luxury hotel industry, via Auckland-based Coherent Hotel Limited, with plans to build 11 new residence-style hotels near Queenstown.
o Zespri launched a global cause campaign focused on encouraging people to eat better to help tackle health challenges.
o Air New Zealand announced that the airline will increase its capacity for Japan to encourage inbound tourism, adding 30,000 seats to its Tokyo route to meet demand and boost tourism.
Doubling exports to Japan and other countries.
• New Zealand and Japan can strengthen relations through strong government to government relations that open doors for lasting and secure B2B and people partnerships. This is supported by our shared values and security investments.
• Minister McClay outlined a plan to double exports by value over 10 years. This includes removing regulatory barriers and increasing trust and stability in trade.
• Trade missions are an important tool for economic growth and building relationships. The Minister encouraged organisations to continue promoting trade and investment between New Zealand and Japan.
Next steps/vision:
• Continue efforts to strengthen people-to-people links between New Zealand and Japan businesses.
• Systematically work to reduce barriers and make it easier for Japanese companies to invest in New Zealand.
• Judge the success of future trade missions by the amount of additional trade and investment generated.
