‘Devil Will Be In Detail': Luxon Reacts To Possible USA-China Trade Deal
But the prime minister says it can only be a good thing as the global trading environment seeks more certainty. Morning Report
Prime Minister Christopher Luxon says a possible USA-China trade deal is positive news, but time will tell what it means for New Zealand and the rest of the world.
US President Donald Trump said a deal with China is 'done' after two days of high-level talks in London.
Luxon welcomed the news but wanted to see the finer details.
'What we want to see is more certainty in the global trading environment, and I've read the reports as well,' he said.
'The devil will be in the detail, but that can only be a good thing.'
Luxon said he expected to discuss the matter with China President Xi Jinping on his next trip the global giant.
'I'm sure that will be a topic of conversation about how we see the global trading environment and how we're observing in the region, but also around the world,' he said.
Despite the trade uncertainty, Luxon said New Zealand exporters to the US had been making good progress.
'They'll still finding really great opportunities to grow their businesses, they're doing a great job of targeting the right channels and customers,' he said.
'But yes, of course that will be a big top of conversation when I do catch up with both President Xi and Premier Li (Qiang) in due course.'
Agriculture Minister Todd McClay also welcomed the news of a possible US-China trade deal.
The overnight announcement comes as the government welcomes the state of the country's agriculture sector.
The Ministry of Primary Industries' Situation and Outlook report is projecting a double digit increase in New Zealand export revenues this year – though it warns about global uncertainty.
It estimates New Zealand's agricultural export revenue could reach just under $60 billion by the end of June, up from a dip in 2023-4.
McClay told Morning Report if a US-China deal has been done it would be 'good news'.
At an OECD trade ministers meeting in Paris last week he had met with the trade ministers of both China and the US.
Both had then gone off for joint talks so some momentum had been building to try and find a solution to their tariffs impasse.
If things calmed down for international trade it would bring 'welcome relief' for exporters and result in some 'sensible decision-making'.
Exporters 'go for value'
McClay said the remarkable growth in primary exports was very positive.
Dairy had enjoyed a solid season with a good supply of grass which had increased milk production.
The meat sector was performing well and for the first time $5 billion worth of kiwifruit had been exported.
Even the US market faced with tariff uncertainty was providing some opportunities for Kiwi exporters, citing the example of NZ King Salmon which has talked of increased sales at a higher price.
Kiwi exporters were working hard to add value to their products, McClay said. One example was selling ready to eat burger patties to China which resulted in greater returns for farmers.
'So we're seeing Kiwi exporters go for value, not competing on price anywhere as much as they used to.'
Luxon said the government, particularly McClay and Finance Minister Nicola Willis could take a 'tremendous credit' for the growth.
'We've created the conditions for growth; it's ultimately up to the businesses themselves to go out and seize on those opportunities,' he said.
'But if I think about the work that Todd's undertaken to make sure we're opening new markets, whether it's the GCC, the UAE, a 21 percent growth in the UK just in the last 12 months, a 28 percent in the EU by virtue of Todd bringing that agreement into earlier acceptance.
'There's been tremendous progress made on the trade front, and I think Nicola's work to make sure that she's cleaning up the books, good financial management, good fiscal management to lower inflation, to lower interest rates to get the economy growing, to get people employed – that's the work we've been doing as a government.'
Luxon reiterated the government's belief in the importance of growth and said it was the primary industry sector pulling New Zealand out of a recession.
'We've got a really exciting future to shape it despite all the volatility that's out there in the world.
'Really proud of the primary industry sector, but also proud of the work of both Nicola and Todd and all of our team to create the conditions for growth as well.'
On building in sustainability
A government-backed grass certification standard for dairy and meat exports had been launched at Mystery Creek Fieldays yesterday, McClay said.
This would be highly desirable for markets in China, other parts of Asia and the Middle East, McClay said.
'Grass fed now is increasingly wanted by consumers and they're willing to pay more.'
On sustainable products, Groundswell has been calling for New Zealand to exit the Paris Agreement on Climate Change.
McClay said that was not going to happen mainly because it would make exports to many markets untenable.
He believed Groundswell and others were worried about higher costs and lower production if they adopted sustainable measures.
'We've been really clear – we think through technology and other things we can meet these obligations without putting farmers out of business.'
Alternatives to farmers going into the Emissions Trading Scheme were being worked on and would be announced soon.
McClay said the requirement of reducing methane by 10 percent by 2030 was on track to be met.
'So it shows farmers are willing to do it but we have to lean heavily into technology rather than just planting trees.'
A number of products, known as methane inhibitors, have been developed already although they might have to overcome consumer resistance.
McClay said anything developed would have to go through rigorous scientific testing.
There would be a range of solutions developed and farmers would decide which ones they wanted to pick up.
'The overseas customers through the dairy company should be paying for this, not the New Zealand farmer.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
1News
3 hours ago
- 1News
PM wants NZ to get behind development, stem tide of Kiwis leaving for Oz
National leader Christopher Luxon has told his party's annual conference that the country needs to "say yes" more. Addressing about 550 delegates, MPs and supporters at the Air Force Museum of New Zealand in Christchurch yesterday, Luxon bemoaned "activists" who opposed housing developments, agriculture, cruise ships and mines. "If we're serious about keeping Kiwis at home, creating jobs and increasing wages for all New Zealanders, we can't afford to keep saying no to every opportunity that comes our way." Opposition parties have heavily criticised the Government for its economic policies and laid the blame at its feet for the 30,000 New Zealanders who moved to Australia last year, but Luxon said the opposition would make it worse. "Take a look at Australia," he said. "If they shut down their mining industry or their energy industry tomorrow, as Labour and the Greens want to do here, I guarantee you would see fewer Kiwis moving across the ditch." ADVERTISEMENT Prime Minister Christopher Luxon addresses 550 delegates at the annual National Party conference in Christchurch. Photo: RNZ / Giles Dexter (Source: Luxon's speech came hot on the heels of an announcement from the United States that it would increase tariffs to 15%. Still digesting the announcement and what it would mean for New Zealand exporters, Luxon acknowledged "challenging" global conditions. "We can't just batten down the hatches and hope for the best," he said. Luxon's speech made no mention of National's coalition partners, New Zealand First or ACT, or even the word "coalition" itself, although deputy Nicola Willis acknowledged the "energy" it took to keep Winston Peters and David Seymour under control. Instead, Luxon's speech was heavy on shout-outs to his National ministers and their policies, and also on blaming the previous government for the cost-of-living struggles New Zealanders currently faced. "In the years to come, immediate action on the cost of living isn't enough," he said. ADVERTISEMENT "The last government spent billions of dollars in failed handouts, only to watch inflation roar and the economy falter. "We have to keep our eyes on the prize." Echoing his speech at Monday's post-cabinet press conference, Luxon leaned on the economic policies the Government had introduced, such as tax changes, FamilyBoost and the removal of the Auckland Fuel Tax. "We're doing what we can," he said. The speech contained an announcement that the Government would make it easier to get a concession on Department of Conservation (DOC) land. "That means more certainty for businesses, less bureaucracy and much faster decisions, so the businesses that should be operating can get up and running." There would still be restrictions on some parts of the DOC estate. ADVERTISEMENT "Where it does make sense, we need to get to the 'yes' much faster - instead of being bogged down in process and uncertainty," Luxon said. Charges of $20-40 for foreign visitors to high-volume sites, such as Cathedral Cove, Tongariro Crossing, Milford Sound, and Aoraki Mount Cook, were being introduced, but New Zealanders would be exempt from the fees. Party president Sylvia Wood, who was re-elected at the conference, said the party would select candidates for the 2026 election shortly. Speaking to media afterwards, Luxon said there was more to do 18 months into the term. Before the 2026 election, Luxon said he expected to be judged on rebuilding the economy, restoring law and order, lowering the cost of living, and delivering better health and education. "Everyone's dealing with a really challenging global environment right now, but what we can do is control what we can control and that New Zealand has a plan. We can navigate some pretty choppy seas to get to the destination that we want to get to, but for that to happen, you've got to have the right people with the hands on the tiller, which is us." He committed to leading the party into the 2026 election and staying on another three years, if re-elected. ADVERTISEMENT While joking he wanted 100% of the vote, Luxon talked up National's relationship with ACT and New Zealand First. "I'm very proud of the fact that we've worked incredibly well with the three parties in a coalition in the way that we have," he said.
Scoop
6 hours ago
- Scoop
Land Reforms Aim To End Stalled Development In Papua New Guinea
Article – RNZ New legislation introduced by PNG's Deputy Prime Minister John Rosso would reform six land-related laws and which he says are essential., RNZ Pacific Senior Journalist Reforms to land laws in Papua New Guinea should ensure that landowners have more control over their land. New legislation introduced by the country's Deputy Prime Minister John Rosso would reform six land-related laws. Rosso says the changes are essential to securing the country's future and safeguarding the rights of landowners. Prime Minister James Marape commended Rosso for spearheading the reforms. 'Land is our people's greatest inheritance-our playground, our home, our heritage. Every Papua New Guinean is connected to a piece of land somewhere in this country. We must protect it,' Marape told parliament. RNZ Pacific spoke with its PNG correspondent Scott Waide about the government's motivations for the changes. (This transcript has been edited for brevity and clarity.) Scott Waide: The Lands Department has been, for want of a better word, terminally ill, for many years. It has had legislation that dates back to the colonial era. Papua New Guinea has moved on [and] moved forward with a lot of things. But the [land] legislations have been a hindering mechanism for any form of large scale development, like farming [and] real estate development. Those laws have been a hindrance to much of that development, and also the mobilisation of customary land. Previously, with the old laws, customary landowners could not adequately mobilise and get loans to develop their land, because the laws [and banks] did not recognise customary land ownership, and the accompanying attempts to allow for that development of customary land. It has posed a lot of complications in terms of mining development, logging [and] farming. The changes that have been introduced allow for both protection of customary landowners and the possibility of them venturing into large scale businesses. Don Wiseman: It has being brought in by the Deputy Prime Minister John Rosso. What specifically is he going to do? You have outlined the issues that have existed over land for a long time, but are they going to be overcome with this new legislation? SW: Yes, many of the problems that have existed for many, many years – from a very, very old system, a manual system, when the rest of the world is operating digitally. We have had instances where they have been dual titles issued, issued titles over land that have gone missing, because people are reproducing those titles manually. There is an electronic system that has been introduced as well within the Lands Department, and that is meant to reduce the instances of corruption that have long existed. A lot of the reforms have happened very quietly within the Lands Department. The other reforms that complement the development of housing, which is a big need in Papua New Guinea, support the development of customary land as well. So customary land owners can partner with government or with private organisations and develop housing, cheap housing for other Papua New Guineans. DW: Prime Minister James Marape says this will save the land that is still held, but it is clearly not going to undo a lot of the mistakes from the past, and they have been so many of those, particularly to do with the forestry and so on. SW: Yes, that is a an issue that I have spoken to a few land experts as well around. And that is going to be a huge challenge to undo all of that. The other side to it is that there are customary landowners who also sell their own land for cash. The legislations that have been put in place, in the some of the policies have actually banned the sale of customary land to individual parties as well. So, it offers some level of protection for customary land owners. There needs to be a lot of awareness as well for customary landowners to understand how the law benefits them, and that is going to also take a while.
Scoop
7 hours ago
- Scoop
Unleashing Growth On Conservation Land
Rt Hon Christopher Luxon Prime Minister Minister of Conservation Unleashing economic growth on one third of New Zealand's land will create jobs and increase wages across the country, Prime Minister Christopher Luxon and Conservation Minister Tama Potaka announced at the National Party Conference in Christchurch today. 'The Department of Conservation manages huge tracts of New Zealand, from the most pristine parts of our National Parks and the Great Walks to areas of grassland used for grazing,' Mr Luxon says. 'Many New Zealanders already run outstanding businesses on the conservation estate – from guided walks and ski fields, to filming documentaries, grazing sheep and cattle, or hosting concerts and building cell phone towers. 'But to do any of that, you need a concession – and the concessions regime is totally broken, often taking years to obtain or renew and leaving businesses in a cycle of bureaucratic limbo. 'Outdated rules mean we've got examples of modern E-bike users being turned away from potential touring opportunities because they have to be considered as proper vehicles. And tourism on the Routeburn is being held up because the trail crosses artificial boundaries, with different rules and different limits. 'So, in the spirit of saying yes to more jobs, more growth, and higher wages, today I can make two announcements. 'First, we're going to fix the Conservation Act to unleash a fresh wave of concessions – like tourism, agriculture, and infrastructure, in locations where that makes sense. 'At the same time, sites that are truly special to New Zealanders should be protected so we are giving DOC more support by introducing a charge for foreign visitors to access high volume sites,' Mr Luxon says. Tama Potaka says this will initially involve looking at four locations – Cathedral Cove / Te Whanganui-a-Hei, Tongariro Crossing, Milford Track, and Aoraki Mount Cook – where foreigners often make up 80 per cent of all visitors. 'Tourists make a massive contribution to our economy, and no one wants that to change. But I have heard many times from friends visiting from overseas their shock that they can visit some of the most beautiful places in the world for free. 'It's only fair that at these special locations, foreign visitors make an additional contribution of between $20 and $40 per person. 'For the conservation estate that will mean up to $62 million per year in revenue, which will be directly re-invested into those same areas, so we can keep investing in the sites that underpin so much of our tourism sector,' Mr Potaka says. Mr Luxon says, at the same time, there will be no charge for New Zealanders to access the conservation estate. 'It's our collective inheritance and Kiwis shouldn't have to pay to see it. 'If we're serious about keeping Kiwis at home, creating jobs, and increasing wages for all New Zealanders, we can't afford to keep saying no to every opportunity that comes our way,' Mr Luxon says.
