New Zealand, Australia speak with EU, Singapore on bolstering free trade amid volley of US tariffs
New Zealand's Prime Minister Christopher Luxon said one idea was for the EU and CPTPP to work together. PHOTO: REUTERS
New Zealand, Australia speak with EU, Singapore on bolstering free trade amid volley of US tariffs
WELLINGTON/SYDNEY - New Zealand and Australia said on April 10 they are each working with other nations on a possible joint response to shore up free trade against a barrage of US tariffs.
Prime Minister Christopher Luxon of New Zealand said he had spoken with the leaders of Singapore, Vietnam and Malaysia, as well as the head of the European Union's executive about international trade cooperation.
In a speech on April 10, he said one idea was for members of the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to work together.
International trade has been upended by US President Donald Trump who announced sweeping tariffs last week on dozens of countries, which were met by retaliatory tariffs by many of them, triggering massive volatility in markets.
In a stunning reversal on April 9, Mr Trump said he would temporarily suspend the hefty tariffs he had imposed on most countries.
Australia's Foreign Minister Penny Wong said government ministers had held discussions with South-east Asian nations, Japan, Korea, India and the EU about a joint response to US tariffs.
'There is a group of countries who see the benefit of free and open and fair trade,' she said in an interview with state broadcaster ABC.
In posts on X, Mr Luxon said he had separate phone calls with Singapore Prime Minister Lawrence Wong, Vietnamese Prime Minister Pham Minh Chinh and Malaysian Prime Minister Anwar Ibrahim on buttressing rules-based free trade to spur economic growth.
He said he also spoke to European Commission President Ursula von der Leyen about 'what the EU and New Zealand can do together to support the trade rules that underpin Kiwi (New Zealand) jobs and growth'.
PM Wong wrote on X that he agreed with Mr Luxon that as small, trade-dependent and like-minded countries, both Singapore and New Zealand must continue working together to uphold the rules-based order and free trade.
New Zealand, Singapore, Vietnam and Malaysia are members of the CPTPP, which also includes countries such as Australia, Canada, Chile, Japan, Mexico and Britain.
'One possibility is that members of the CPTPP and the European Union work together to champion rules-based trade and make specific commitments on how that support plays out in practice,' he said in a speech to the Wellington Chamber of Commerce.
Mr Luxon added he was heading to Britain later in April to meet Prime Minister Keir Starmer, to talk trade, security, and the geopolitical.
'We can't make the case for New Zealand sitting at home,' he said. 'We have to position ourselves as advocates both for our own economic interests and the institutions that underpin them.'
Mr Trump has imposed a 10 per cent tariff on Australia and New Zealand, the low end of his tariffs for all imports into the United States. Wellington and Canberra have both said they will not retaliate.
About 12 per cent of New Zealand's and 5 per cent of Australia's exports went to the US in 2024. REUTERS
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
2 hours ago
- Business Times
UK finance leads in foreign investment yet deals fall across Europe: EY
[LONDON] The UK's finance industry kept its lead over the rest of Europe in attracting foreign investment last year, although activity across the region slowed, according to professional services firm EY. The country attracted foreign investment for 73 finance projects last year, down by 32 per cent on the prior year, while in second place Germany, deal volumes fell 16 per cent to 32. Throughout Europe, volumes fell 11 per cent, EY found. Global investors also saw London as the most attractive European city for financial services foreign investment over the coming year, beating out Frankfurt and Paris, although at a national level, Germany was the preferred choice for the future. With US President Donald Trump's tariff announcements clouding the outlook, the poll found just 32 per cent were likely to invest in the US, compared to 39 per cent in the EU and 44 per cent for the UK. 'The strength and depth of the UK's financial services sector continues to capture global investor confidence – particularly as they navigate challenging market conditions,' said Martina Keane, managing partner at EY UK and Ireland financial services. However, she said competition remained fierce for available financing. BLOOMBERG
Business Times
5 hours ago
- Business Times
China says it may speed up rare earths application approvals from EU
[SHANGHAI] China is willing to accelerate the examination and approval of rare earth exports to European Union firms and will also deliver a verdict on its trade investigation of EU brandy imports by Jul 5, its commerce ministry said on Saturday (Jun 7). Price commitment consultations between China and the EU on Chinese-made electric vehicles (EVs) exported to the EU have also entered a final stage but efforts from both sides are still needed, according to a statement on the Chinese Commerce Ministry's website. The issues were discussed between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris on Tuesday, according to the statement. The comments mark progress on matters that have vexed China's relationship with the EU over the past year. Most recently, China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The ministry said China attached great importance to the EU's concerns and 'was willing to establish a green channel for qualified applications to speed up the approval process'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In a separate statement the commerce ministry issued later on Saturday, it said China was willing to further strengthen communication and dialogue with relevant countries on rare earth export controls as it recognised that demand from sectors such as robotics and EVs had risen. Brandy, EVs The ministry earlier said that Commerce Minister Wang during the meeting 'expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China'. Chinese anti-dumping measures that applied duties of up to 39 per cent on imports of European brandy – with French cognac bearing the brunt – have also strained relations between Paris and Beijing. The brandy duties were enforced days after the EU took action against Chinese-made EV imports to shield its local industry, prompting France's President Emmanuel Macron to accuse Beijing of 'pure retaliation'. The Chinese duties have dented sales of brands including LVMH's Hennessy, Pernod Ricard's Martell and Remy Cointreau. Beijing was initially meant to make a final decision on the brandy duties by January, but extended the deadline to April and then again to Jul 5. China's Commerce Ministry said on Saturday that French companies and relevant associations had proactively submitted applications on price commitments for brandy to China and that Chinese investigators had reached an agreement with them on the core terms. Chinese authorities were now reviewing the complete text on those commitments and would issue a final announcement before Jul 5, it said. In April, the European Commission said the EU and China had also agreed to look into setting minimum prices of Chinese-made EVs instead of tariffs imposed by the EU last year. China's commerce ministry said the EU had also proposed exploring 'new technical paths' relating to EVs, which the Chinese side was now evaluating. REUTERS
Straits Times
5 hours ago
- Straits Times
CDL pops after selling South Beach stake to Malaysians; SIA Engineering hits five-year high
CDL's share price rose 8.5 per cent over the week to close at $5.25 on June 6. PHOTO: ST FILE SINGAPORE – City Developments Limited (CDL) popped last week, after it announced it will sell its 50.1 per cent stake in the South Beach mixed project to its Malaysian partner's IOI Properties Group for about $834.2 million. The transaction is expected to result in a gain on disposal of about $465 million for the financial year ending Dec 31, 2025, which will be used to reduce bank borrowings and lower its debt, CDL said on June 4. The company had said in 2024 that it aimed to divest $1 billion in assets, and has announced about $600 million in divestments so far. CDL's share price, which had declined following a public dispute between executive chairman Kwek Leng Beng and his son, chief executive Sherman Kwek, over control of the company's board, rose 8.5 per cent over the week to close at $5.25 on June 6. SIA Engineering hit a five-year high of $2.98 on June 6, outperforming its average target price of $2.71 as investors ploughed into the stock. The aircraft maintenance provider has been a favourite stock pick among analysts, who have begun identifying companies that could benefit from an expected capital infusion into local stocks before the end of the year. As part of an effort to revive the stock market, the Monetary Authority of Singapore will be allocating $5 billion in seed capital to Singapore-based funds for investing in local stocks, and expects to shortlist suitable investment strategies by end-September. Analysts reckon the funds will likely be deployed before the end of 2025. SIA Engineering rose 8.5 per cent through to the week, and closed on June 6 at $2.94. Great Eastern to address share trading suspension Great Eastern Holdings on June 6 finally announced that minority shareholders will be able to vote on the delisting of the insurance company or a resumption of trading, nine months after its shares were suspended from trading on the Singapore Exchange (SGX) due to an insufficient public float of less than 10 per cent. If shareholders vote in favour of delisting, major shareholder OCBC Bank will make a final exit offer of $30.15 per share, valuing the remaining 6.28 per cent it does not own at $900 million. This revised offer represents a 17.8 per cent premium over OCBC's initial offer of $25.60 per share in May 2024. Independent financial adviser (IFA) Ernst & Young has assessed the new offer as fair and reasonable, after previously finding the earlier offer unfair but reasonable. The delisting decision will be made solely by minority shareholders, as OCBC – which already owns 93.72 per cent – will abstain from voting. The proposal requires at least 75 per cent approval at the upcoming extraordinary general meeting. Of the 6.28 per cent of shares that OCBC currently does not own, two prominent shareholder families – the Lees and the Wongs – own a combined 3 per cent. In January, it was reported that OCBC CEO Helen Wong had met them to persuade them to accept the earlier offer, though those efforts were reportedly unsuccessful. The Lee family, which has ties to OCBC's founding, is expected by some to support the delisting. However, if the Wongs choose not to vote in favour, the resolution would require unanimous support from the Lees and the rest of the minority shareholders to pass. If the delisting vote fails, shareholders will then vote on whether to resume trading of Great Eastern's shares. This resolution also requires 75 per cent approval. OCBC will be able to vote on this resolution. Under the trading resumption plan, Great Eastern will carry out a one-for-one bonus issue, giving shareholders a choice of receiving either regular voting shares or Class C non-voting shares. OCBC has indicated that if the delisting does not go through, it will vote in favour of the trading resumption and choose to receive Class C shares, at Great Eastern's request. This move would reduce OCBC's voting stake from 93.72 per cent to 88.19 per cent, restoring the minimum public float required for trading to resume. OCBC has also stated that if the delisting fails and trading resumes, it has no intention of making another offer for the remaining shares. Some analysts view the revised offer positively, noting that it is now considered fair, is in line with peer valuation multiples and offers a 17.8 per cent premium over the earlier bid. However, they also caution that if trading resumes, liquidity in Great Eastern shares is likely to be limited due to OCBC's more concentrated shareholding in the company. Other market movers Units of Keppel DC Real Estate Investment Trust (Reit) rose 2.3 per cent to $2.24 on June 6, after it was announced that the Reit will replace Hong Kong-based conglomerate Jardine Cycle & Carriage on the Straits Times Index (STI), following a quarterly review. The move, which will take effect on June 23, increases the total number of Singapore Reits on the index to eight, and is expected to increase their combined weight in the index to more than 10 per cent. Internet service provider NetLink NBN Trust will replace Keppel DC Reit on the STI's reserve list. The other four companies on the reserve list are CapitaLand Ascott Trust, ComfortDelGro, Keppel Reit and Suntec Reit. Oiltek International, a provider of vegetable oil processing technology, jumped by more than 9 per cent to 60.5 cents on June 6, when it successfully transferred its listing from the Catalist to the SGX mainboard. The company first listed in March 2022 at 23 cents per share. CEO Henry Yong said the move will enable Oiltek to gain greater visibility, liquidity and access to capital. Oiltek International jumped by more than 9 per cent to 61 cents on June 6, when it successfully transferred its listing from Catalist to the SGX mainboard. PHOTO: OILTEK Ms Lee Khai Yinn, a partner at SAC Capital, which was Oiltek's former sponsor, said the company's move to the mainboard is an example of how the Catalist can serve as a platform for emerging firms to scale and succeed. Shares of Singapore Paincare Holdings rallied last week after the Securities Investors Association (Singapore), or Sias, noted that a privatisation offer of 16 cents on May 27 undervalues the stock. Sias noted that Singapore Paincare was listed at 22 cents per share at a premium to its unaudited net asset value per share in July 2020 during Covid-19, when valuations were depressed and the STI was trading at around 2,500. It pointed out that the company should now be valued at a similar premium, at around 36 cents to 37 cents, given that the STI is trading at around 3,900, and 'well-managed healthcare companies generally trade at premiums to their net asset value'. In any case, minority shareholders of Singapore Paincare should wait for a report to be released by an appointed IFA before selling their shares on the open market, said Sias. Shareholders who do sell on the open market will not have recourse if the privatisation offer price is subsequently revised upwards, Sias added. It also reminded shareholders that 'for a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable'. The Catalist-listed counter closed on June 6 at 17.4 cents, up 11.5 per cent through the week. What to look out for this week All eyes will be on US consumer price index data for the month of May, which will be released on June 11. US consumers probably saw slightly faster inflation in May, notably for merchandise, as companies gradually pass along higher import duties, Bloomberg quoted analysts as saying. Despite US President Donald Trump's efforts to pressure the Federal Reserve into quickly lowering interest rates, Fed chairman Jerome Powell has indicated they have time to assess the impact of trade policy on the economy, inflation and jobs market. Join ST's Telegram channel and get the latest breaking news delivered to you.
