Business analyst working for a leading independent New Zealand business

Sample Solution

What factors affect New Zealand's food exports? And how?

The following factors affect New Zealand's food exports:

• FTA: Free trade agreements (FTAs) can help New Zealand export more food to its trade partners by reducing tariffs and other trade barriers.
• Exchange rate: A weak New Zealand dollar makes New Zealand exports more competitive in international markets.

Full Answer Section

• Economic growth: Strong economic growth in New Zealand's trading partners leads to increased demand for New Zealand exports.
• Weather: Favorable weather conditions in New Zealand lead to increased agricultural production, which can boost food exports.
• Food safety: New Zealand has a reputation for high food safety standards, which makes New Zealand exports more attractive to buyers.

2. Can Free Trade Agreement (FTA) help New Zealand export more food to its trade 4 partners?

Yes, FTAs can help New Zealand export more food to its trade partners. For example, the China-New Zealand FTA, which came into force in 2008, has helped to increase New Zealand's exports of dairy products, meat, and wine to China. The CPTPP, which came into force in 2018, is also expected to boost New Zealand's exports of food to its member countries, which include Australia, Canada, Japan, Mexico, Peru, Chile, and Vietnam.

3. How has COVID-19 affected New Zealand exports? (e.g. overall vs. each export item)

COVID-19 has had a negative impact on New Zealand's exports overall. In 2020, New Zealand's exports fell by 10.9% from the previous year. This was the largest annual decline in exports since 2009.

The impact of COVID-19 on New Zealand's exports has varied by export item. Some export items, such as dairy products and meat, have been relatively resilient to the pandemic. However, other export items, such as tourism and education, have been hit hard.

4. Can FTA offset the negative effect of COVID-19 on New Zealand exports? Or Can FTA boost the positive effect of COVID-19 on New Zealand exports? If so, how?

FTAs can help to offset the negative effect of COVID-19 on New Zealand exports by reducing tariffs and other trade barriers. This can make New Zealand exports more competitive in international markets and help to boost exports.

FTAs can also boost the positive effect of COVID-19 on New Zealand exports by opening up new markets for New Zealand exporters. This can help to increase exports and offset the decline in exports to traditional markets.

For example, the CPTPP is expected to boost New Zealand's exports by $1.3 billion per year. This is expected to be driven by increased exports of dairy products, meat, and wine to CPTPP member countries.

In conclusion, FTAs can help New Zealand to export more food to its trade partners and offset the negative effects of COVID-19 on exports.