Green co-leader Metiria Turei struggled to articulate her party’s position on trade in a tough interview with Guyon Espiner on Q&A this morning. She didn’t answer Espiner’s questions on whether or not the Greens supported CER or the China trade agreement.
Labour’s approach to the China agreement is unequivocal:
1. New Zealand’s long term prosperity relies on our firms successfully selling into international markets, particularly in the dynamic East and South Asian economies. We owe it to future generations.
2. China is becoming a super power. Trade (and political, diplomatic, cultural and people-to-people) engagement by NZ and other countries is a necessary part of bringing China into the international community, and fostering its commitment to international law and mulitilateralism.
3. New Zealand can and does use the access we get from our special trade and political relationship with China to raise issues of human rights.
Personally I’ve always been of the view that boycotting trade with China because they don’t share our views on labour, human rights and the environment is not tenable. Chinese workers deserve jobs just as much as workers anywhere else.
Trade liberalisation can harm (for example by reducing the policy space to protect infant industries, or forcing countries to open up sensitive sectors to foreign competition) but it can also help (for instance by getting rid of rich-country protectionism that damage the livelihoods of farmers in poor countries and New Zealand).
Not only is trade the only way that a small isolated country like New Zealand can prosper, it is also one of the most important ways the world’s poorest nations can work their way out of poverty. Trade is not inherently good or bad. It depends how the rules are written, who the winners and losers are, and how trade-offs are managed.
The challenge for New Zealand is to balance the gains we get from liberalising agricultural trade and opening up important new markets, against possible concessions that might reduce our own policy options (for instance the long expected opposition of the US to Pharmac). In the Pacific we and the Australians need to balance the gains of helping Pacific states export more, against liberalisation that could reduce the policy options of governments to protect sensitive sectors.
What do you think?