New Zealand to double exports to PH

New Zealand expects to double its merchandize exports to the Philippines by 2025 to NZ$1.5 billion, approximately US$1.3 billion, from NZ$750 million in 2013 in a bilateral trade relationship that is heavily in favor of the land of the “kiwis.”

According to New Zealand Trade Attache to the Philippines Hernando Banal II this target is part of a business growth agenda for its exports to account for 40 percent of total GDP from the current 25 percent.

Despite this one-sided growth is a huge trade deficit suffered by the Philippines, whose exports in 2013 only reached NZ$150 million, $129.951 million, for total bilateral trade of NZ$900 million. New Zealand exports to the Philippines have been growing annually at 11.3 percent, but the Philippines suffered a NZ$612-million trade deficit.

The Philippines is now New Zealand’s 12th largest export destination.

Food and beverage products made up around 80 percent of total exports to the Philippines in 2013 comprising largely of milk powder, cream, butter and cheese.

Banal explained that the sheer number of Philippine population of 100 million as against New Zealand’s 4.2 million people would be a challenging factor in the balancing of the bilateral trade.

New Zealand Ambassador Reuben Levermore, however, explained the bilateral trade should have reached NZ$1 billion including the services sector from tourism, IT and engineering services, but the figure does show that because it is difficult to capture services exports.

“It does not have to be more bananas,” Levermore said. Bananas and electronics  account for the bulk of Philippine exports to New Zealand.

He, however, said there are more ways to boost Philippine exports to New Zealand.

He cited the growing services sector of the Philippines stressing that more small and niche New Zealand IT and innovation companies are opening support and back office operations in the Philippines.

There are 100 New Zealand companies exporting to the Philippines, but there are others that have not been captured by the embassy. These companies have the potential to set up services operations here to support their exports also.

The recent New Zealand trade mission yielded new agreements in technical and consulting services related to geothermal energy, IT and healthcare systems. Lately, New Zealand shifted its exports to the Philippines from low value commodities like dairy powder, to more high-end products like yogurt and ice cream. Manufacturing great meat has also made way for the entry of premium-cut meat.

On tourism, Levermore noted that both countries have concluded an Air Services Agreement in March this year paving the way for local airlines to conduct direct flights between them.

Even in tourism, there are more Filipinos travelling to New Zealand than New Zealanders visiting Manila. Of the 25,000 two-way tourists, there are 15,000 Filipinos travelling to New Zealand as against 10,000 New Zealanders travelling to the Philippines.

The higher number of Filipinos going to New Zealand is largely due the growing number of Filipino immigrants, who are now the largest southeast Asian ethnic community in that country.

Another opportunity to improve two-way trade is the Free Trade Agreement between Asean and Australia-New Zealand. The Philippines bilateral trade level is also behind Singapore, Malaysia, Thailand and Vietnam.

“We have FTA so that should be a head start,” Levermore added.

Levermore blamed the low-level figure to the lack of awareness between two countries. To further promote bilateral relations between the two countries, the New Zealand embassy here will hold a three-day food and beverage trade fair starting this Friday.


Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • First China air force drills in 'far offshore' Pacific
    First China air force drills in 'far offshore' Pacific

    China's air force has carried out its first ever military drill over the western Pacific Ocean, state media said, highlighting Beijing's growing military reach. Several aircraft from China's People's Liberation Army (PLA) on Monday flew over the ocean via the Bashi Channel, which runs between Taiwan and the Philippines, the official Xinhua news agency said. "This is the first time that the PLA Air Force conducted such drills in an airspace far offshore from Chinese coastlines," Xinhua cited …

  • Shorter hours for rail lines tomorrow
    Shorter hours for rail lines tomorrow

    The Metro Rail Transit (MRT), Light Rail Transit (LRT) and the Philippine National Railways (PNR) will have shorter hours tomorrow for the replacement of defective railroad tracks during the Holy Week. …

  • Noy increases allowances for cops, soldiers
    Noy increases allowances for cops, soldiers

    President Aquino has signed a joint congressional resolution raising the daily subsistence allowance for both members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP). Presidential spokesman Edwin Lacierda said Aquino signed last March 27 the merged Joint Resolution 2 of the Senate and Joint Resolution 26 of the House of Representatives. Speaking to reporters, Lacierda yesterday said the daily allowances of police officers and soldiers were raised from P90 …

  • Oil firms raise gas prices today
    Oil firms raise gas prices today

    This year’s Holy Week break will be accompanied by an increase in local pump prices after oil companies announced yesterday a P1.10 per liter hike for gasoline and P0.60 per liter for diesel effective today. “Phoenix Petroleum Philippines will increase the prices of gasoline by P1.10 per liter and diesel by P0.60 per liter effective 6 a.m. of March 31, 2015 to reflect the movements in the prices of refined petroleum products in the international market,” said Phoenix Petroleum, an independent …

  • DFA denies dropping Phl claim to Sabah
    DFA denies dropping Phl claim to Sabah

    The Philippines has never offered to drop its Sabah claim in exchange for Malaysia’s support for Manila’s arbitration case against China over the West Philippine Sea issue, the Department of Foreign Affairs (DFA) said yesterday. “In the context of our friendly bilateral relations, our two countries have been for years exchanging ways on how to address the issue of the extended continental shelf (ECS) in the South China Sea,” Foreign Affairs spokesman Charles Jose said in explaining the DFA’s …

  • Pagcor remits record high P5 B to national treasury
    Pagcor remits record high P5 B to national treasury

    The Philippine Amusement and Gaming Corp. (Pagcor) has remitted P5 billion in cash dividends to the National Treasury, fully settling all its arrears incurred in the last several years. Pagcor chairman and chief executive officer Cristino Naguiat Jr. said with this year’s remittance, the state-owned gaming firm has fully settled all remaining arrears in cash dividends that were incurred by the previous administration since 2005. Pagcor’s cash dividends to the National Treasury under its …

  • Maysak moves closer to Phl
    Maysak moves closer to Phl

    The typhoon with international name Maysak slightly accelerated as it moved closer to the Philippines yesterday, threatening to dump rains over eastern Luzon this weekend, the state weather bureau said. Rene Paciente, senior weather forecaster of the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), said Maysak was spotted at 2,175 kilometers east of Mindanao as of 1 p.m. yesterday. Paciente said based on their latest forecast, Maysak is likely to affect …

  • Phl gets P2-B climate projects from Germany
    Phl gets P2-B climate projects from Germany

    The Philippines is getting 41 million euros or around P2 billion from the International Climate Initiative (ICI) of Germany that will fund 10 bilateral projects to address the impact of climate change. Climate Change Commission (CCC) vice chairman Lucille Sering yesterday met with Norbert Gorissen – head of the International Climate Finance of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety – to discuss the projects, some of which will be …


Should Aquino be held accountable over the Mamasapano operations?

Poll Choice Options