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.

Loading...

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.

  • ‘Taklub’ wins jury prize in Cannes
    ‘Taklub’ wins jury prize in Cannes

    The Yolanda-inspired film “Taklub” has won a special award at the Cannes Film Festival in France. The advocacy film, which had a successful premiere last Tuesday under the festival’s Un Certain Regard section, is directed by 2009 Cannes best director Brillante Mendoza and top-billed by Nora Aunor. The award cited the film’s sensitive portrayal of individuals and communities in the Philippines fighting to continue living despite natural disasters exposing them to suffering and death. …

  • Orphan tops chemical engineering board exam
    Orphan tops chemical engineering board exam

    A 21-year-old orphan from Capiz topped the chemical engineering board examinations held this month. Remington Salaya, a cum laude graduate of the Central Philippine University in Iloilo, ranked first in the board examinations with a score of 83.30 percent. Out of 405 chemical engineering graduates who took the exam in mid-May, 239 passed. …

  • A sunset party for APEC delegates
    A sunset party for APEC delegates

    Greeted by the beat of Ati-atihan drummers, delegates of the Asia-Pacific Economic Cooperation trade ministers meeting enjoyed a welcome dinner and cultural presentation at sunset yesterday. Dubbed FuntaSea, Shangri-La Boracay Resort and Spa’s Banyugan Beach was transformed into a fantasy island, complete with mermaids, fire dancers, and choreographed paraws (sailboat) representing the best of Boracay. With APEC meetings being held all over the Philippines, each presentation is conceptualized …

  • UN chief urges peaceful solution of sea dispute
    UN chief urges peaceful solution of sea dispute

    United Nations Secretary-General Ban Ki-moon called Friday for a peaceful solution to territorial disputes in the South China Sea, where China’s increased assertiveness has alarmed its smaller neighbors. In Manila, Presidential Communications Operations Office Secretary Herminio Coloma Jr. appealed to China to respect various international agreements on freedom of navigation and aviation. Coloma’s call came in the wake of an incident Wednesday where Chinese naval forces warned a US …

  • Phl seeks transparency, inclusivity in Asean-China Center
    Phl seeks transparency, inclusivity in Asean-China Center

    Philippine Ambassador to the Association of Southeast Asian Nations Elizabeth Buensuceso has called on participants of the ASEAN-China Center (ACC) brainstorming session to vigorously work on promoting ASEAN-China relations under the principles of inclusivity, transparency and centrality. The brainstorming session, attended by the ACC’s joint council and joint executive board members, also involved a midterm review of ACC’s work since its establishment in 2011. The ACC aims to promote …

  • Lebanon tightens rules on HSW repatriation
    Lebanon tightens rules on HSW repatriation

    Distressed Filipino domestic helpers in Lebanon may find it more difficult to return home. The government of Lebanon has tightened the rules on repatriation of distressed household service workers (HSWs), Labor Secretary Rosalinda Baldoz reported yesterday. Citing a report from the Philippine Overseas Labor Office (POLO), Baldoz said the Lebanese government opted to re-impose a previous policy requiring investigation into every case of HSWs who ran away from their employers and sought …

  • Army execs face attrition over promotion quota
    Army execs face attrition over promotion quota

    Dozens of Philippine Army officials may be removed from the service due to a promotion quota system in the Armed Forces of the Philippines, according to AFP chief Gen. Gregorio Pio Catapang. In a letter to Defense Secretary Voltaire Gazmin, he requested that the 30 percent promotion quota – which means that only 30 percent of those eligible for promotion in a given year will actually be promoted – in the Army be raised to 50 percent. Under the military’s attrition law, middle-grade officers …

  • Philippines backs support for small enterprises at APEC meet

    MANILA, Philippines (AP) — The Philippines' top trade official on Saturday called for support for the integration of micro, small and medium enterprises in global trade, which he said would help reduce poverty and inequality in the Asia-Pacific region. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options