The country needs to start thinking about and pursuing new free trade deals, starting with two advanced European economies, according to a new report.
The report commissioned by the International Business Forum rated the top prospects for free trade agreements as Switzerland and Norway. Photo: 123RF
The International Business Forum (NZIBF) commissioned the report from Sense Partners to explore the prospects and potential targets for new trade agreements (FTAs).
The report said New Zealand has no preferential access to about 40 percent of the world economy and consumers, although two way trade flows are still worth nearly $19 billion dollars.
NZIBF executie director Stephen Jacobi said New Zealand had done well over the last 30 years to open new markets around the world, but the wave of trade liberalisation ushered in after the conclusion of the Uruguay Round of the late 1980s and early 1990s was coming to an end.
"[There is] work to do to finish existing negotiations, upgrade existing agreements and to make progress with key partners where FTAs have proved elusive like the United States and India. That's why we need to look to the future."
The report has come up with a list of 22 other countries, based on the size of economies, income, demand for goods, tariff levels, and sensitive sectors such as agriculture.
It rated the top two prospects as Switzerland and Norway, followed by Morocco, Israel and Turkey.
Other promising potential free trade partners include emerging economies such as South Africa, Ghana, Brazil, Iran, and select targets in Africa, Central and South America, the Caribbean and Asia.
"Exporters will all have their own lists but what is important is that we start the process of thinking about future partners and how best to engage with them, whether on the basis of high quality and comprehensive FTAs or other means," Jacobi said.
"We should be thinking, too, both about our traditional areas of export strength and also how to include new sectors like services, digital and the creative economy as well as the needs of Māori business."
Then report said commercial gains from many future FTAs would likely be highly concentrated on certain firms or sectors, and it raised the question whether New Zealand needed alternative approaches to negotiating trade deals that were more based on industries.
It accepted that geopolitics might get in the way of some deals, and cautioned "it's a hard road finding the perfect free trade partner".