Good potential for growth in trade with Turkey

A study of the economic relationship between New Zealand and Turkey shows there is good potential for growth in bilateral trade between our countries, Trade Minister Phil Goff said today at its launch. 

“The New Zealand-Turkey Economic Stocktake is the result of a ministerial New Zealand-Turkey Joint Economic Commission meeting in 2006 between myself and Turkey’s then Deputy Prime Minister Abdullatif Sener,” Mr Goff said.

“The stocktake has produced three conclusions. Firstly, that both New Zealand and Turkey’s economies have performed well in the past few years. Secondly, there is ample scope to grow our bilateral trade opportunities, and thirdly, the removal of trade barriers would greatly assist this trade growth.

“Turkey is one of the fastest growing economies in the OECD and its economic reforms and improvements to its regulatory regime have been impressive. This presents real opportunities for New Zealand businesses.

“Trade with Turkey, currently in Turkey’s favour, has almost tripled since 1990, to about $150 million last year. As the stocktake makes clear, two-way trade can grow further and grow faster.

“Agriculture is an important area where the relationship can develop. New Zealand wool, hides and skins have been our main exports to Turkey, but Turkey is also a significant consumer of dairy products and dairy consumption is forecast to grow substantially over the next decade.

“The stocktake identifies key lessons learned from New Zealand’s experience of agriculture reform and it is encouraging to see that reforms are underway in Turkey’s agriculture sector. The removal of tariffs and subsidies – such as 70-100 per cent for dairy products – is important if Turkey’s agriculture sector is to fully modernise. This would also, of course, considerably assist New Zealand’s primary sector exports.

“The stocktake also identifies valuable growth prospects in areas such as services, high technology and specialised manufacturing.

“One recent example of this is the strategic partnership between Fisher and Paykel and a Turkish manufacturer, which will allow Fisher and Paykel to distribute it appliances through the Turkish company’s extensive Middle East and European networks.

“Our education relationship is also developing. The University of Waikato has been active in developing linkages with Turkish universities, and both countries have recently signed a bilateral Education Cooperation Agreement, which provides a framework for closer policy engagement and information exchange.

“In other areas, our bilateral arrangement on cooperation on sanitary matters is ready for signing, we’re progressing negotiating a Double Taxation Agreement, and an air services agreement and working holiday scheme are under consideration,” Mr Goff said.

The New Zealand-Turkey Joint Economic Commission has met regularly since 1991.