As one of the more tranquil places to live and work, Taupo presents itself as a place which could almost exist within its own ecosystem of fishing, tramping, hot water springs, welcoming cafes, water sports, mountain biking etc. But just as Donne's prose stated "No man is an island, entire of itself, every man is a piece of a continent, a part of the main" so too is Taupo 'a part of the main' in the sense that New Zealand's international connections to the rest of the world are as important to Taupo as they are to any other NZ city or town.
Some component parts of New Zealand’s international connections will resonate easily in terms of their relevance to Taupo’s own vibrancy - for example tourism flows into the region...the value of working holiday scheme (WHS) workers assisting in cafes, pubs and other outlets around town…and our ability to attract migrants able to fill critical skill shortages. These people-flow dimensions all influence, albeit do not determine, the potential for the Taupo region itself to prosper and grow.
But perhaps not so immediately recognised is another part of the country’s international connections - namely New Zealand's array of Free Trade Agreements (FTAs) - and the contribution they make to shoring up the Taupo region and its related economy.
One prominent pillar of the Taupo district's economy is agriculture - particularly (but not exclusively) dairy, beef and forestry - and the conclusion this year of two very significant FTAs is noteworthy just as much for the Taupo region as for the country as a whole.
The first of these 'new' Free Trade Agreements is with the United Kingdom - the 6th largest economy in the world which of course has strong historic, cultural, people-to-people links to NZ. The significance of getting better, easier, more predictable access to this ‘traditional’ market for our exporters cannot be overstated. As significant, indeed even more significant, is the other FTA recently added to the 'pot' - namely that with the European Union (the EU) - a single market made up of 27 countries with a combined population of over 450 million wealthy and discerning consumers.
It is real credit to the Ministry of Foreign Affairs and Trade, which negotiates these FTAs on behalf of the Government, that it pulled off both these agreements at a time of massive challenge (and distraction) for Europe...a region emerging from being, at one time, the epicentre of the Covid crisis, adapting to a new world occasioned by Brexit, grappling with a horrific land war on its eastern flank impacting, inter alia, supply chains, energy security as well as fuelling inflation. Given this ‘busy’ space, getting dedicated air-time to advance our interests was both a Herculean task and far from guaranteed. But they got there…and the results are considerable. Taken together, both these FTAs offer improved access - among other areas as well - for our dairy, beef and sheep sectors, all sectors particularly important to the Taupo region. These two agreements will give us more choice, going forward, around markets with which we can trade profitably and with certainty. This has flow-on benefits, in turn, to the many light agri-business industries supporting the agriculture sector, many of which have a strong presence in and around Taupo.
These two new FTAs, once they come into force, will join an array of older FTAs built up over the years including those we have, inter alia, with Australia, the 10 countries of ASEAN in South East Asia, with China, with Hong Kong and via CPTPP with the new markets of Japan, Canada and Mexico. This growing collective of FTAs underpins New Zealand's economy - offering us a better future than we would otherwise enjoy - including for the Waikato/Bay of Plenty region.
Rupert Holborow
(Disclaimer - the writer formerly worked for the Ministry of Foreign Affairs and Trade).
