Rajdeep Roy Chowdhury

212025

Introduction
New Zealand is an island country in the southwestern Pacific Ocean. The
country geographically comprises two main landmasses that of the North
Island and the South Island and numerous smaller islands
New Zealand is situated some 1,500 kilometres east of Australia across
the Tasman Sea and roughly 1,000 kilometres south of the Pacific island
areas of New Caledonia, Fiji, and Tonga
Because of its remoteness, it was one of the last lands to be settled by
humans
The country's varied topography and its sharp mountain peaks, such as
the Southern Alps, owe much to the tectonic uplift of land and volcanic
eruptions
New Zealand's capital city is Wellington, while its most populous city is
Auckland
New Zealand is a constitutional monarchy with a parliamentary democracy
Elizabeth II is the Queen of New Zealand and the head of state
The Queen is represented by the Governor-General, whom she appoints on
the advice of the Prime Minister

Auckland

Economy
New Zealand has a modern, prosperous and developed market economy with an
estimated gross domestic product (GDP) at purchasing power parity (PPP) per
capita of roughly US$28,250
The currency is the New Zealand dollar, informally known as the "Kiwi dollar
New Zealand was ranked sixth in the 2013 Human Development Index, fourth in
the The Heritage Foundation's 2012 Index of Economic Freedom, and 13 th in
INSEAD's 2012 Global Innovation Index
Historically, extractive industries have contributed strongly to New Zealand's
economy, focussing at different times on sealing, whaling, flax, gold, kauri gum,
and native timber
With the development of refrigerated shipping, meat and dairy products were
exported to Britain, a trade which provided the basis for strong economic growth in
New Zealand
In 1973 New Zealand's export market was reduced when the United Kingdom
joined the European Community and other compounding factors, such as the 1973
oil and 1979 energy crisis, led to a severe economic depression
By 1982 New Zealand had the lowest per-capita income of all the developed
nations surveyed by the World Bank
Since 1984, successive governments engaged in major macroeconomic
restructuring (known first as Rogernomics and then Ruthanasia), rapidly
transforming New Zealand from a highly protectionist economy to a liberalised
free-trade economy

Trade

New Zealand is heavily dependent on international trade, particularly in

agricultural products
Exports account for a high 24 percent of its output, making New Zealand
vulnerable to international commodity prices and global economic slowdowns
Its principal export industries are agriculture, horticulture, fishing, forestry and
mining, which make up about half of the country's exports
Its major export partners are Australia, United States, Japan, China, and the
United Kingdom
The service sector is the largest sector in the economy, followed by
manufacturing and construction and then farming and raw material extraction
Tourism plays a significant role in New Zealand's economy, contributing $15.0
billion to New Zealands total GDP and supporting 9.6 percent of the total
workforce in 2010
Wool was New Zealands major agricultural export during the late 19 th century

Milford Sound Fiordland National Park

Lake Matheson

Outlook and Challenges

The New Zealand economy has recently been perceived
as successful. However, the generally positive outlook
includes some challenges
New Zealand income levels, which used to be above
much of Western Europe prior to the deep crisis of the
1970s, have never recovered in relative terms
Income inequality has increased greatly, implying that
significant portions of the population have quite modest
incomes
New Zealand has a very large current account deficit of
89% of GDP. Despite this, its public debt stands at
33.7% (2011 est.) of the total GDP, which is small
compared to many developed nations

New Zealand and Trans-Pacific

Partnership (TPP)
The Trans-Pacific Partnership (TPP) is a proposed regional free trade agreement
(FTA) among 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia,
Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam
Five of New Zealands top 10 trading partners (1st Australia, 3rd US, 4th
Japan, 6th Singapore, and 8th Malaysia) are included in TPP negotiations. The
TPP negotiating parties account for 45 per cent of New Zealands total trade.
A study by the East West Centre predicts an agreement could generate the
following GDP and export gains from lowering of trade barriers and regional
integration benefits:
estimated GDP gains for New Zealand of US$2 billion in the year 2025 (a 0.9% increase in
GDP);
estimated export gains for New Zealand of US$4.1 billion in the year 2025 (a 6.8% increase
in exports); and
further income gains (up to US$2.1 billion) are estimated from a lift in the terms of trade and
greater consumer access to goods and services.

Specific benefits for New Zealand businesses from TPP are likely to include:
Tariff elimination and reduced compliance costs for goods exporters;
More opportunities to access government procurement contracts;
Reduced barriers to services trade and investment.

Source: http://mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/Trans-Pacific/index.php

Source:
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/11/everything-you-need-to-know-about-the-trans-pacific-partnership /

New Zealand - India Free Trade

Agreement
India is New Zealand's 15th-largest bilateral trading partner. For the year
ended June 2013, overall goods trade between the two countries was
over NZ$ 1.1 billion. Of that total, $725.912 million was New Zealand
exports going to India, making India our twelfth-largest export
destination
The New Zealand Government is implementing an interagency strategy
that is working towards India being a core trade, economic and political
partner for New Zealand by 2015
The NZ Inc India Strategy, launched by Prime Minister John Key in
October 2011, has several broad economic goals that a Free Trade
Agreement (FTA) will help achieve. These are:
Grow merchandise exports to at least NZ$2 billion per year by 2015;
Grow services trade with India by an average of 20 percent a year;
Improve the bilateral investment framework and facilitate growth in the
investment
relationship; and,
Attract and retain skilled migrants from India who are able to make an effective
contribution to New Zealands economic base.
Source: http://mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/India/index.php

THANK YOU!