Australian state looks to New Zealand for export lessons
An Australian state is looking to follow the blueprint of neighbouring export powerhouse New Zealand in a bid to turn its economy around. Steven Marshall’s Liberal Government won the March 17 state election, ending 16 years of Labor Party rule in South Australia. Still in his first 100 days of office, Marshall has vowed to lower taxes, streamline approval processes and grow exports. Several aspects of his plan seek to follow the success of New Zealand when John Key was Prime Minister from 2008-2016. During this time Key lifted the country out of recession forged strong export ties with China and helped develop several strong export industries. Led by the dairy industry, six of New Zealand’s top seven export categories are food or drink related and include meat, fruit, seafood and wine. New Zealand’s exports hit a record high of A$50.2 billion (NZ$53.7 billion) in 2017, up 11 per cent on 2016 and beating the previous record of 2014. Despite having about 7 per cent of Australia’s population, South Australia only accounts for 4 per cent of Australia’s total exports. Marshall said this compared to 7.4 per cent of Australia’s merchandise exports in 2002. Like New Zealand, South Australia’s major export categories are dominated by primary industries such as wheat, meat and wine. China is the biggest trading partner of both jurisdictions with Asia accounting for more than half of all exports in both economies. However, Marshall said South Australia’s exports to China had lost ground against other Australian states in recent years. He said New Zealand’s success was in pinpointing sectors, such as the dairy industry, and aligning them with targeted export markets. He said he had already met with three of South Australia’s largest red meat exporters with a view to increasing their opportunities. “New Zealand had a […]