Future perspectives: economic powerhouse

• Economic partnership agenda

To Kiwi eyes the Kansai is a large megalopolis: tall buildings, airports, ports and hi-speed railway, shops and factories, crowds of people all moving in an orderly and business-like fashion - with universities, scientific institutions, museums and galleries, some exquisite heritage buildings and a fringe of attractive countryside. A huge commercial and industrial power-house.

New Zealand traders were exploring the Kansai in the late 1950s. We signed a Trade Agreement with Japan in 1958. We made our mark with a very successful pavilion in the Osaka World Expo 1970.

Looking back, we have imported from the Kansai a range of new and high-tech products, ranging from trucks and cranes to cell-phones, which have benefited – and modernized - virtually every household in New Zealand. Just look at the equipment you use and consider where it came from.

In return we have provided things that Japan has needed: food, wool and wood –and - along the way have introduced them to lamb and kiwifruit.

Both sides have developed and encouraged a range of educational exchanges at both secondary and tertiary levels, and a two-way tourist trade.

New Zealanders have gained insights into a society similar in fundamentals – families, schools, work, art and leisure – but significantly different in patterns of behaviour.

We’ve learned to communicate and to understand the differences.

And Japanese have “discovered” New Zealand.

Looking forward, we have to accept that trade patterns will change over time. There will be new products, new inventions, different needs and alternative sources. Though the major Kansai enterprises may be expected to re-invent themselves to meet new situations, history is full of ups and downs. Competition will never cease; it keeps us alive and alert. Japan may come to purchase its food elsewhere. More joint enterprises will be possible.

Our own societies, our needs, interests and aspirations will inevitably be changing too.

But contact between communities and societies has now been established, and communication is becoming easier all the time. More and more the voice of the individual is being heard. The challenge for the people of the Kansai and New Zealand is to demonstrate that they are good citizens of the world, and that they understand the importance of working together with the people of other countries to overcome common problems, poverty, disease, climate change – and armed conflict.

Having achieved some understanding of each other, being comfortable together, in addition to maintaining that relationship we must be prepared to extend our range, whether on a regional basis or through the United Nations or other world institutions.

In fifty years we have established a useful foundation. Now we must build on it.

We are all looking for progress, for better conditions, for our people and for the world’s people. This calls for new ideas, new science, leadership, sympathy and toleration, new partnerships and flexibility. We encourage innovation, and we are concerned to ensure sustainability.

There are political, social and economic agenda items for the years ahead. Consider some of them now, and others later.

Economic partnership agenda

So what is on the economic partnership agenda now, and what can current and future generations do to build Japan New Zealand trade, thus adding to our economic growth, and making more of our other objectives possible?

Consider the significance of the major trade items – and think about the changes that could occur with some of them. Why are some of the exports and other foreign exchange earning items – such as some of the food and fibre products, tourists, and students studying here – declining? Are these just the normal ups and downs in international business?

What will happen to our biggest export to Japan – aluminum – if new commercial agreements are not made to sell hydro power to the Bluff smelter?

How could the two countries benefit from sharing their interests in food production and marketing?

Can we identify possible initiatives to energise and strengthen the relationship. Maybe different groups - government, business and research - can work together in particular partnerships, such as seeking opportunities in the “functional foods revolution”?.

There are scientific, market, industry structure and strategic planning questions worth considering.

Japanese ministers have said their country aspires to double its food exports. NZ agricultural officials, traders and researchers have experience of working with each other. New Zealand has previously assisted international food businesses, such as in growing kiwifruit in Japan, dairy development in Chile, and supply chains for a range of foods.

There could be greater effort to foster movement of people and ideas between Japan and New Zealand.

We could examine ways to strengthen the bilateral economic relationship between New Zealand and Japan, taking a forward looking and fresh look, as confirmed in the Joint Statement issued by Prime Ministers of the two countries in June 2005. We should identify possible initiatives to energise and strengthen the relationship.

From Anthony Haas, Asia Pacific Economic News service