NZ seeks global allies to safeguard free trade

April 10, 2025 / 9:54 AM

Sharjah 24: New Zealand Prime Minister Christopher Luxon has proposed forming a global coalition to defend free trade in response to rising protectionism and escalating tariff wars. Addressing an audience in Wellington, Luxon called on members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union to work together in promoting rules-based trade.

He said the United States’ decision to impose sweeping tariffs had unsettled financial markets. While a recent pause on the highest tariffs—excluding those on China—was a welcome development, Luxon cautioned that the global retreat from trade posed deeper, long-term risks.

Action against export curbs

Luxon suggested the proposed alliance could focus on preventing unjustified export restrictions and ensuring that any retaliatory measures align with existing trade rules. He said that collective action from major economies could help preserve the integrity of global trade and secure supply chains.

Global outreach planned

Luxon added that he would soon begin outreach to international leaders to explore how to strengthen the global trade framework. He also plans to travel to the UK this month to meet with British Prime Minister Keir Starmer to discuss trade and regional security.

He expressed concern over what he described as the most significant threat to the global trade system since the General Agreement on Tariffs and Trade (GATT) was signed in 1947.

Despite challenges, Luxon emphasised that New Zealand would not retreat. He described the situation as "confronting" but said the country must continue to engage globally and compete on the world stage.

Meanwhile, former US President Donald Trump maintained a 10 percent baseline duty and sharply raised tariffs on Chinese imports to 125 percent, citing Beijing’s retaliatory tariffs as justification.