An overview of an Australian flag is seen in front of the Great Hall of the People on April 9, 2013 in Beijing, China.
Feng Li | Getty Images
SINGAPORE – Nationalism is not the way to go in diplomatic relations, New Zealand’s trade minister told CNBC, while calling for more multilateral trade relations and global ties.
In fact, the world needs to build its “general security” – especially now during the Covid-19 pandemic, Damien O’Connor said on Wednesday for “Squawk Box Asia” as part of CNBC’s coverage of the World Economic Forum’s Davos Agenda.
“Nationalism is not the way to go – we hope to build multilateral trade and diplomatic relations around the world and play our part,” added O’Connor, who is also the country’s agriculture minister.
In recent years, protectionism and nationalism have taken the lead, as countries such as the US and some in Europe focus mainly on their economies and domestic problems, sometimes to the detriment of cooperation and collaboration with others.
Experts called the strained ties between the US and China the new “Cold War” as tensions spilled from the trade front into technology and other fields.
They also warned that the coronavirus pandemic will trigger more protectionist policies between countries as it tries to limit the economic damage of the virus.
On Tuesday, New Zealand signed a trade agreement with China, which gives kiwi exports greater access to the Asian economic giant. The agreement paves the way for the elimination or reduction of tariffs on many New Zealand goods, from dairy and seafood to timber.
Offer mediation
The deal comes at a time when China is still embroiled in tense trade tensions with countries such as Australia and the United States.
Regarding the timetable, O’Connor remarked: “It sends a very clear signal to the world that China, and we ourselves, support robust trade agreements … which are backed by good laws.”
China-Australia relations have deteriorated since last year after Canberra launched an international investigation into China’s management of the coronavirus pandemic. As a result, Beijing has been targeting a growing list of products imported from Down Under for months – setting tariffs on wine and barley and suspending beef imports.
New Zealand has offered to mediate an armistice between the two countries, saying this year’s Asia-Pacific Economic Cooperation (APEC) summit could be an opportunity for New Zealand to bring both sides to the table, according to Reuters.
Regarding the New Zealand mediation offer, O’Connor said: “We have a mature relationship … with China and we have always been able to raise concerns.”
“I can’t speak for Australia and the way it conducts its diplomatic relations, but clearly if it were to follow us and … talk … (with) a little more diplomacy from time to time and be careful with the wording … hopefully (they) can be in a similar situation, “he said
Meanwhile, Australian Treasurer Josh Frydenberg told CNBC on Monday that he would continue to advocate for his national interests, but would like to improve strained relations with China.