Eric Roy: Confidence High in Kiwi Trade

Summary

New Zealand trade figure Eric Roy told Hokonui's The Muster programme that confidence in New Zealand's exports to China and Asian markets is strong. He spoke after unveiling a New Zealand pavilion within the Chaoshan Group, a Zhejiang-based organisation that promotes New Zealand-China business links. Roy said New Zealand's international trade history spans just over 200 years: the first 100 years were built around Britain and Europe, the post-war period benefited from ties with the United States, and the focus has now shifted to Asia, where growing middle classes in China and India are driving demand for New Zealand products.

He said Chinese migrants began leaving in the 19th century, some to New Zealand's goldfields and later to Singapore, the United States, the Caribbean and Australia; after China opened up in the mid-1970s, these diaspora communities used their capital and connections to form the Chaoshan Group. Some 20,000 people are linked to the Guangzhou-Auckland network alone. Roy said the New Zealand pavilion sits alongside the main exhibition space, staffed by Chinese-New Zealanders showcasing products and services, with Canada, the United States, Australia and Germany also taking part and New Zealand at the centre.

He cited Chinese tourism to New Zealand as a key growth area, with China currently around New Zealand's third or fourth-largest source market. Roy also said New Zealand was an early mover in securing free trade agreements with China and India, putting it ahead in Asian markets, and stressed the need to avoid reliance on any single market by keeping multiple export channels open so that products can be redirected elsewhere if trade friction arises in one market. He noted wool auction prices had recovered, signalling the wool industry may be set for renewed growth.

Commentary

Eric Roy's remarks at the opening of the Chaoshan Group pavilion reflect a deeper shift in New Zealand's trade strategy. A former MP and veteran agricultural representative, Roy highlighted demand from Asia's rising middle class, particularly the scale of the Chinese and Indian markets. What makes the Chaoshan Group notable is its diaspora network: Chaoshan people who left China during the 19th-century gold rushes accumulated capital across Southeast Asia, North America and the Caribbean, then returned to invest after China's opening, creating a transnational business web.

The New Zealand pavilion's position at the heart of the group means small and medium-sized enterprises can plug directly into established distribution channels along China's southeast coast rather than starting from scratch. For NZ SMEs, this is more practical than relying solely on e-commerce platforms or trade fairs: Chaoshan merchants have deep wholesale and retail reach in food and consumer goods, and steady demand for dairy, honey and wool products from Oceania. But Roy's comments also carry an implicit risk warning.

He acknowledged New Zealand had not been "as active as expected" and stressed the danger of depending on a single market. China's import policies for some agricultural products remain volatile, while India, despite its potential, still presents non-tariff barriers and supply-chain infrastructure gaps. The recovery in wool prices is a positive signal, but global substitution by synthetic fibres and animal welfare standards may cap long-term growth.

SMEs should look to diaspora networks such as the Chaoshan Group for B2B opportunities while keeping export flexibility in other Asian markets such as Vietnam and Indonesia. Roy's figure of 20,000 people linking Guangzhou and Auckland is no exaggeration: New Zealand's Chinese community includes a sizeable Chaoshan contingent who can act as cultural interpreters and business connectors, lowering market-entry costs for smaller firms. In terms of industry structure, New Zealand's exports to China remain dominated by primary products, but rising Chinese consumer preference for branded, traceable goods opens room for smaller premium brands to differentiate.

The physical presence of the Chaoshan pavilion helps fill the gap in offline channels for New Zealand brands in southern China. Companies should be clear-eyed, however: the pavilion is only an entry point, and local compliance, cold-chain logistics and after-sales service are the real tests. The tourism growth Roy mentioned, with China as the third or fourth-largest source market, works in tandem with the trade pavilion: repeat purchases after tourists return home often flow through diaspora networks and cross-border e-commerce, so SMEs can design an experience-to-repeat-purchase loop.

New Zealand was an early signatory of FTAs with China and India, giving it a clear tariff advantage, but utilisation rates still have room to improve. Grassroots networks such as the Chaoshan Group can fill gaps left by official trade promotion, particularly for SMEs with little international expansion experience. Roy's call for market diversification is not empty rhetoric: global protein price volatility and geopolitical tension require exporters to be able to switch markets quickly.

The recovery in wool auction prices may point to niche opportunities, but firms should avoid repeating the mistake of dependence on a single commodity.

Keywords: Chaoshan Group, New Zealand trade, Eric Roy, free trade agreement, China market, Asian middle class, wool exports, Chinese tourists, diaspora networks, market diversification

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Source: iHeart