Taiwan will buy more NZ wool if it joins trade bloc, clothing maker says – Stuff

Taipei, Taiwan The boss of a Taiwanese clothing company thinks that it would buy more wool from New Zealand if the country joins a powerful trading bloc.

Jason Chen, the chairperson of Singtex, which supplies materials to clothing brands like Mizuno and Champion, said that if Taiwan joined the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) it could grow his business by 30%.

Taiwan wants to join the to widen its trading partners with increased free trade and reduce its economic ties with China, which views Taiwan as a breakaway province rather than as a thriving self-ruled democracy.

James Halpin/Stuff

Singtex uses New Zealand wool in its jackets and chairman Jason Chen thinks its business could grow 30% if Taiwan accedes to the CPTPP.

Singtex imports two to three tonnes of New Zealand wool a month, Chen said, and uses wool in about 5% of its products, which are higher end jackets and coats that are then exported to Germany, Italy and Japan.

New Zealand already has zero tariffs with Taiwan, but Chen said the removal of textile tariffs between Taiwan and Vietnam, where Singtexs factories are, would allow him to grow the business and therefore need to import more wool.

If we can make the agreement together, then the tax is down, he said. People like wool very much, its comfortable, he said.

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Becoming a CPTPP member would lead to no tariffs on Australian wool for Chen, but Singtexs total need for wool from New Zealand would increase, even if a higher ratio was imported from Australia.

Everything is growing, maybe we start importing more Australian wool, but our production is increasing, our investments are increasing, Singtex brand manager Nicola Craig Hora said.

James Halpin/Stuff

Singtexs brand manager Nicola Craig Hora wearing a jacket which contains New Zealand wool.

Chen wasnt able to forecast exactly how much more wool he would buy from New Zealand, but said that he wanted to use wool more in his rain jackets, which had proved popular for the company.

Taiwans vice minister for foreign affairs, Alexander Yui, said on Monday multilateral trade, like the CPTPP, shared the political risk from blowback from China amongst countries within the pact rather than Taiwan and the bilateral partner.

When we talk about bilateral trade agreements there is some political sensitivities, he said.

Yuis comments were made a day before the Solomon Islands suspended all visits by the US Navy after striking a security pact with China in May.

Chiang Ying-ying/AP

People walk past a billboard welcoming U.S. House Speaker Nancy Pelosi, in Taipei, Taiwan. (File)

Taiwans security is in the global spotlight after China surrounded the island in a mock-invasion naval blockade following the visit of US House speaker Nancy Pelosi at the beginning of August.

Its part of their expansionist agenda, Yui said. They want to break from the first island chain, take over the Pacific, the South Pacific the same thing, he said.

They have a very large plan, it will not stop at Taiwan, it will go on if we dont stop it, Yui said.

It would benefit Taiwan if countries like New Zealand, the US and Australia were more intertwined with Pacific Island countries, like the Solomon Islands.

They have a very large plan, they will just go on if we dont stop it, he said. Be clear of what PRCs intentions are, have better coordination and if Taiwan can be part of the coordination the better.

Yuis comments were made to a group of journalists invited to the country largely to cover the islands desire to join the CPTPP trade deal.

AP

In this image taken from video footage run by China's CCTV, a projectile is launched from an unspecified location in China. (File)

Following the Chinese exercises around the island, New Zealands foreign minister Nanaia Mahuta said she was deeply concerned at recent actions that increase the risk of miscalculation, including the launching of ballistic missiles by China.

Taiwans representative in New Zealand has previously said the island would love more support from New Zealand and to see Aotearoa participate in freedom of navigation exercises through the Taiwan Strait.

When asked whether the vice minister thought New Zealands statement was strong enough support for a like-minded country and would like to see New Zealand participate in the navaigation exercises, Yui was diplomatic and said Taiwan welcomed any support and it was up to other countries how they responded.

Yui said some countries were more quiet in voicing their support for Taiwan because of trade dependence on China, but wouldnt name any.

James Halpin travelled to Taiwan courtesy of the Taiwan ministry of foreign affairs.

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Taiwan will buy more NZ wool if it joins trade bloc, clothing maker says - Stuff