A general view of an Australian flag can be seen outside the Great Hall of the People on April 9, 2013 in Beijing, China.
Feng Li | Getty Images
SINGAPORE – Nationalism is not the right choice in diplomatic relations, the New Zealand Commerce Secretary told CNBC when he called for more multilateral trade and global ties.
In fact, the world needs to build its “overall security” – especially now during the Covid-19 pandemic, Damien O’Connor told “Squawk Box Asia” on Wednesday, as part of CNBC’s coverage of the World Economic Forum’s Davos Agenda.
“Nationalism is not the way forward – 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 center stage, as countries like the US and some in Europe focus primarily on their domestic economies and issues, sometimes at the expense of cooperation and collaboration with others.
Experts have dubbed the strained ties between the US and China the new “ Cold War, ” as tensions moved from the trade front to technology and other areas.
They have also warned that the coronavirus pandemic will lead to more protectionist policies between countries as they seek to limit the virus’s economic damage.
On Tuesday, New Zealand signed a trade agreement with China, giving kiwifruit exports more access to the Asian economic giant. The deal paves the way for eliminating or cutting tariffs on many New Zealand goods, ranging from dairy and seafood to timber.
Offer to mediate
The deal comes at a time when China is still mired in tense trade tensions with countries like Australia and the US.
On the timing, O’Connor noted, “It sends a very clear signal to the world that China, and we, of course, support trade deals that are robust … backed by good laws.”
Relations between China and Australia have deteriorated since last year after Canberra backed an international investigation into how China is tackling the coronavirus pandemic. As a result, Beijing has focused for months on a growing list of imported products from Down Under – with tariffs on wine and barley and beef imports suspended.
New Zealand has offered to negotiate a truce between the two countries and says the Asia-Pacific Summit (APEC) this year could be an opportunity for New Zealand to bring both sides to the table, said Reuters.
Of New Zealand’s brokerage offer, O’Connor said, “We have a mature … relationship with China, and we have always been able to raise concerns of concern.”
“I can’t speak for Australia and the way it manages its diplomatic relations, but it’s clear if they followed us and … spoke … (with) a little more diplomacy from time to time, and be careful. with formulations… hopefully (she) could be in a similar situation, ”he said
Meanwhile, Australian treasurer Josh Frydenberg told CNBC on Monday that it will continue to advocate for its national interests, but that strained relations with China are eager to improve.