'Devil will be in detail': Luxon on possible USA-China trade deal
US President Donald Trump said a deal with China is "done" after two days of high-level talks in London.
Luxon welcomed the news but wanted to see the finer details.
"What we want to see is more certainty in the global trading environment, and I've read the reports as well," he said.
"The devil will be in the detail, but that can only be a good thing."
ADVERTISEMENT
Luxon said he expected to discuss the matter with China President Xi Jinping on his next trip the global giant.
"I'm sure that will be a topic of conversation about how we see the global trading environment and how we're observing in the region, but also around the world," he said.
Despite the trade uncertainty, Luxon said New Zealand exporters to the US had been making good progress.
"They're still finding really great opportunities to grow their businesses, they're doing a great job of targeting the right channels and customers," he said.
"But yes, of course that will be a big top of conversation when I do catch up with both President Xi and Premier Li (Qiang) in due course."
Agriculture Minister Todd McClay also welcomed the news of a possible US-China trade deal.
Trade Minister Todd McClay. (Source: rnz.co.nz)
ADVERTISEMENT
The overnight announcement comes as the government welcomes the state of the country's agriculture sector.
The Ministry of Primary Industries' Situation and Outlook report is projecting a double digit increase in New Zealand export revenues this year - though it warns about global uncertainty.
It estimates New Zealand's agricultural export revenue could reach just under $60 billion by the end of June, up from a dip in 2023-4.
McClay told Morning Report if a US-China deal has been done it would be "good news".
At an OECD trade ministers meeting in Paris last week he had met with the trade ministers of both China and the US.
Both had then gone off for joint talks so some momentum had been building to try and find a solution to their tariffs impasse.
If things calmed down for international trade it would bring "welcome relief" for exporters and result in some "sensible decision-making".
ADVERTISEMENT
Exporters 'go for value'
McClay said the remarkable growth in primary exports was very positive.
Dairy had enjoyed a solid season with a good supply of grass which had increased milk production.
The meat sector was performing well and for the first time $5 billion worth of kiwifruit had been exported.
Even the US market faced with tariff uncertainty was providing some opportunities for Kiwi exporters, citing the example of NZ King Salmon which has talked of increased sales at a higher price.
Kiwi exporters were working hard to add value to their products, McClay said. One example was selling ready to eat burger patties to China which resulted in greater returns for farmers.
"So we're seeing Kiwi exporters go for value, not competing on price anywhere as much as they used to."
ADVERTISEMENT
Luxon said the government, particularly McClay and Finance Minister Nicola Willis could take a "tremendous credit" for the growth.
"We've created the conditions for growth; it's ultimately up to the businesses themselves to go out and seize on those opportunities," he said.
"But if I think about the work that Todd's undertaken to make sure we're opening new markets, whether it's the GCC, the UAE, a 21% growth in the UK just in the last 12 months, a 28 percent in the EU by virtue of Todd bringing that agreement into earlier acceptance.
"There's been tremendous progress made on the trade front, and I think Nicola's work to make sure that she's cleaning up the books, good financial management, good fiscal management to lower inflation, to lower interest rates to get the economy growing, to get people employed - that's the work we've been doing as a government."
Luxon reiterated the government's belief in the importance of growth and said it was the primary industry sector pulling New Zealand out of a recession.
"We've got a really exciting future to shape it despite all the volatility that's out there in the world.
"Really proud of the primary industry sector, but also proud of the work of both Nicola and Todd and all of our team to create the conditions for growth as well."
ADVERTISEMENT
On building in sustainability
A government-backed grass certification standard for dairy and meat exports had been launched at Mystery Creek Fieldays yesterday, McClay said.
This would be highly desirable for markets in China, other parts of Asia and the Middle East, McClay said.
"Grass fed now is increasingly wanted by consumers and they're willing to pay more."
On sustainable products, Groundswell has been calling for New Zealand to exit the Paris Agreement on Climate Change.
McClay said that was not going to happen mainly because it would make exports to many markets untenable.
He believed Groundswell and others were worried about higher costs and lower production if they adopted sustainable measures.
ADVERTISEMENT
"We've been really clear - we think through technology and other things we can meet these obligations without putting farmers out of business."
Alternatives to farmers going into the Emissions Trading Scheme were being worked on and would be announced soon.
McClay said the requirement of reducing methane by 10% by 2030 was on track to be met.
"So it shows farmers are willing to do it but we have to lean heavily into technology rather than just planting trees."
A number of products, known as methane inhibitors, have been developed already although they might have to overcome consumer resistance.
McClay said anything developed would have to go through rigorous scientific testing.
There would be a range of solutions developed and farmers would decide which ones they wanted to pick up.
"The overseas customers through the dairy company should be paying for this, not the New Zealand farmer."
rnz.co.nz
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
an hour ago
- Scoop
War & Peace In Thailand & Cambodia
Cross-border rocket attacks on the morning of July 29, by U.S.-armed Thailand and China-assisted Cambodia, "violated" a ceasefire brokered by President Trump who linked it to possibly lowering his 36 percent U.S. import taxes on exports from the two Southeast Asian nations. Thai and Cambodian army commanders however met for lunch on July 29 and appeared to put a halt to their six days of bloodiest fighting in a decade. Thailand blamed Cambodia for violating the first day of the ceasefire on July 29 by firing their dreaded Soviet-era, truck-mounted, multi-rocket artillery which unleashed unguided warheads onto Thai soil, prompting Thailand to retaliate with higher precision artillery. Beyond the battlefield, the fighting may be bolstering the hawkish, highly politized, Royal Thai Army's influence which appears to be gaining some domination over Bangkok's fractured elected coalition government after officials indicated the military was being allowed to unilaterally make decisions where and when to open fire. Thailand is a non-NATO U.S. ally. After decades of repeatedly seizing power in more than a dozen coups since 1933 and muting Thailand's struggle to establish a democracy, the Thai army lost swaths of popular support during the past few years, especially among university students and the rural poor. Now strident, jingoistic cheering of the military is being vociferously voiced by Thailand's mainstream and online media, public opinion, politicians, and at dinner tables, prompting human rights activists to worry the army's new popularity will enable it to increase its manipulative political power. "The soldiers will continue to do their job at full steam -- so Thais do not worry -- until the government has reached a clear agreement that there is no danger for the people, and to ensure we maintain the country's interests, in order to bring the peace we want to see," Thailand's Acting Prime Minister Phumtham said on July 27. Cambodia's authoritarian regime could also be strengthened by the patriotism and nationalism stirred by the worst fighting in a decade between the two Buddhist-majority countries. The fighting along Cambodia's northern border with Thailand coincides with a dangerously destabilizing breakup between the two nations' dynastic, billionaire, ruling families after decades of tight interlocking personal relations. Both countries' authoritarian de facto leaders and former prime ministers -- Thailand's Thaksin Shinawatra and Hun Sen in Cambodia -- and their families are openly warring against each other over public betrayals, lies, threats, and leaked confidential audio recordings. Thailand flew its U.S. F-16 warplanes and Swedish jet fighters across the frontier and repeatedly bombed Cambodia during their six-day border feud. China assists Cambodia's development projects, investments, and infrastructure and offers some military training and weaponry. Cambodia publicly presents itself as an innocent victim of Thai aggression, emphasizing that Phnom Penh is much poorer, less armed, and had no motive or desire to fight a war against wealthier, heavily armed Thailand. Thailand projects its case as the opposite, insisting Cambodians fired the first shots, and satellite imagery during the past three months above the disputed Emerald Triangle region can purportedly prove Cambodian troops were advancing, digging trenches, and "encroaching" on Thai soil. "The Cambodian military forces have violated the agreement by launching continuous and indiscriminate attacks on Thai territory across various areas along the border, even after the agreed ceasefire time had passed," the Thai government said on July 29. Bangkok detailed the violations in a report for Washington, Beijing, and Southeast Asian governments "who bore witness to yesterday's dialogue and negotiation, to inform them of Cambodia's lack of sincerity," the government said. During six days of aerial bombardments, artillery, mortar, and drone attacks, both sides repeatedly blamed the other for firing first or causing the most death and damage. More than 36 people, including 14 Thai soldiers, 14 Thai civilians and 8 Cambodian civilians, have perished since fighting escalated on July 24 along their disputed frontier, which is based on controversial 100-year-old French colonial maps dividing jungles, cliffs, and the scattered locations of revered ancient Hindu temple ruins. The impoverished zone includes the Emerald Triangle where military-reinforced northern Cambodia meets heavily fortified eastern Thailand and southern neutral Laos. "After the agreed ceasefire deadline, Cambodian forces continued to launch attacks into Thai territory at multiple locations. Such actions represent a deliberate violation of the ceasefire," the Royal Thai Armed Forces Headquarters said. "Thailand is therefore compelled to respond appropriately, exercising its legitimate right to self-defense in accordance with international law. Thailand has not initiated any aggression, but has acted solely to protect its sovereignty and ensure the safety of its people," the armed forces said. Phnom Penh denied Bangkok's charge and said Cambodia was adhering to the ceasefire despite their unresolved, century-old border dispute. After postponing their scheduled breakfast meeting on July 29 to quell the ceasefire's violations during the tropical morning, Thailand's 1st and 2nd Army Region commanders met their counterparts from Cambodia's Military Region 4 and 5, at two different border crossing checkpoints at lunch time. In a meeting in Thailand, commanders and their aides, all wearing camouflage uniforms, met face to face while seated opposite each other in a businesslike setting at a long table. A second meeting in O'Smach, Cambodia, was described as "informal" by Cambodian officials. A third meeting was held online with Thailand's Border Defense Command chief of Chanthaburi and Trat provinces chatting with Cambodia's Military Region 3 commander. They all agreed to stop shooting, stop reinforcing their troops, not to sneak into each other's territory, and halt all military movements along the border unless sick or injured troops need an ambulance to a hospital. The commanders also told each other there must be no firing at civilians, and both sides should choose quick action resolution teams who could communicate and coordinate directly with troops along the 500 miles of their curved border. Thailand repatriated the remains of a dozen Cambodian soldiers on July 28 at a temporarily opened border crossing. Arrangements need to be made to return additional dead and injured soldiers, and social media's vicious "meme wars" between Thai and Cambodian propaganda artists, satirists, and activists must not cause misunderstandings, they said. The commanders agreed to wait until Aug. 4 when a Thailand-Cambodia Joint Boundary Commission (JBC) meeting is scheduled to review the ceasefire and any violations. Both sides have accused the other of "war crimes" and breaking the Geneva Conventions, pointing at Thailand's use of U.S.-built F-16 warplanes and Swedish Gripen jets to bomb Cambodia, and for Cambodia's firing deadly, unguided rockets. The Royal Thai Air Force legally defended its aerial bombardments in a statement on July 29 reflecting on its "joint operations with the Royal Thai Army during 24-28 July 2025." "The Royal Thai Air Force deployed F-16 and Gripen fighter aircraft to conduct precision air strikes on hostile military targets that posed threats to Thailand's national security," the air force said. "The operations focused on neutralizing weapons depots and military active command centers. Missions were conducted both during day and night, and battle damages were assessed using integrated intelligence and modern surveillance technologies. "Particular deployment of air power was carried out in full compliance with international law, based on the nation's inherent right to self-defense under Article 51 of the United Nations charter. The Royal Thai Air Force strictly adhered to the principles of proportionality, necessity, and clear distinction between military and civilian targets," the air force said. On July 24, Senate President Hun Sen reportedly told Thailand not to 'boast of your superior military power, or think of invading,' because Cambodia was 'fully prepared for combat'. 'You will face the most severe retaliation,' Senate President Hun Sen said. 'We won't just resist, we will strike back.' Cambodian Prime Minister Hun Manet, 47, wrote online: "The sooner the fighting stops, the sooner the affected people, especially the displaced, can return to their homes and resume their livelihoods. "At a time when the nation and our people are facing hardship, I may look a little older because of the gray hairs. Even if I look older and feel a little less strong than I did 10 years ago, my determination to face these challenges remains unwavering. "Let's wait until the army and people are safe, and the country has returned to peace -- then it won't be too late to dye my hair," the Cambodian prime minister said, according to Agence Kampuchea Presse. Bangkok insists all discussions about their disputed border remain between Thailand and Cambodia and confined to the JBC, with no outsiders deciding the issue. Cambodia however demands the bloodstained case be settled once and for all at the International Court of Justice in The Hague, Netherlands, which has ruled twice in Cambodia's favor, awarding it the coveted clifftop Preah Vihear temple ruins which are one of several crumbling stone architectural wonders in harm's way because of rocket attacks. Jungles, monsoon rain, mud, and steep cliffs have made survival along the border grueling for both armies and their countries' 200,000 residents who fled the zone, many of whom were eking out meager, subsistence lives on the scrubland's rice and rubber farms. Some weeping school children and sunburnt rice and rubber farmers crowded into their isolated villages' hand-built bunkers dug into the hard dirt. Others tied nylon cloth from their tractor or nearby tree to shield them from the sun and rain, and built campfires for cooking food in areas deemed safer from a direct hit. The summer heat enabled other evacuees to more comfortably shelter at Buddhist temples' outdoor pavilions and auditoriums, shaded by a roof of corrugated metal held up by cement pillars, where families clustered on straw mats amid plastic bags stuffed with necessities, bedding, clothes, and food, hoping to stay dry during brief monsoon thunderstorms. Troubling, unverified media has appeared online including a video supposedly showing a group of shouting Thai men beating a Cambodian man in an urban street, while a separate photograph showed men circling a hapless-looking person who was described as a Thai spy captured inside Cambodia. On July 28, Thailand's Acting Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet appeared with mediating Malaysian leader Anwar Ibrahim, who hosted the ceasefire talks in Kuala Lumpur, sitting alongside U.S. and Chinese diplomats. Within hours, Mr. Phumtham and Mr. Manet agreed to an "immediate and unconditional ceasefire" effective July 28 midnight local time. "Up to now, Thai soldiers continue to aggressively encroach on Cambodian territory, despite phone conversations between the leaders of both countries with U.S. President Donald Trump," said the Phnom Penh Post. President Trump posted on social media on July 26: "Many people are being killed in this War, but it very much reminds me of the Conflict between Pakistan and India, which was brought to a successful halt." Thailand wants "an immediate Ceasefire, and PEACE," he wrote, linking a ceasefire to his tariff negotiations with the two financially strapped countries which depend on keeping their exports to the U.S. inexpensive without Mr. Trump's heightened import taxes. "I am now going to relay that message back to the Prime Minister of Cambodia. After speaking to both Parties, Ceasefire, Peace, and Prosperity seem to be a natural." During July, landmines injured several Thai troops who were described by Thai officials as walking on the accepted Thai side of the border. The Phnom Penh Post however said in an editorial: "The Thai military's recent allegations -- especially those made by Lt. Gen. Boonsin Phadkhang of the 2nd Army Region that Cambodia deliberately laid new landmines resulting in injuries to Thai soldiers -- are not only unfounded but recklessly irresponsible. "No credible investigation has been made public, no transparent evidence has been presented," the paper said. Bangkok said the landmines were new, Russian-made, and recently secretly planted by Phnom Penh. Thailand hosts the Pentagon's biggest international military exercise in Asia, Cobra Gold, each year. Chinese play a broader role in Cambodia, funding huge investments, offering some training to Cambodia's military, and developing the country's infrastructure including ports and shipping canals. Thailand's heavily financed, 360,000 active-duty army, air force, and navy total three times impoverished Cambodia's military forces. Bangkok's military is backed by U.S. and other foreign training and weaponry including in the sky where Thai pilots easily dominate Phnom Penh due to Cambodia's lack of an effective warfighting air force. In addition to Thailand's U.S. F-16s warplanes, older F-5s, Cobra attack helicopters, and Black Hawk transport choppers, Bangkok also wields about a dozen Swedish Gripen fighter jets. Thailand's weapons and equipment also come from Israel, Russia, and elsewhere including 60 Chinese VT-4 tanks which augment dozens of older U.S. tanks. Thailand's 600 artillery pieces far outnumber and out-shoot Cambodia's much weaker artillery strength, according to the International Institute for Strategic Studies. Cambodia depends on its aging stockpile of about 200 Chinese and Soviet tanks and a few dozen Chinese and Soviet helicopters. Richard S. Ehrlich is a Bangkok-based American foreign correspondent reporting from Asia since 1978, and winner of Columbia University's Foreign Correspondents' Award. Excerpts from his two new nonfiction books, "Rituals. Killers. Wars. & Sex. -- Tibet, India, Nepal, Laos, Vietnam, Afghanistan, Sri Lanka & New York" and "Apocalyptic Tribes, Smugglers & Freaks" are available at
Scoop
an hour ago
- Scoop
Oil And Gas Bill Passed, Taxpayers Left On The Hook For Decommissioning Gas Wells
31 July 2025. Climate campaigners say the government's Crown Minerals Amendment (CMA) Act is a 'golden parachute for big polluters—and a lead weight for the rest of of'. The Act clears the way for new fossil fuel exploration while gutting safeguards that ensure existing oil and gas companies pay for their clean-up. While the Act passed through the house, climate climbers took action at the largest coal mine in the country, and are still there (five days in) as this goes to print. 350 Aotearoa Co-Director Alva Feldmeier says, 'This bill is a legislative match tossed into a climate tinderbox. It doesn't just open New Zealand up to new climate-killing oil and gas drilling — it strips away financial safeguards, leaving taxpayers on the hook for future decommissioning costs. Without these financial securities and trailing liability, the government is at a higher risk of having to pay to decommission – or plug – a failed oil well. This is no hypothetical - the fossil fuel industry previously left the taxpayer with a $443 million bill to decommission the Tui oil field. The oil lobby is clearly writing the script— the Government is just reading their lines.' 'As floods and storms ravage across the world and climate scientists run out of adjectives to describe how urgent the situation is, Luxon's Government is forging ahead with reckless plans to search for new oil and gas, dig up more coal and shelve every initiative to reduce emissions that they can. It's another time we can peek through the drawn curtains of this government - a government run by shady lobbyists writing policy and being appointed to key positions.' Shane Jones said in Parliament on Tuesday that 'only the oil and gas industry was an 'affected party' that needed to be consulted on this bill'. Nelson local and 350 campaigner Adam Currie responds, 'We put it to him that those of us in Whakatū Nelson, cleaning up from the last climate-fuelled storm are an affected party. How dare he claim we are not an affected party, the very same week we were working together as a community to clean up the silt and the mess from climate-fuelled storms driven by the very gas drilling this bill would enable? We put it to him that every New Zealand taxpayer is an affected party, for the public will now hold increased liability for cleaning up oil companies' mess.' Feldmeier says, 'This bill does nothing for New Zealand's energy security. We know that new oil drilling would take over a decade to come online, and the International Energy Agency tells us that global demand for oil, gas, and coal is on track to peak well before then. It doesn't have to be this way. The people of Aotearoa have a historic opportunity to move away from fossil fuels to a clean energy future powered by wind and solar, which would mean more affordable, cleaner and reliable energy for New Zealanders. Instead of fiscally irresponsible false solutions, the government should be focused on creating a long-term energy strategy that charts a path away from this broken, fossil-fuelled system that is responsible for rising energy poverty and workers losing their jobs.' Fenton Lutunatabua, Pacific Interim Team Lead says, 'Instead of securing a safe future for all countries in the Pacific, the New Zealand government has decided to hammer nails into our coffins. Many will feel this bill is a betrayal to Pacific neighbours, but it is in fact a betrayal of their own future generations as well. We see the increased flooding in New Zealand, and we mirror that pain in our own storm surge and coastal inundation. How the Luxon government thinks that repealing the oil and gas ban is the right decision for any of our futures is absurd.' Feldmeier says, 'This bill repealing the oil and gas ban has forced NZ out of the Beyond Oil and Gas Alliance (BOGA) - an alliance that we were part of creating. Aotearoa once claimed to be a climate leader—today, we are an international embarrassment. Aotearoa helped build the Beyond Oil and Gas Alliance. Today, we've walked out on our own future—and become an international embarrassment. If climate destruction were a crime, this Government would be caught red-handed.' 'The Government is also jeopardising fresh trade agreements with the UK and EU, for MFAT advice confirms that restarting oil and gas exploration likely breaches these agreements.'
Otago Daily Times
an hour ago
- Otago Daily Times
‘Old Baldy' falls foul of the ominous gender gap
"They booed him." "'Booed who?" Hannah, the bar manager, couldn't help overhearing the banter of her two favourite Boomers, right-wing Laurie and left-wing Les. She paused in her rounding-up of empty glasses and dirty plates to listen. "Luxon, Laurie, the prime minister turned up to the netball final, and the crowd booed him. Since when did New Zealanders start booing their prime ministers at sporting fixtures?" "Oh, come on, Les, your memory's not that bad. Jacinda Ardern wasn't our prime minister that long ago." "And if I recall rightly, Laurie, she received more abuse than any other New Zealand prime minister. But, it was only a certain sort of Kiwi who came after her. And, the hate they had for her was out of all proportion to her actual conduct as their prime minister. There was something quite deranged about Ardern's enemies' animosity. Looking back, I reckon she wasn't vilified on account of who, or what, she actually was, but on account of the huge event she was conflated with — the Covid-19 pandemic." "Spoken like a true Labour man, Les. But, you try running that line on those who were kept from the bedside of a dying parent. Or, the people who lost their jobs because they refused to be injected. Tell it to the retailers who watched their life's work sicken and die. Tell it to the schoolkids fretting alone at home. Truthfully, Les, I think Jacinda's 'actual conduct' merited quite a lot of animosity." "I think you've just proved my point, mate." "Touche Les. But Ardern still isn't the only New Zealand prime minister to have been monstered by her fellow citizens. Have you forgotten the 1984 incident when David Lange was set upon by a mob of Otago cockies? His driver and protection officers had to throw him into the back of the prime-ministerial limousine and power away before the furious farmers could tear the nation's new leader limb-from-limb." "Hell's bells, Laurie, I'd forgotten all about that. It was just after Roger Douglas had announced the abolition of all agricultural subsidies. Some cockies faced economic ruin." "Not happy chappies, Les, that's for sure." "And it reminds me of an even earlier incident — 1977, I think it was — when Rob Muldoon's limousine was dented all to hell by the boots of a dozen or so sturdy Dunedin cops trying to hold back an angry throng of Otago students and trade unionists calling themselves 'The July Front'. The constables had turned their backs to the crowd, linked arms, and, bracing themselves on the prime minister's car, expedited his entry to the Dunedin Town Hall — where the National Party was holding its annual conference." "Let me guess, Les, you were there." "Might have been, Laurie. It was a long time ago. As you say, my memory's not what it was." "Proves my point though, doesn't it? Luxon's very far from the first prime minister to be poorly received by the voting public." "OK, but it also proves my point, Laurie. Ardern, Lange, Muldoon: they all came under fire from aggrieved minorities. Victims of the Covid regulations. Farmers stripped of their state support. Students and unionists venting their left-wing spleens at Rob's Mob. But, being booed by the audience at a netball game? That's a bit different, isn't it? I mean, these were just ordinary Kiwis out for a night of sport. They hadn't come to protest, they'd come to cheer. But, when they saw Old Baldy they just saw red — or, in his case, blue — and started booing. That's got to mean something, surely? "Could mean a lot of things, Les. It could mean the fans were just pissed off at Luxon trying to muscle-in on a sporting fixture which, were he not the prime minister, he'd never dream of attending. Maybe they were annoyed at being used, quite cynically, as the backdrop for yet another National party photo-op." "Yeah, well, when you put it like that." "And, I'll offer you another explanation, Les. It was a netball final." "So?" "So, who follows netball — mostly?" "Women and girls." "Exactly. And who, by a scarily wide margin, favour Labour over National?" "Women and girls!" "Old Baldy, as you call him, was booed by the Gender Gap." "Go it in one, mate", muttered Hannah. ■Chris Trotter is an Auckland writer and commentator.
