"I met with the EU Trade Commissioner on Friday of last week in Oslo and she confirmed to me that the EU-NZ FTA is on track for launch next year, and that both sides will continue to work together to make sure that happens".
- Todd McClay, New Zealand Trade Minister
Trade Balance in New Zealand's widened during the previous month outperforming economists' expectations. The nation's trade balance showed a deficit of NZD 1,436 million, including a large one-off capital item of NZD 248 million. Excluding this, the deficit was consistent with the expectations. Meanwhile, seasonally, New Zealand usually records a huge deficit during this time of the year due to the low primary sector export volumes after winter. Seasonally adjusted, the deficit was quite decent at NZD 628 million. Taking into account annual basis, it came in at NZD 3,404 million. Moreover, the annual deficit is smaller compared to the late 2015 through the first half of 2016. Nevertheless, seasonally adjusted deficit continues to be one of the largest in recent years, while the annual deficit has been on a broadening path since July.
In the meantime, New Zealand appears to be moving closer to a free trade deal with India, Asia's third-largest economy. Prime Minister John Key recently held extensive talks with India's head of state Narendra Modi. Prime Minister Key announced to media following the meeting that "without a doubt we're making progress."
© Dukascopy Bank SA