By Simon Devoy, head of ExportNZ Northern Region
The latest trade confrontation between Canada and the United States is another reminder of how quickly the rules of global commerce can change.
As at the time of writing, the US plans to double tariffs on Canadian cars, trucks and automotive parts to 50% from January 1, following the imposition of 50% tariffs on a wide range of other Canadian goods. Canada has promised to retaliate dollar for dollar.
For New Zealand exporters, the immediate issue may be unfolding on the other side of the world, but the lesson is uncomfortably close to home. Trade relationships can deteriorate quickly, tariffs are again being deployed as an economic weapon, and even long-standing partners cannot assume that established market access will endure.
For years, New Zealand’s export conversation has been dominated by tariffs, trade agreements and market access. But in a world of intensifying competition, geopolitical uncertainty and shifting trade relationships, gaining access to a market is increasingly the entry ticket rather than the prize.
The harder question is whether New Zealand businesses can stand out once they get there. The exporters that thrive over the next decade will not simply be those with access to customers. They will be those that earn their trust, build recognised brands and offer products that customers actively seek out.
New Zealand’s prosperity depends on our ability to sell goods and services to the world. While dairy, meat and horticulture remain critical, today’s exporters are increasingly creating value through technology, specialised manufacturing, professional services and intellectual property.
As exports become more diverse, so too must our understanding of what drives international success.
One company that exemplifies this shift is Auckland-based Dodson Group. The company designs and manufactures high-performance automotive driveline components that are sold worldwide and have become the top global brand in a niche, high-value-add industry.
CEO and Managing Director David Sweas believes the secret is surprisingly simple.
He says the company leads with the product, and in asking why the world is buying from New Zealand, halfway around the world from where most are based, the answer becomes clear: the product and tech support must be excellent and the customer service needs to be on-point. That substance behind the marketing is what makes it worthwhile for the customer, and it’s what builds a world-class brand.
The strongest brands are built from the inside out. Product quality, customer service and innovation come first. Marketing helps communicate those strengths, but it cannot replace them.
As Sweas puts it, the brand starts with the product and the operation. The marketing just helps tell the world that story.
That philosophy is particularly relevant for a country like New Zealand. We are a long way from our customers. We cannot compete on proximity and often cannot compete on scale. What we can do is compete on innovation, expertise and value.
Sweas also challenges the view that geography is simply a barrier to international success. His view is that it is a big advantage.
Being based here has allowed Dodson Group to focus on research and development, create intellectual property and innovate outside the intense competitive environment of larger markets. Being small and geographically distant often forces businesses to think globally earlier, focus on specialisation and find new ways to innovate.
Those qualities are becoming even more important as the global tradng environment evolves. The assumptions that underpinned international commerce for decades can no longer be taken for granted.
For New Zealand exporters, this means agility is no longer optional. Companies need to diversify markets, understand changing customer expectations and remain alert to new opportunities. They must be prepared to adapt quickly when circumstances change.
New Zealand exporters have repeatedly shown they can adapt when markets change. That resilience will be critical in the years ahead.
No exporter succeeds in isolation. As markets evolve, businesses benefit from sharing experiences, learning from their peers and gaining fresh insights.
That is the purpose of Global X, the EMA’s summit for exporters on September 15. It will bring the export community together to examine the major issues shaping international trade and share practical insights from businesses succeeding in global markets.
Sweas will be among the speakers, drawing on Dodson Group’s experience of building an innovative New Zealand business with an international reputation.
The focus is not simply on selling more products overseas, but on how New Zealand businesses can thrive in a world where innovation, reputation and resilience increasingly determine success.
The rules of global trade may be evolving, but one thing remains constant: New Zealand’s future prosperity depends on our ability to compete and win on the world stage. Increasingly, that means competing on the strength of our ideas, our products and the trust we build with customers around the world.