Luxon Dismisses US Trade Deal Amid Asian Summits

New Zealand Prime Minister Christopher Luxon stated that a specific trade agreement with the United States is unlikely during his current visit to Asia. Luxon is engaged in high-level summits in Malaysia and South Korea, where he is meeting various world leaders, including Donald Trump, Xi Jinping, Mark Carney, and Anthony Albanese.

Trump’s recent arrival in Kuala Lumpur was marked by vibrant displays, including a performance on the tarmac, followed by signing trade deals with four Southeast Asian nations. In contrast, Luxon expressed skepticism about New Zealand securing a trade pact similar to those made by Malaysia or other countries in the region. He cited significant differences in trade situations, noting that Malaysia faces a 24% tariff imposed on Trump’s ‘Liberation Day’, while New Zealand is subject to a 15% tariff.

“The reality is the president’s pretty set on his mode of what he thinks is the deal,” Luxon remarked, highlighting the varying tariffs imposed across Asia. He pointed out that many countries in the region are operating under tariffs ranging from 20% to 40%.

Regarding a potential meeting with Trump, Luxon stated, “if it happens, it happens; if it doesn’t, it doesn’t.” New Zealand is currently in discussions to purchase approximately $2 billion worth of military helicopters from the United States, a move that is expected to significantly impact the nation’s trade balance. Luxon indicated that he would raise this topic should he meet with Trump.

Luxon emphasized the importance of summits such as those he is attending this week, describing them as vital for building networks that allow New Zealand to respond effectively to international developments. He recalled a previous instance in April when he was able to contact Phạm Minh Chính, Prime Minister of Vietnam, to discuss tariffs shortly after they were imposed.

The ASEAN and APEC summits provide an opportunity for nations committed to a free trade, rules-based international system to convene and reinforce their positions. Luxon also highlighted the security aspect of the East Asia Summit, expressing pride in the New Zealand Navy’s deployment of a warship to participate in joint exercises with Japan.

“You can’t have prosperity without security,” Luxon stated, asserting that this approach would not jeopardize New Zealand’s relationship with China. He emphasized the need for the country to demonstrate its values through actions rather than words, particularly in relation to enforcing UN sanctions on North Korea.

During his trip, Luxon met with Prime Minister Phạm Minh Chính on the morning of October 30, 2023, and is scheduled to engage with the leaders of Cambodia and Thailand. He is set to travel to South Korea for the APEC meeting on the evening of November 1, 2023.