An Air New Zealand Plane Flies Over Mount Victoria
IN PHOTO: An Air New Zealand plane flies over houses in Mount Victoria as it approaches Wellington airport, October 7, 2011. Reuters/Marcos Brindicci

New Zealand is planning to strengthen its ties with Arab nations when Associate Trade Minister Todd McClay travels to the Gulf region next week. He is set to tour Qatar, Saudi Arabia and the United Arab Emirates.

McClay said in a statement that he is “excited” about the chance to boost New Zealand’s relationships with the Arab countries. He added that the tours will be about reinforcing the country’s commitment to form partnerships with the Gulf states in areas such as trade, food security, infrastructure and services.

The associate minister revealed that the three states are part of a growing region that can offer significant opportunities for New Zealand. In return, New Zealand will share its expertise in government services and asset management.

McClay will travel to Dubai where he will be in discussions concerning the World Expo to be held in 2020. He will also have a meeting with New Zealand-based companies that are active in the Gulf.

While in Saudi Arabia, McClay will be meeting with his counterparts about a bilateral trading relationship, Global Times reports. In Qatar, he is expected to meet with ministers to achieve further cooperation in education and environment.

Meanwhile, New Zealand recorded a $NZ 159 million trade deficit for December and a NZ$1.15 billion deficit for the year ended Dec. 31. According to Statistics New Zealand, the country’s goods trade balance remained in deficit as the value of exports took a hit from declining dairy exports. Milk exports fell 35 percent despite a rise in the volume of dairy.

The New Zealand dollar continues to rise above the Australian dollar with the kiwi trading at 94.90 Australian cents as of Feb. 5 from as high as 95.08 cents in three weeks. The gap between the policy of New Zealand and Australian central banks has widened when Australia decided to cut interest rates to 2.25 percent, TVNZ reports. The health of the world economy has been driving currency markets. Economists expect New Zealand to maintain its positive economic growth.

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