The Pfizer vaccine shows how crucial our trade relationships are

Trying to keep goods flowing and lines of communication open during a pandemic is more important than ever.

There are times in life when we don’t realise what we have until it looks like we might lose it. Covid-19 has touched and challenged every aspect of life around the world.

We’re all aware of the efforts, changes and sacrifices we’ve made here at home in New Zealand to keep ourselves safe and the economy ticking until we’ve reached our vaccination goals.

Having been abroad on two trade trips so far this year, I’ve seen first-hand the effects of Covid – empty airports, social distancing and tales of both economic and health hardship.

The cumulative effect of various global travel restrictions alone have caused US$1.2 trillion in lost output in the AsiaPacific region.

As you’d expect, each economy has had to determine its own path through the pandemic and manage myriad social, economic and political issues that Covid brings.

Overlay this onto the rise of protectionism in recent years, and we’ve seen trade winds turn into head winds.

What’s being demonstrated is how interdependent we are and how the benefits of co-operation can be lost when it’s disrupted.

This is why Apec 2021 has been so important for our region, because it presented a chance for member economies to come together and find ways to solve problems that are bigger than any one economy. Bigger than any economy, yes, but in the case of Covid also affecting every single person of the region’s 2.7 billion population.

The Pfizer vaccine is a symbol of how interdependent we are. Its manufacture involves some 220 components, sourced from 89 companies spread across 19 economies. Apec 2021 has seen members agree and commit to lowering or removing tariffs on vaccines, along with pandemicrelated goods, such as needles and personal protection equipment.

It’s been an absolute privilege to have chaired a number of Apec 2021 sessions during New Zealand’s hosting.

Though it would have been great to have hosted it in-person, doing it virtually actually had some upsides.

For a starter, it made it a lot easier for ministers and leaders to attend each of the many sessions.

Similarly, the numerous one-to-one Zoom sessions that I had with counterparts helped me in the leadup to the meetings that I chaired.

I believe these factors prepared the ground for New Zealand getting agreement on our Apec 2021 priorities, which the prime minister has announced.

They include ensuring widespread access to Covid-19 vaccines, making trade easier and faster and promoting policies that kick-start growth, create new jobs as well as boosting food security.

This year we have also advanced fossil fuel subsidy reform, initiatives that benefit the environment, and progressed economic empowerment of ethnic minorities, indigenous peoples and women.

Some question the relevance of Apec 2021 and its benefits. To them I would say hosting Apec put New Zealand in a leadership role at a pivotal moment. As an Apec 2021 ministerial chair, it also gave me the opportunity to attend the G20 in Italy last month, a group New Zealand sits outside of.

But, more importantly there is power in this year’s collective Apec 2021 agreements to influence organisations like the World Trade Organisation (WTO).

Later this month, I’ll be attending the WTO’s 12th Ministerial Conference where New Zealand, along with Apec 2021 economies, will be advocating strongly for reform.

New Zealand’s fortunes as a nation have depended heavily on our ability to trade – to produce something of value to someone else in another part of the world.

As a small economy in the world, we need rules-based systems that secure and promote the benefits of free and fair trade. Covid has so clearly illustrated to us that it’s in all our interests to work together and use economic co-operation and trade so we can respond and recover more quickly. In that way Apec 2021 has helped us all.

Some question the relevance of Apec and its benefits. To them I would say hosting Apec put New Zealand in a leadership role at a pivotal moment.

The grainy images of Zoom meetings have become a familiar sight over the past 20 months as the world has become used to meeting remotely. Apec was no different, with leaders being beamed in from offices and studios around the world.