A general view of an Australian flag is seen on April 9, 2013 in Beijing, China outside the Great Hall of the People.
Feng Li | Getty Images
SINGAPORE – Nationalism is not a way to pursue diplomatic relations, the New Zealand Minister of Trade told CNBC when he called for more multilateral trade and ties worldwide.
In fact, the world needs to build its ‘total security’ – especially now during the Covid-19 pandemic, Damien O’Connor told ‘Squawk Box Asia’ on Wednesday as part of CNBC’s coverage of the Davos Agenda of the World Economic Forum .
“Nationalism is not the way forward – we hope to build multilateral trade and diplomatic relations around the world and play our part,” added O’Connor, who is also the country’s agriculture minister.
Over the past few years, protectionism and nationalism have come to the fore, as countries such as the US and some in Europe focus primarily on their domestic economies and issues, sometimes at the expense of cooperation and collaboration with others.
Experts called the strained ties between the US and China the new ‘Cold War’ as tensions spread from the trade front to technology and other areas.
They also warned that the coronavirus pandemic would cause more protectionist policies among countries because they wanted to limit the economic damage of the virus.
New Zealand on Tuesday signed a trade agreement with China giving Kiwi exports greater access to the Asian economic giant. The agreement paves the way for the removal or reduction of tariffs on many New Zealand goods, ranging from dairy and seafood to timber.
Offer to mediate
The agreement comes at a time when China is still embroiled in strained trade tensions with countries such as Australia and the US
Regarding the timing, O’Connor remarked: “It gives a clear signal to the world that China, and ourselves, of course, support trade agreements that are strong … supported by good laws.”
Relations between China and Australia have accelerated since last year after Canberra backed an international inquiry into China’s handling of the coronavirus pandemic. As a result, Beijing has been targeting a growing list of Down Under imported products for months, imposing tariffs on wine and barley and suspending beef imports.
New Zealand has offered to mediate a ceasefire between the two countries, saying that the Asia-Pacific Economic Cooperation (APEC) summit this year could be an opportunity for New Zealand to bring both parties to the table, according to Reuters.
Commenting on New Zealand’s mediation offer, O’Connor said: “We have a mature … relationship with China, and we have always been able to raise issues.”
“I can not speak for Australia and the way it conducts its diplomatic relations, but clearly if they would follow us and … from time to time would speak a little more diplomacy and be careful with the wording … hopefully (they) can be in a similar situation, ‘he said
Meanwhile, Australian Treasurer Josh Frydenberg told CNBC on Monday that he would continue to advocate for his national interests, but that he wanted to improve strained relations with China.