Why Should We Buy New Zealand Goods When American Companies Face Restrictions?

The perception that American companies cannot operate effectively in New Zealand often leads to questions about why individuals and businesses should purchase goods from New Zealand. This article aims to clarify whether such claims are true and highlights the reality of American businesses in New Zealand.

Understanding the Operation of American Companies in New Zealand

It is a common misconception that American companies face significant challenges in New Zealand. Actually, a variety of American firms, including notable brands such as Starbuck's, IBM, and Heinz, operate and sell in New Zealand without any notable operational restrictions. These companies adhere to local laws while enjoying similar business opportunities as other foreign entities.

For example, consider the case of IBM. It operates seamlessly in New Zealand, providing cloud services, IT consulting, and other technology solutions. Similarly, Starbucks has established a presence, catering to the tastes of New Zealand’s customers by offering a range of high-quality products similar to what is available in the United States.

This is not unique to major brands. Even smaller American companies like Hawaiian Airlines successfully operate in New Zealand. They follow local employment laws and regulations, ensuring a smooth and compliant business environment.

Addressing Specific Concerns

A popular assumption states that US companies face legal barriers in New Zealand. However, it is important to note that there are no significant legal restrictions preventing American businesses from operating in the country. These companies must abide by local laws, which is standard for any foreign entity doing business abroad.

Consider a personal anecdote: one individual mentioned working for Hawaiian Airlines in New Zealand. The company was pleasantly surprised when she took a 12-month paternity leave and returned to find her role still intact, emphasizing the company's compliance with local employment laws.

Trade Barriers and Economic Factors

The primary issue lies in trade barriers rather than operational restrictions. While American companies face no significant operational challenges, New Zealand exports, particularly agricultural products, face trade barriers due to agreements and policies.

New Zealand lacks a Free Trade Agreement (FTA) with the United States. As a result, many agricultural exports face high tariffs and quotas, making them less accessible and more expensive in the US market. For instance, tariffs on beef, dairy products, and wine can make these items prohibitively expensive, even for long-term American customers.

Paradoxically, New Zealand politicians are often under pressure to secure such an FTA, as it would benefit the economy. However, the current trade environment, characterized by tariffs and quotas, makes it difficult for New Zealand goods to penetrate the US market.

Examples of American Companies in New Zealand

It's important to recognize the various American companies that are already operating and selling in New Zealand. Here are a few examples:

Burger King: A well-established fast-food chain serving millions of customers. Krispy Kreme: A beloved doughnut brand with numerous outlets across the nation. Heinz: Known for its diverse range of condiments, sauces, and snacks. Hershey’s: Famous for its chocolate products, enjoyed by many. Ford and General Motors: While car manufacturing might not be as extensive as in other markets, these brands have a presence in New Zealand. White Wings and Edgell: These beverage companies cater to the New Zealand market with their unique products.

This list, while not exhaustive, demonstrates that American companies are indeed flourishing in New Zealand, contributing to the local economy and providing various consumer goods and services.

Conclusion

While the perception of operational restrictions may exist, a closer look reveals that American companies face more trade barriers than operational challenges in New Zealand. Despite the current trade barriers, numerous American companies successfully operate and sell in the country. The focus should be on policies that promote fair and reciprocal trade, benefiting all parties involved.