In the past, we’ve chatted through the domestic issues facing New Zealand, so let’s discuss the economic future of the ~5 million Kiwis in the context of the shifting global landscape.
New Zealand has one of the world’s most efficient agricultural systems, specializing in dairy, sheep, and wine. Since these industries are some of the most protected, deglobalization will limit export access. How will they cope?
Well, New Zealand is no stranger to hard work, so let’s breakdown their options. They could lean into the NAFTA system and forge stronger ties with the US. Or they could shift production toward things like wheat and soy, which will be in high-demand. Both options would necessitate giving up something important to Kiwis. A third option, which could prove to be a strategic advantage, would be partnering with industrializing nations in Southeast Asia.
Regardless of that need to adapt, New Zealand is resilient and well-positioned to navigate these broader shifts. And they better figure it out, because where else am I supposed to vacation every year…
