PM warns that New Zealand won't become wealthy solely by concentrating on trade in the South Pacific.

• The South Pacific island nation must seek trade opportunities beyond its own region, as stated by New Zealand's prime minister to CNBC.
• The UAE-New Zealand free trade agreement signed on Monday presents an opportunity for Prime Minister Christopher Luxon to increase bilateral trade between the two countries.

The prime minister of New Zealand stated to CNBC that the country must seek trade opportunities beyond its own region, as it recently signed an economic partnership with the United Arab Emirates (UAE).

Luxon stated on CNBC Monday that our 40-year diplomatic relationship provides an opportunity to strengthen and expand our economic ties.

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Immediately upon the Agreement's entry into force, all of New Zealand's dairy, red meat, horticultural, and industrial products will be included.

"One in four jobs in New Zealand are highly dependent on trade," Luxon, leader of the center-right New Zealand National Party since late 2023, stated to CNBC's Dan Murphy in Abu Dhabi on Monday.

A New Zealand company that exports to the world can pay its workers 7% higher salaries and wages, and they are often more productive. This message to people at home is that New Zealand understands it is a trading nation and does not become wealthy by selling only to each other in the South Pacific or within New Zealand.

To increase revenue and improve public services, we must send out high-quality products and services to new markets, including the Middle East, where there is a significant demand.

After experiencing a recession in the third quarter, New Zealand's economy contracted by 1% in the July-September quarter, according to data released in December.

A technical recession is defined as two consecutive quarters of negative growth, which was followed by a 1.1% contraction in the previous quarter.

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