I hope that NZ PM Key's visit (July 8, 2009), and Minister for Foreign Affairs McCully (July 20, 2009), to Tonga were not empty promises to removing barriers in Tonga-NZ trade policies.Tongan farmers are still handicapped by more trade barriers.
The "fruit flies" (Dr. Stechmann, 2007) bans on some fruits have been lifted, however, NZ price-control regulations are still limiting Tongan growers' free-market access. A Tongan watermelon grower verified last week, for example, that Tonga is limited to only 200 melons a shipment to prevent "flooding" of the NZ market.
NZ politicians can call it flooding, or any name they wish, but it is still price control, a "protectionism" policy to (1) protect NZ businesses with high prices; (2) deny Tongan growers with better quality melons at lower prices, access to NZ markets; (3) keep prices high for the benefit of a few affluent Kiwis. Set prices only benefited those who can afford them, leaving none for the less affluent of society.
NZ politicians still have not entirely shed those socialistic practices that brought their economic woes of the 1980s and 1990s. Stanford University professor of economics, Dr. Thomas Sowell wrote in Basic Economics (2007, 3rd ed.), that price controls were NZ's worst enemies.
He wrote that politicians loved to promise socialistic benefits of a controlled economy to gain votes and donations, but they do not understand the role of price economics. Controlled price always had the adverse effects in an economy. NZ Government even bought access supplies from producers to keep them off the marketplace, stabilizing the controlled pricing policies.
My watermelon grower friend in Tonga also confirmed that a second shipment was "ta'emahino" (unsure). Many of their watermelon crops will be sold locally at much lower prices, or perished on their plantations. He is guaranteed TOP$2,000 for the first shipment, but he could ship more.
As a trading partner NZ must encourage Tongan growers with an "even playing field" to provide NZ with the best products. Stabilizing the market, and ensuring continuity in the supply chain are key to a sustained trading partnership. NZ's free-market without price controls will benefit more Tongan growers, more NZ merchants, and more of the NZ population.
