Todd McClay to Strengthen Trade Ties in Saudi Arabia and the US

Following his Saudi meetings, Minister McClay will travel to Washington D.C. at the invitation of United States Trade Representative Jamieson Greer.

Agriculture, Trade and Investment Minister Todd McClay is set to embark on a significant overseas mission next week, travelling first to Saudi Arabia and then to the United States to deepen trade, agriculture, and investment partnerships at a time of global economic uncertainty.

Advancing Ties with Saudi Arabia

Mr McClay will begin his visit in Riyadh, where he is scheduled to meet with senior Saudi leaders including the Minister of Commerce, His Excellency Dr Majid bin Abdullah Al-Kassabi, and the Minister of Environment, Water and Agriculture, His Excellency Eng Abdulrahman Abdulmohsen Al-Fadley.

Discussions will focus on strengthening bilateral trade and investment opportunities, particularly in the areas of food production and agritech cooperation—sectors where New Zealand has strong global expertise. With Saudi Arabia aiming to enhance food security and agricultural innovation under its Vision 2030 programme, New Zealand’s advanced agritech solutions, dairy expertise, and sustainable farming practices are well placed to contribute.

This leg of the trip will also be used to explore the potential benefits of the recently concluded New Zealand–Gulf Cooperation Council (GCC) Free Trade Agreement. While negotiations wrapped up last year, both sides are now considering how best to leverage the deal to unlock new export opportunities and reduce barriers to trade.

Focus on US Tariffs and Bilateral Cooperation

Following his Saudi meetings, Minister McClay will travel to Washington D.C. at the invitation of United States Trade Representative Jamieson Greer. There, he will meet with Secretary of Agriculture Brooke Rollins, U.S. industry representatives, and leading think tanks to discuss bilateral trade and agricultural priorities.

A key topic will be the United States’ recent decision, announced on 1 August, to apply a 15 percent—or higher—tariff on all countries running a trade surplus with the U.S. New Zealand, which currently enjoys a modest surplus, is directly affected by this move.

Minister McClay stressed the importance of understanding the implications of the U.S. policy: “New Zealand and the United States have a long-standing, well-balanced trading relationship, with periods where the U.S. has run a surplus and times, like now, when New Zealand holds a modest one. Overall, our trade is complementary and reflects the strength of our partnership. I will be seeking to understand the impact of these tariffs and what they may mean for exporters, particularly if trade flows shift.”

He noted the imbalance in tariff exposure, with the U.S. currently facing an average tariff of just 0.3 percent on its exports to New Zealand—significantly lower than what New Zealand exporters face in the American market. “It’s important we raise these concerns constructively while reaffirming our commitment to a strong and cooperative U.S.–New Zealand relationship,” Mr McClay said.

Strengthening Global Trade Engagement

The meetings in Washington will also address wider trade and investment opportunities, with a focus on agriculture, innovation, and areas where both nations can expand cooperation. New Zealand’s agrifood and agritech industries are expected to feature prominently, given their growing demand in the U.S. market.

The trip reflects the Government’s wider push to diversify New Zealand’s trade relationships, expand its presence in high-value markets, and safeguard exporters from global uncertainties. With both Saudi Arabia and the U.S. being influential global players, the outcomes of this mission could shape New Zealand’s trade strategy for years to come.