What is a "free" trade agreement (FTA), anyway?

Cartoon source

FTAs are not the 'freedom to trade', or if it was, that horse has long since bolted. Maybe it's freedom from subsidies? It's certainly not the freedom to trade without tariffs, goods still have sales tax applied to them and attract other fees.

I have been following developments with international agreements since the late 1990s, having spent some time working directly with exporters, so have more than a passing interest.

I'm responding to the seemingly endless tirade of anti TPP articles that are we are fed by a media that seems sympathetic to a 'the cause'. A recent example is in Scoop an independent online agency, and the NZ Herald, NZ's largest newspaper.

Both would to well do mention if an article is an opinion piece, as opinions are not the best source of balanced perspectives. This is evidenced to the reference to Kelsey's article (and support of) It's Our Future's website in the Scoop article, or the increased rhetorical nature of her posts on The Daily Blog, dedicated to lobbying against the TPPA.

The writer of both articles is professor Jane Kelsey who seems to have become a 'go to authority' on the TPP, in spite of her opposition to it. Kelsey has publicly campaigned against the TPPA and is self described as anti globalization. (Is that the same as being against international trade?)  The articles are not presented as an opinion piece, the usual practice when media deviate from balanced journalism.

Relying on writers like Kesley who have a declared bias to be informed about the TPPA leaves me unimpressed. Neutral, let alone positive voices the TPPA are difficult to find, pro TPPA statements are restricted to sound bytes by politicians, who remained tight lipped about details, as they have agreed. Clearly there are some positive aspects, as the TPPA pursues simplification of international trade. It promotes all member nations to have a minimum wage (which 11 of the 12 already have), has clauses relating to the environment (having any international agreement is a big step forward).

Good inclusions include provisions on the environment, criticized because they will be difficult to enforce, a nice distraction from the fact that the existence of such provisions are a step in the right direction.

Those government leaders would hardly commit political suicide over this agreement by signing a thoroughly rotten anti people initiative that ruins democratic process - like the anti TPPA people would have us believe. Their thinly veiled inference is that government is in bed with big business - but NEWSFLASH - this agreement is about international agreement that affects the way international business is completed. For the TPPA, that unusually includes provisions to do with the environment, labor and intellectual property. And speaking of democracy, we know that governments will be ratifying the agreement - that's their job in NZ's case they were democratically elected to do.

Some countries are punitive in their application of tariffs, and more complex rules favors those companies that have the resources to overcome barriers. I know this because I have worked in teams that dealt with compliance.

So which is better, simpler international trade or more complex? The additional costs from travel to testing has not only a direct cost, but an environmental one. An example is goods that take an indirect route into a market, to avoid a tariff. Simplicity for international trade is usually better.

What's interesting is that there is criticism of secrecy, then statements criticizing details. Which is it? Can the writers have it both ways? Are the writers blind to this contradiction? Also, big points are made from data sourced public statements of negotiating positions, or worse, out of date leaked documents.

The TPPA has the potential that a more international approach can be taken, that improvements can be made to the way we do business internationally - and to that extent new ground is being broken. It is a starting point.

I sometimes try to consider exactly what "Free Trade" is - even though there are international agreements that carry that name (or label), I am left with no clear answer. Most are a simplification of trade rules, or reduction (not removal) of tariffs so that there is a level, or close to level playing field.

Most of all, what I want is more balanced reporting on the TPPA.

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Bruce Hudson founder and CEO of Gantt NZ Limited and offshoot Enzman, a small marketing company dedicated to growing client's businesses. He is currently writing a book on Information Security, due out in September 2015.

Marketing tips: learn from political activists who get it wrong

Lobbyists protesting Nestle for their bottled water.

I've been corresponding on social media with a friend who is vegan, and we've been having some very interesting discussions. (No I'm not vegan, but defend people's right to choose.) With the latest discussion, the political aspect morphed into one about being active politically.

This goes to the heart of marketing, about convincing others to take action.

The cause he invited me to sign was a petition Governor Brown to stop exporting alfalfa to Asia because of the drought. As I laid out in another blog, I wouldn't be supporting the petition anytime soon, drawing the comparison that you might as well have a petition to give Californian fish bicycles. The exact points can be made with protesting Nestle's bottled water on the basis of water use.

Part of the reason I didn't sign was that the online petition made some fundamental marketing blunders - while the facts may have been correct, the conclusions the petitioner reaches are 'extraordinary' and not in a good way. The petitioner had lost the context within the big picture, Governor Brown necessarily has to concern himself with the thing that make a big difference.

My points made, can be summed up with the following:

1. Set written objectives. Drill down to what your core objectives are, and state them clearly. Frequently assess whether or not your actions are getting you closer to your objectives.
2. Research thoroughly; spending your time on initiatives that won't make a difference is a waste of your efforts - fight the big battle.
3. Pick your battles. Stack the cards in your favor by selecting those you have a fair or better chance of effecting real change. For example, encourage non vegan people to eat less meat etc, rather than to become vegan - which is a harder sell. The harder sell can come when the customer is ready.
4. Keep high standards of information. Make sure that not only that the facts are right, that conclusions are logical, they are presented clearly and are always voiced in terms of the bigger picture - the things that are important to the customer.
5. Protect your credibility. This is extremely important. The previous three points are ultimately about protecting your credibility, so if completed with tact and respect, the stature and reach your voice has will grow exponentially, and you will be seen as someone who helps effect positive change.

An article in a Southern Californian paper does a far better job of ticking the boxes - it's a far clearer message, and asks for a realistic action. It's interesting to note that if meat and dairy consumption were reduced, then the Californian water woes would improve overnight. Reducing meat and dairy is a smaller step and a more likely of success than battling to prohibit alfalfa exports to Asia.

And there are direct parallels in marketing, as most seasoned marketers will be well aware of. Even consumers are familiar with price leaders, the amazing deal designed to wildly increase sales of discounted products, with the knowledge that once consumers have their wallet out, more purchases often follow.

Lobbyists please take note.

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Bruce Hudson founder and CEO of Gantt NZ Limited and offshoot Enzman, a small marketing company dedicated to growing client's businesses. He is also writing a book on Information Security, due out in September 2015.