01 December 2004

An American Chamber of Commerce business climate survey of US companies operating in New Zealand finds that an overwhelming majority describes their local investments as successful, and were positive about future growth opportunities.

87% of respondents, representing a significant number of Fortune 500 companies, described their New Zealand operations as moderately or highly successful with 46% intending to expand their current business or invest in new start-ups. 84% forecasted sales growth over the next three years and 82% expect an increase in exports for the current financial year.

“The results of the survey show a much more positive attitude towards the investment climate and a greater pragmatism,” says AmCham president Michael Stanley. “It’s pleasing for New Zealand that our safe and stable environment, and geographic location close to major markets in Australia and Asia, is seen as a real asset,” says Mr Stanley.

Six per cent surveyed expected no impact on their New Zealand investment from the Australia-US Free Trade Agreement (FTA). 62% favored a FTA between New Zealand and the United States.

The survey also identified areas that, in the opinion of respondents, could be improved to make New Zealand more competitive and attractive to investors. The areas cited included the fluctuating exchange rate and an improvement in the costs of administrative, legal and compliance procedures.

The annual survey, conducted in August-September 2004, is used to progress AmCham’s focus in developing bilateral trade, commercial, and business ties. The results will also be reported back to the New Zealand government and business community to enable ongoing discussion and collaboration to address issues and make New Zealand a more attractive market for overseas investment. Investment New Zealand supported the development of the survey.

For more information:
www.amcham.co.nz