Scoop Business

New Zealand China FTA Upgrade Negotiations is Good News

Monday, 21 November 2016, 3:16 pm
Press Release: Dairy Companies Association of New Zealand

Launch of New Zealand China FTA Upgrade Negotiations is Good News

Dairy Companies Association of New Zealand (DCANZ) welcomes the announcement that New Zealand and China are commencing negotiations towards a Free Trade Agreement (FTA) upgrade.

The New Zealand China FTA has supported the development of dairy trade and dairy related investment between New Zealand and China over the last eight years. DCANZ is pleased that both Governments have committed to exploring how this framework can be further enhanced.

“DCANZ’s priority is for more comprehensive coverage of trade during the period of transition to full tariff elimination for dairy products in 2024, in recognition of strong Chinese import demand,” said DCANZ Chairman Malcolm Bailey.

Overall the New Zealand China FTA is a high quality agreement, which features a complete elimination of all import tariffs on all dairy products in 2024.

However, current transition arrangements mean less than a quarter of the dairy products that China is importing from New Zealand are receiving tariff reductions.

DCANZ said the rapid expansion of Chinese consumer demand for dairy products was not anticipated when the agreement was originally negotiated.

“Extending the coverage of tariff preferences will reduce tariff related costs for Chinese consumers. It will also ensure that New Zealand exporters do not end up at a tariff disadvantage to Australian exporters as we transition towards tariff elimination,” said Mr Bailey.

Advertisement - scroll to continue reading

The Australia China FTA does not feature the same quantitative limits on tariff preferences for butter and skim milk powder.

Imported dairy products play an important role in complementing local production to meet Chinese consumers demand for dairy nutrition.

“Despite the expansion in both domestic production and imports over the last decade, Chinese [per capita] dairy consumption remains low. It’s around half of the Asian consumption average and a third of the global average dairy consumption level,” said Bailey.

New Zealand exported NZ$2.77 billion of dairy products to China in 2015.

ENDS

Advertisement - scroll to continue reading

Using Scoop for work?

Scoop is free for personal use, but you’ll need a licence for work use. This is part of our Ethical Paywall and how we fund Scoop. Join today with plans starting from less than $3 per week, plus gain access to exclusive Pro features.

Join Pro Individual Find out more

Find more from Dairy Companies Association of New Zealand on InfoPages.

Business Headlines | Sci-Tech Headlines

BUSINESS, SCIENCE & TECH

Bill Bennett: Download Weekly - Review Of 2024

A look back at the New Zealand telecommunications sector’s biggest news stories and themes over the past year.

Bill Bennett: One NZ scores worldwide first as Starlink direct-to-mobile launches

In the latest Download Weekly newsletter: One New Zealand squeaked in ahead of the year end with its promised 100 percent coverage launch. The Commerce Commission is thinking about fibre deregulation.

Hugh Grant: How To Reduce Network Bottlenecks

There's nothing wrong with taking immediate action to resolve a bottleneck in progress, but if you want to avoid issues as much as possible, you need to be working proactively.

Dominion Road Business Association: Auckland Transport's 'Bus To The Mall' Campaign: A Misuse Of Public Funds And A Blow To Local Businesses

AT's decision to promote privately owned malls at the expense of small businesses is a slap in the face to the hardworking entrepreneurs who form the backbone of our communities.

Parrot Analytics: A Very Parrot Analytics Christmas, 2024 Edition

Parrot Analytics data confirms that the supply of Christmas movies has surged over the last two decades, growing sixfold from 2000 to 2023. The peak of new Christmas movie releases came in 2020, a time when audiences turned to feel-good content amidst global challenges.