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Report: Catherine Clifford
Fifteen years in the making and lot of negotiations later, New Zealand has scored a coup by being the first developed country in the world to strike a Free Trade Agreement (FTA) with China.Under the FTA, New Zealand will have 97 per cent of tariffs on its exports to China removed by 2019.With farm output making up half of New Zealand's annual economic production, the deal is expected to double the nation's exports of meat and skins to China in the next year.It will add $11-million to current apple export volumes, and give New Zealand special status with its wool quota.President of the Federated Farmers of New Zealand, Charlie Pedersen, says he's elated."This has really been a long-haul project for our people at the Ministry of Foreign Affairs and Trade in the New Zealand government," he says.Charlie Pedersen says all areas of New Zealand agriculture will benefit from the deal because the Chinese is a massive market for any country that produces and exports food and commodities."There'll be about NZ$160-million in wool exports that will benefit," he says.Prior to the FTA being signed, New Zealand had to join other wool exporters in bidding for a share of the world's 287,000-tonne international quota set by China. Now, China is promising to take from New Zealand an initial 27,000 tonnes and increase that figure to 37,000 tonnes over the next nine years.Charlie Pedersen adds that the country's dairy industry will be a big winner, too."Dairy is the biggest exporter to China out of New Zealand by volume and by value, so about NZ$350-million of dairy exports a year," he says.Executive Director of the Dairy Companies Association of New Zealand (DCANZ), Jason Minkhorst, has applauded the deal.He says New Zealand's 11,000 dairy farmers will benefit from improved access to a rapidly growing consumer and ingredients market."Most of New Zealand's dairy products are exported, about 95 per cent, so China will become increasingly important to us," he says.But across the Tasman, president of Dairy Farmers Australia and the chairman of the Australian Dairy Industry Council, Allan Burgess, admits he's worried.Mr Burgess is calling on the Federal Government to fast-track its FTA negotiations with China to ensure Australian farmers are not left behind."It certainly puts Australia at some disadvantage in that New Zealand has some preferential agreement with China now," he says."We would hope it's the starting point from which the Australian FTA with China is built and we would hope that happens really soon," says Mr Burgess.
Fifteen years in the making and lot of negotiations later, New Zealand has scored a coup by being the first developed country in the world to strike a Free Trade Agreement (FTA) with China.Under the FTA, New Zealand will have 97 per cent of tariffs on its exports to China removed by 2019.With farm output making up half of New Zealand's annual economic production, the deal is expected to double the nation's exports of meat and skins to China in the next year.It will add $11-million to current apple export volumes, and give New Zealand special status with its wool quota.President of the Federated Farmers of New Zealand, Charlie Pedersen, says he's elated."This has really been a long-haul project for our people at the Ministry of Foreign Affairs and Trade in the New Zealand government," he says.Charlie Pedersen says all areas of New Zealand agriculture will benefit from the deal because the Chinese is a massive market for any country that produces and exports food and commodities."There'll be about NZ$160-million in wool exports that will benefit," he says.Prior to the FTA being signed, New Zealand had to join other wool exporters in bidding for a share of the world's 287,000-tonne international quota set by China. Now, China is promising to take from New Zealand an initial 27,000 tonnes and increase that figure to 37,000 tonnes over the next nine years.Charlie Pedersen adds that the country's dairy industry will be a big winner, too."Dairy is the biggest exporter to China out of New Zealand by volume and by value, so about NZ$350-million of dairy exports a year," he says.Executive Director of the Dairy Companies Association of New Zealand (DCANZ), Jason Minkhorst, has applauded the deal.He says New Zealand's 11,000 dairy farmers will benefit from improved access to a rapidly growing consumer and ingredients market."Most of New Zealand's dairy products are exported, about 95 per cent, so China will become increasingly important to us," he says.But across the Tasman, president of Dairy Farmers Australia and the chairman of the Australian Dairy Industry Council, Allan Burgess, admits he's worried.Mr Burgess is calling on the Federal Government to fast-track its FTA negotiations with China to ensure Australian farmers are not left behind."It certainly puts Australia at some disadvantage in that New Zealand has some preferential agreement with China now," he says."We would hope it's the starting point from which the Australian FTA with China is built and we would hope that happens really soon," says Mr Burgess.
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