Benefits And Cost Of Nz-China Free Trade Agreement

April 8, 2021

New Zealand exporters will benefit from new rules that will facilitate exports to China. China has agreed that authorized exporters can self-declare their products as New Zealand products under the free trade agreement, as another certification option by other organizations. This change will give exporters additional choices, reduce compliance costs and save our exporters millions of dollars a year. The result is the result of nearly three years of negotiations. Next steps include a legal review of the draft text, which is expected to be signed and published in early 2020. China is New Zealand`s largest trading partner, with two-way trade recently exceeding $32 billion. This shows, in a way, how dependent our exporters are on China`s goodwill – agreements or not. According to Statistics New Zealand and the Department of Foreign Affairs and Trade (MFAT), total merchandise trade between New Zealand and China doubled between 2009 and 2014 to $20 billion. in theory. But last week, when asked if he thought China recognized the clause of our agreement, Key`s response didn`t really gain confidence. It removes barriers to trade in goods, services and investment and strengthens New Zealand`s relations with China in a number of other cultural, social and political areas.

In addition, a procedure for resolving commercial disputes is in place and may occur. In short, we must reconcile the serious influence of the Chinese government in the Chinese language media of the NZ, as well as other serious problems of corruption and sovereignty, a boom and a bankrupt economy focused on raw materials, with the avoidance of better investments, the suspension of local democracy, a housing bubble, a huge and unsustainable private debt , including a large industry, the dairy industry. , poisoned aquifers, poor quality imports, lack of availability for prohibited commercial goods and gaps in labour law. The challenges of the TPP are not the same as those of the free trade agreement with China, but the impact and its unforeseen nature are certainly just as important in determining whether the free trade agreement is ultimately beneficial to New Zealand and whether these benefits will be widespread. New chapters on e-commerce, the environment and trade, competition policy and public procurement have been added, reflecting the progress made in trade rules and business practices over the past decade. These chapters offer opportunities for enhanced cooperation in these areas. The government will lobby, long after this week`s trade trip, until there is an upgrade. More progress is unlikely to be made within a week. The “Most Favoured Nation” clause is a common clause embedded in free trade agreements to ensure that neither nation is disadvantaged by better terms negotiated in future trade agreements. Further reductions meant that as of January 2013, more than 70 per cent of Chinese exports to New Zealand were duty-free. A number of New Zealand business groups wishing to expand their operations in China were naturally satisfied with the agreement.

One of them was Fonterra, New Zealand`s largest company and the world`s third largest exporter of milk. Fonterra benefited from the agreement to buy Chinese dairy companies and develop its activities on the continent. But when the melamine milk scandal broke in September 2008 and the public learned that Fonterra – which owned 43% of Sanlu, China`s first milk-related company – was aware of the contamination months earlier, but never said anything, the accusations arose. (More than 300,000 people became ill and six infants died from kidney failure due to contamination. And at the end of 2008, Sanlu went bankrupt.) So let`s take a look at the agreement; What is it? Where is it too short,