New Zealand pens FTA with China
New Zealand has become the first developed country to sign a free trade agreement (FTA) with China. However, the New Zealand Manufacturers and Exporters Association (NZMEA) has some reservations concerning the benefits of the agreement.
Meat & Wool New Zealand chairman, Mike Petersen, believes the agreement will give the country's farmers preferential access for wool and wool products as well as meat exports.
The FTA still needs to be ratified through parliament, where all the details will be carefully scrutinised. According to NZMEA chief executive, John Walley, "much examination still needs to be done post-deal and only then can we estimate the extent of its outcome for our economy”.
He says: “This position is not about being anti-competition or calling for protective tariffs and barriers to remain in place, but it is about ensuring a level playing field. It recognises that New Zealand cannot have a FTA with China under the same terms that it would with other developed countries due to the huge differences in economies of scale and labour costs. This agreement might offer significant, immediate benefits to our economy, but the converse could apply in the long term.
“The China FTA provides the opportunity to prevent poor quality imports coming into New Zealand that not only undercut the profitability of local firms, but also place the safety of the consumer at risk. Any agreement will need to be enforced, and details of the agreement open to a full examination prior to substantive comment. However, what we will look for is a fair deal for our companies and the wider New Zealand economy in the future”.
