New Zealand’s free trade with China

This week’s announcement by the New Zealand government that it has become the first developed country to secure a free trade deal to export a variety of goods to China, has sparked reactions in the UK.

Dairy UK notes that it does not expect the country’s dairy interests to be prejudiced by the agreement, adding that the UK, as with Europe as a whole, was not reliant on exports and that China remained just one of many burgeoning markets in Asia that was recording substantial increases in demand for dairy products.
Earl Rattray, chairman of the Dairy Companies Association of New Zealand (DCANZ) says that the agreement, which is expected to gradually reduce tariffs for the country’s dairy goods entering the Chinese market over the next five to 12 years, will be a significant benefit to its members.
“While it is too early to quantify those benefits without seeing the specifics of the text, there will advantages for dairy exporters in terms of reduced tariffs, easier access to the China market, and a head start on other dairy exporting nations seeking to leverage the rapid growth in dairy consumption in China,” he states.