China trade deal to expand
Visiting Premier and English agree on April 25 start for talks
Negotiations for an “upgrade” to the New Zealand-China free trade agreement will begin next month, a step Prime Minister Bill English said would help boost trade to $30 billion.
The April 25 start date for talks was announced after a meeting with China’s visiting Premier, Li Keqiang, in Wellington.
English said New Zealand was hoping for better access for some exporters. It has been pushing for an upgrade since Australia signed its free trade agreement in 2015 on better terms than New Zealand’s 2008 model.
After the meeting, Li strongly rejected any claims China was “dumping” steel in the New Zealand market.
The Ministry of Business, Innovation and Employment is investigating claims of dumping — an investigation that has caused problems with China in the past.
Li said 90 per cent of Chinese steel was used domestically. He acknowledged there was a global oversupply
HWatch video of Premier Li at nzherald.co.nz
and said China last year began scaling back production. He said zinc-coated steel made up just 5 per cent of all steel New Zealand imported.
“Most of New Zealand’s steel imports come from other countries, not China.”
He pointed out that 50 per cent of China’s dairy imports were from New Zealand. “But we haven’t said New Zealand is dumping dairy products.”
Li’s denial on steel followed a more confused answer which appeared to acknowledge the possibility of dumping but was put down to confusion with the translation.
Speaking later, English said it was a sensitive issue for China and the investigation was being done at “arm’s length” from the Government.
He was not surprised when Li had countered by raising dairy exports, saying that demonstrated the “robustness” of the relationship with China.
English said the FTA upgrade would help achieve the Government’s target of $30b in two-way trade by 2020 — up from $23b now.
Li, speaking through a translator, pointed to the importance of bolstering free trade at a time of a backlash against globalisation and free trade.
“This will give a strong boost to trade links between China and New Zealand and will send a positive signal to the world and to the region that our two countries are committed to free trade.”
However, English was less effusive about New Zealand signing the China-led Regional Comprehensive Economic Partnership agreement, saying there were questions about whether it would be as high quality as New Zealand wanted. “With RCEP that’s a bit of a challenge.”
English said the pair had discussed China’s role in international security and matters such as the South China Sea, which he said should be dealt with according to interna- tional rules.
“We know it’s a sensitive issue between New Zealand and China and we don’t think it will have an impact on the rest of the relationship, but New Zealand’s expectation has not changed.”
They also discussed North Korea, and Li had emphasised China’s interest in stability.
“The Premier simply expressed the desire of the Chinese to maintain the kind of stability that has fed the economic growth that has benefited everybody.”
English said there was discussion about the US-China relationship since the election of US President Donald Trump, saying Li had been positive about it and pointed to the economic interdependence between the two.
“We expressed New Zealand’s interest in that being a functional, positive relationship because if it isn’t it has a significant economic and political impact.”
He said Li was an economic expert and knew what was at stake.
English and Li announced a raft of agreements ranging from the free trade agreement upgrade to an agreement for China to export peeled onions to New Zealand.
New Zealand also became the first to sign China’s “Belt and Road” initiative — a programme of transport infrastructure and technology “corridors” across the world which could result in joint infrastructure projects.