We have to fix the overseas home

The New Zealand-China Free Trade Agreement was established by Labour in 2008, led by then-Trade Minister Phil Goff, now Auckland Mayor. We remain proud of the FTA.

Trade with China has grown enormously since then. However, total New Zealand exports to the world have dropped from 30 per cent of GDP nine years ago to 27 per cent of the economy now.

The focus of the FTA update should be two-fold: to address nontariff barriers, and restore the right of a future Government to ban the sale of New Zealand homes to overseas buyers.

Non-tariff barriers can be used to frustrate or complicate the sale of New Zealand goods or services into China. Application of fair rules at the border is of course proper in New Zealand as well as China. But fair regulatory rules need to be clear and based on legitimate criteria such as quality assurance.

Rules favouring one seller over another, or biased in favour of goods with less value added (for example, partly processed livestock or forestry products) undermine New Zealand processors and jobs, and are inconsistent with the objectives of the FTA.

Controversial examples of other non-tariff barriers alleged include the refusal to accept kiwifruit into China after complaints were made about Chinese steel being dumped at low prices into New Zealand.

Some say this was retaliation. Others allege inconsistent barriers put in the way of infant formula sellers, depending on whether the New Zealand seller was or was not partly owned by Chinese investors.

It is unnecessary to conclude whether or not these allegations were correct — we should be able to agree to rules against such practices, and mechanisms to speedily resolve such issues if they arise.

The other crucial issue to fix is the right of Government to ban the sale of our homes to overseas buyers. This is the largest area of disagreement on