China deal: Winners, losers
New Zealand’s upgraded free trade deal with China is a win for fresh seafood exporters.
Companies selling fresh, perishable goods like seafood into China will now have goods expedited through customs clearance in six hours. This will mean the release of goods outside normal business hours and ensure goods are stored properly.
The existing free trade agreement was upgraded this week after years of negotiations.
The announcement was made by Prime Minister Jacinda Ardern after meeting Chinese Premier Li Keqiang at the East Asia Summit in Bangkok.
Seafood New Zealand chief executive Tim Pankhurst said the efficiencies at the border were a welcome change.
‘‘Any improvements in the customs border clearance processes are welcome, especially as the value of chilled and live seafood to China was less than 0.1 per cent in 2008 and is now around 51 per cent of the total value of trade to China.
‘‘That we have been promised a maximum six-hour turn-around is significant,’’ he said.
The volume of seafood being exported to China had decreased, but the value of the exports kept climbing, Pankhurst said.
In 2018 the trade was worth $596.6 million for 67,000 tonnes of seafood, compared to 2008 when it was worth $163m for 80,000 tonnes.
Wood products also gained from the upgrade, with preferential access to China’s markets. Duties were removed from 12 wood and paper products, worth $36m.
Pan Pac Forest Products, which exports between $150m and $160m worth of goods to China each year, said in principle the
Tim Pankhurst Seafood NZ chief executive
upgrade was good news.
‘‘There is no immediate impact on our current log, lumber and woodpulp exports as the these are already tariff free,’’ managing director Doug Ducker said.
International Business Forum executive director Stephen Jacobi said he wasn’t sure how significant the ‘‘small increase’’ for the sector would be, because duties were not high in the first place.
However, the country as a whole would benefit from the improved relationship, he said.
Manuka Honey export company Richora said the upgrade was a ‘‘huge improvement on cultural exchange’’.
Chief executive Jerry Li said the agreement not to impose duties on electronic transmissions would drive economic development in New Zealand by attracting Chinese investors and consumers.
The dairy sector may have been disappointed there were no changes to the timetable to eliminate tariffs by 2024, but Jacobi said there was no real expectation that would change.
Dairy Companies Association of New Zealand chairman Malcolm Bailey said the organisation was ‘‘naturally disappointed’’ that the sector had not been given specific gains in the upgrade and the complete elimination of tariffs was the ultimate outcome it sought from all free trade agreements.
‘‘Any improvements in the customs border clearance processes are welcome.’’