Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Primary sector exports under threat from Australia-China FTA

Media release
18 September 2013

Primary sector exports under threat from Australia-China FTA

New Zealand’s first mover advantage from its China free trade agreement (FTA) is at risk of being diluted as Australia’s newly-elected Government looks to conclude its own FTA with China, according to global accounting body CPA Australia.

CPA Australia country manager for New Zealand, David Jenkins, says after eight years of inconclusive negotiations the new Australian Government will likely seek to finalise a free trade agreement with China within 12 months.

“While recent food safety scares have been a big wake-up call for New Zealand exporters, now is definitely not the time to be complacent or fall back on the fact we were first with a China FTA. 

“There are many barriers that Australia and China still need to overcome before a free trade agreement can be concluded, particularly in the financial services space, but these barriers are not insurmountable.”

Mr Jenkins says Australia’s priority areas for a China FTA will be in areas where New Zealand’s traditional advantages lie: dairy, sheep meat, beef, wine and horticulture.

“An Australia-China FTA would mean more competition for Kiwi exporters, particularly in the primary sector.  Currently, it is reported that New Zealand exporters of products such as lamb, beef and wine enjoy a 10 to 15 per cent price advantage over our Australian competitors, and this price advantage is attributed primarily to the New Zealand-China FTA.”

Mr Jenkins says New Zealand businesses cannot assume that this price advantage will continue – and they should be using the period leading up to the commencement of a probable Australia-China FTA to build on their competitive advantages, including deepening existing relationships, building new relationships and new product development.

“The assumption that New Zealand exporters must work under is that an FTA between Australia and China will be signed soon, and they must prepare for greater competition.  Those that act now to improve competitiveness and productivity are more likely to succeed in the emerging environment. Those that are complacent are more likely to fail, regardless of their size.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news