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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news