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.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news