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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news