Warning to exporters on China FTA: move fast

Exporters are being warned to act quickly to lock in gains from the signing of the New Zealand China Free Trade Agreement today.

“The FTA is most welcome, but exporters will need to move fast to capture ongoing benefit from it,” said Alasdair Thompson chief executive of the Employers & Manufacturers Association (Northern).

“The trade advantage offered by the once-in-a-generation window could last no more than a year.

“Australia is likely to be amongst those hot on our heels, and once they have signed up, the phasing in of tariff cuts for them in China may have the same end date as for our products.”

EMA was regularly consulted and briefed by officials over the past couple of years as the FTA was negotiated, Mr Thompson said.

“We were at pains to ensure our exporter and other businesses views and needs were well understood by the negotiators.

“We are confident the government and our trade negotiators have done an excellent job.

“We understand from reliable sources in both main political parties that the agreement is of very high quality.

“We stand to gain as New Zealand is not required to give up much; already no duty is payable on about 95 per cent of everything imported here.

“Overall New Zealand’s economy should benefit by the expected $300-350 million a year, but if we are to capture the benefits longer term, our exporters will need to act quickly.”