FTA between China, New Zealand now in full implementation: Chinese Embassy

All dairy products exported from New Zealand to China are now able to enter China duty-free and quota-free, reflecting China's fulfillment of its commitments of tariff elimination under the China-New Zealand Free Trade Agreement (FTA), and the full implementation of the FTA, the Chinese Embassy in New Zealand said on Wednesday.

With?the?special?safeguard?measures?on?milk?powder removed as of?January?1, 2024,?as?part?of?the?China-New?Zealand?FTA, all?New?Zealand?dairy?products?are?now?able?to?enter?China?duty-free and quota-free, a spokesperson for the embassy said in a statement released on its website.

According to the World Trade Organization (WTO), a WTO member may take a "safeguard" action under the WTO Agreement on Safeguards to protect a specific domestic industry from an increase in imports of any product which is causing, or which is threatening to cause serious injury to the industry.

"It's really good news not only for dairy farmers but [also for] the New Zealand economy," New Zealand Trade and Agriculture Minister Todd McClay said, according to local media reports

New Zealand's annual dairy exports to China have averaged 1.4 million tons annually during the past three years, around half of which is milk powder, Radio New Zealand reported.

China?signed?the?FTA?with?New?Zealand?in?April?2008,?which?came?into?force?in?October?the?same?year.?It?was?China's?first?comprehensive?bilateral?FTA?covering?trade?in?goods,?services?and?investment, and?also?an?FTA?China?entered?into?in?a?world?first?for?any?developed?country.?

Since?it?was?signed?and?entered?into?force?in?2008,?the?FTA,?as?a?propeller?for?bilateral?trade,?underpinned?economic?cooperation?between?the?two?countries?and?brought?tangible?benefits?to?the?two?peoples, the spokesperson said.

Total?trade?in?goods?between?China?and?New?Zealand?increased?from?$4.4 billion?in?2008?to?$25.4 billion?in?2022,?growing?at?an?average?annual?rate?of?13?percent,?while?New?Zealand's?exports?to?China?have?shown?an?average?annual?growth?rate?of?17?percent.?

For?more?than?10?years?ever?since,?China?has?been?New?Zealand's?largest?trading?partner,?export?destination?and?import?source.

The?huge?Chinese?market?has?also?brought?enormous?trade,?economic?and?job?opportunities?for?New?Zealand,?while?quality?products?made,?assembled?or?produced?in?China?at?affordable?prices?have?played?an?important?role?in?keeping?a?lid?on?the?cost?of?living?for New Zealanders.?With?all?New?Zealand?dairy?products?now?able?to?enter?China?duty?free,?it?is?expected?to?inject?new?impetus?into?our?bilateral?practical?economic?and?trade?cooperation, the spokesperson said.

"Standing?at?a?promising?new?start,?the?two?countries?will?embrace?unprecedented?new?opportunities?to?deepen?our?cooperation?across?the?board, the spokesperson said, adding that?this?year?marks?the?10th?anniversary?of?the?establishment?of?the?Comprehensive?Strategic?Partnership?between?China?and?New?Zealand.?China?stands?ready?to?join?hands?in?hands?with?New?Zealand,?and?take?the?opportunity?to?tap?into?potentials?of?bilateral?cooperation?with?mutual?benefits.