Silver Fern plans 50:50 deal with Chinese
Silver Fern Farms' board plans a 50:50 partnership with China's leading meat processor Shanghai Maling, a listed company based in Shanghai, owned 38% by Bright Food Group.
Chinese Taipei’s dairy import tariffs range from 5% to 15%. A reduction would lift returns to New Zealand dairy exporters and lead to new growth opportunities, Tucker says.
The news last month that New Zealand and Chinese Taipei are considering economic cooperation could add to New Zealand’s trade agreements in the Asia Pacific region.
“[Given] New Zealand’s existing FTAs with China and Hong Kong, Chinese Taipei has been a missing piece of the puzzle until now,” Tucker says.
“A similar agreement with Chinese Taipei would deepen our partnership with the broader China economy and lead to new opportunities for New Zealand dairy exporters.”
Chinese Taipei buys New Zealand milk powders, butter and cheese. Exports there were worth at least $330 million in 2010.
“It is good news to see the Government looking to negotiate new trade agreements with important export markets for our dairy exports,” says Tucker.
Trade Minister Tim Groser says Chinese Taipei is an important trading partner but even after its WTO accession it retains high barriers to our exports.
“New Zealand follows a ‘one China’ policy. [We] signed a FTA with China in 2008 and a Closer Economic Partnership with Hong Kong in 2010. The FTA with China has been spectacularly successful.
“I hope economic cooperation with Chinese Taipei will substantially grow exports to this important economy.”
Last year Chinese Taipei was New Zealand’s 8th largest goods export market, totalling $897m.
A joint statement from the New Zealand Commerce and Industry Office, Taipei, and the Taipei Economic and Cultural Office, Wellington, says an agreement will be studied. New Zealand and Chinese Taipei are complementary economies, the statement says.
“They have a substantial trade and economic relationship. Any agreement would be expected to expand the economic relationship and deliver new business opportunities for both economies. [Both countries belong to] the WTO. If a negotiation is launched it will [conform to] WTO norms.”
