Tuesday, 10 November 2015 12:12

Free trade just the start

Written by  Pam Tipa

Even with a free trade agreement you can have "enormous challenges" if you don't have authorities on each side of the border supporting the passage of goods, Prime Minister John Key says.

If New Zealand does not give exporters the sort of support and services that they need, it will make their lives very difficult, he told a China Business Summit in Auckland yesterday.

New Zealand is a long way away, "we are the last bus stop on the planet", he said.

"So the point where a New Zealand company says I am going to go to Shanghai or Beijing or some part of China to sell a product because I can see there are 1.3 billion consumers there that are rapidly becoming middle income, that's easy.

"The hard bit is the legal issues, the language issues, the accounting issues, the in-country support, where they pick a partner, where they can rely on a partner – all of those kinds of things are much more challenging and for a country like New Zealand that happens much earlier on in the development of that company.

"If they were in Australia they could move from one state to another, become a critical mass, then think about exporting. In New Zealand's case it is not always as easy as that."

Nevertheless he said the China story is a big success, based on underlying fundamental consumer demand.

The $5 billion of dairy product and the infant formula going into China reflects that China has 20 million babies a year. With a two child policy, that will increase, he said.

"We know they highly value the quality and safety of the New Zealand product," he said.

He says to get two-way trade between New Zealand and China to $30 billion by 2020 is possible but some changes are needed, including more investment.

More like this

Editorial: We are Trumped

OPINION: Nothing it seems can be done in the short term to get Donald Trump to change his mind about removing the unfair 15% tariffs that he’s imposed on New Zealand exports to the US.

Featured

Dr Mike Joy says sorry, escapes censure

Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.

People-first philosophy pays off

The team meeting at the Culverden Hotel was relaxed and open, despite being in the middle of calving when stress levels are at peak levels, especially in bitterly cold and wet conditions like today.

Farmer anger over Joy's social media post

A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.

From Nelson to Dairy Research: Amy Toughey’s Journey

Driven by a lifelong passion for animals, Amy Toughey's journey from juggling three jobs with full-time study to working on cutting-edge dairy research trials shows what happens when hard work meets opportunity - and she's only just getting started.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Faking it

OPINION: Demand for red meat is booming, while it seems the heyday of plant-based protein is well past its 'best…

M.I.A.

OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter