China talks get enthusiastic backing of exporter groups

By LIAM DANN


New Zealand's big exporters delivered a chorus of support for the formal announcement of free trade negotiations with China.

The meat, wool, wood, seafood and dairy sectors - all likely beneficiaries - have roundly welcomed the news from the Apec meeting in Chile.

Seafood Industry Council boss Owen Symmans said seafood exports to China could treble if the Government was successful in negotiating an agreement.

He said New Zealand already sold $100 million worth of fish and seafood products to China.

Forest Industries Council chairman Lees Seymour said a free trade deal with China was the one the wood sector desired most. Even though China had zero tariffs on logs and sawn lumber, it applied tariffs of about 10 per cent on more heavily processed wood products.

Seymour said the wood sector had identified China as one of the key markets it needed to develop.

It is estimated that China will need 260 million to 280 million cubic metres of wood in the next six years. Its domestic industry can supply only about half that.

Fonterra government and trade director Philip Turner said a free-trade agreement could provide benefits above and beyond tariff reductions.

He said China had low tariffs for dairy products but the trade deal could improve the environment for doing business in areas such as regulations and standards.

Fonterra was committed to a long-term partnership with China.

Meat and Wool New Zealand chairman Jeff Grant said the free-trade agreement promised to address market access and technical barriers along with other issues.

This year, New Zealand meat exporters had faced difficulties getting processing plants approved for trade with China.

The problem, to do with the certification of New Zealand plants, was largely resolved early this month.

Grant said it was expected that China would become an increasingly important market for meat and wool products.

"China does offer considerable opportunity, its economy is experiencing phenomenal growth and as the Chinese consumer acquires more wealth, demand for better and higher quality products is likely to increase."