Exporters 'dumped on' in China deal

Export New Zealand's international trade committee head Gilbert Ullrich says its concerns are not being taken seriously. Picture / Fotopress

Some exporters believe their concerns about a free-trade agreement with China are being brushed aside in the Government's drive to secure a deal.

An official feasibility study published in late November concluded that both nations would benefit from a bilateral trade deal, paving the way for formal negotiations.

But Export New Zealand sees scant evidence in that document that its concerns are being taken seriously or will be vigorously pursued.

"It appears to sanitise the input of major New Zealand industry sectors, many of whom are being dumped on," said Gilbert Ullrich, who heads Export New Zealand's international trade committee.

"I'm convinced the Government is committed to ensuring New Zealand is the first developed country to finalise a free-trade agreement with China, irrespective of the ultimate cost to New Zealand industry, jobs and the economy."

But David Walker, who headed the China FTA task force within the Ministry of Foreign Affairs and Trade, said it was still early in the process.

The study was about whether it was in the two countries' interest to enter into negotiations, he said. Whether an agreement was concluded depended on whether both countries still thought it was in their national interest at the end of the process - during which there would be more consultation with business.

Among exporters' concerns are rules of origin, standards, intellectual property rights and subsidies.

The concern about rules of origin (which lay down how much local content goods must have to be counted as made in New Zealand) is that this country will come to be seen as a back door for Chinese goods to enter Australia duty-free, to the detriment of Closer Economic Relations with that country.

The concern about standards relates to the ability of New Zealand authorities to enforce local standards when faced with more Chinese wares. Ullrich said substandard Chinese aluminium ladders were already implicated in accidents here.

Export New Zealand vice-president David Binning said it was unrealistic to expect the Chinese Government to enforce either product standards or intellectual property rights on the innumerable back street enterprises which produced much of China's output.