10 May 2004

China & NZ have agreed to start formally working towards a Free Trade Agreement next year. The framework will be signed in June 04, which will enable work on a detailed feasibility study and public consultation with relevant industry sectors to begin. Negotiating positions will not be developed until after this research is completed.

China is one of fastest growing economies in the world. Such an agreement will see the agricultural sector benefit as forest products, dairy & meat are among NZs major exports and are also among Chinas major imports.

The agreement could possibly see the removal of tariffs to China on milk powder, wool, meat, forestry, & kiwifruit.

On the other side of the fence, NZ manufacturers stand to lose as tariffs are removed in NZ on manufactured goods. Opponents of freetrade developments argue that NZ cannot compete with the sweatshop labour conditions that Chinese workforces face.

See www.mfat.govt.nz for more info