bilaterals.org logo
bilaterals.org logo

New Zealand-China

On 7 April 2008, New Zealand and China signed a comprehensive bilateral free trade agreement. It was the first bilateral FTA that Beijing signed with a so-called developed country. It entered into force on 1 October 2008.

The NZ-China FTA has raised a number of concerns among New Zealanders, especially relating to:

 weak food safety and environmental standards behind China’s agricultural exports to NZ, which are bound to multiply because of the deal;
 the labour conditions and lack of rights that Chinese workers are subject to, which the FTA does not address;
 China’s broader human rights record, including the repression in Tibet;
 the ability of Chinese corporations to now sue the New Zealand government if it were to restrict, in any way, Chinese trade or investment on grounds relating to labour rights, environmental standards or health concerns; and
 the inability of New Zealand’s fruit and vegetable producers to compete with the influx of Chinese imports, given the lower wages in their production costs.

A number of New Zealand business groups eager to expand operations in China were happy with the deal, of course. One of these was Fonterra, New Zealand’s largest company and the third largest dairy exporter on the planet. Fonterra took advantage of the agreement to buy up Chinese dairy companies and further build its business in the mainland. But when the melamine milk scandal broke in September 2008 and the public learned that Fonterra — which owned 43% of Sanlu, the first Chinese company linked to the milk — knew of the contamination months before but never said anything, the recriminations came pouring in. (More than 300,000 people fell ill and six infants died of kidney failure as a result of the contamination. And by the end of 2008, Sanlu went bankrupt.)

last update: May 2012
Photo: Colt International Limited / CC BY-NC-ND 2.0


Textile Union Welcomes Tariff Freeze
Today’s announcement by Commerce Minister, Lianne Dalziel, of a freeze on general tariff reductions for two years from July 2009 has been welcomed by the National Distribution Union. The NDU represents workers in the textile, clothing and footwear industries.
US trade expert finds fishhooks in FTA
While media coverage of the China-NZ Free Trade Agreement has focused almost entirely on the possible dollar gains, scant attention has been paid to the equally valid exposure of New Zealand to compensation claims — should any NZ government be so bold in future as to pass laws or regulations that a foreign investor feels will impact on profitability.
Handled with tact, FTAs can do what WTO can’t
On April 7, China and New Zealand signed a free trade agreement (FTA) covering trade in goods and services as well as investment, making it the first FTA reached by China with a developed country.
Free trade agreement not to blame - Cullen
The Government was stung by suggestions yesterday that its much vaunted free trade agreement with China was linked to the loss of 430 jobs in Fisher and Paykel’s Mosgiel dishdrawer plant and hit back at the company.
A fairly thorough analysis of the NZ-China FTA
China will now be seeking to extrapolate figures upwards in every other developed country FTA — starting with Australia — into very significant numbers, based on what we, with our tiny population, were willing to concede.
Million dollar China deal 48 hours after free trade agreement
New Zealand apparel company Norsewear is one of the first to benefit from the recently signed free trade agreement with China — securing an order worth close to a million dollars in less than 48 hours after the historic deal was signed.
Peters swears to be good on FTA
Foreign Affairs Minister Winston Peters appears to have backed down on a threat to criticise the free trade agreement with China while he is overseas, promising the prime minister he will not denounce it publicly.
NZ First’s China advertisement to be investigated
The Electoral Commission will consider a New Zealand First advertisement that appeared in daily papers this morning at their next meeting.
Winston’s message: No to the FTA
Foreign Minister Winston Peters says New Zealand could have done better than it did in the free trade agreement it signed on Monday with China, and that is why his New Zealand First party won’t support it.
Trade pact is front page news
China’s trade deal with New Zealand has made the front pages in Beijing.