China hikes tariff on NZ milk powder

Rural News

China hikes tariff on NZ milk powder imports to 10% from 5.8% after imports cross 100,000 tonne threshold; Not breach of FTA, Bloomberg reports

22nd Mar 12, 4:32pm by Bernard Hickey

China has increased its tariff on New Zealand milk powder imports to 10% from 5.8% after the imports crossed a 100,000 tonne threshold built into the Free Trade Agreement with China, Chinese news websites reported and Radio New Zealand reported.

The increased tariff puts New Zealand back into the regular category of a 'Most Favoured Nation' from its special status as part of the New Zealand-China Free Trade Agreement where it received a 5.8% tariff, it was reported. The change is reported to not be a breach of the FTA given the tariff hike was expected once imports passed the 100,000.

The New Zealand dollar fell sharply in afternoon trade to 80.7 USc from 81.5 USc in early afternoon trade, although traders said the fall was due to very weak Chinese factory production data in the HSBC-Market flash PMI data.

Radio NZ reported on Tuesday China had imposed penalty tariffs on New Zealand milk powder imports 12 times since the FTA began in 2008. See more here at Radio NZ.

A Ministry of Foreign Affairs and Trade website with information on the FTA showed China had released the provisional trigger volumes for 2012 in each of the four categories of dairy product exports. See more here.

The website says the threshold set by Chinese authorities for 2012 was 112,524.5 tons before which Special Agricultural Protections kicked in.

Radio New Zealand reported Trade Minister Tim Groser may raise the issue with Chinese officials in Beijing this week.

Voice of China reported the change earlier today here.

China Scope Financial reported the increase here on Monday.

(Updated with more detail/background)

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Source: GlobalDairyTrade and USDA

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17 Comments

by andyh | 22nd Mar 12, 4:40pm 1332387629

Never mind that - Chinese factories rapidly finding the reverse gear.

http://www.cnbc.com/id/46816971

But didnt Mr Key say China would keep us safe and sound. Ah well, better flog off something even more essential.........

by skudiv | 22nd Mar 12, 4:40pm 1332387635

Dead Swan?

by goldenfox | 22nd Mar 12, 4:45pm 1332387954

Nothing to do with the Crafer Farms?

by powerdownkiwi | 22nd Mar 12, 4:50pm 1332388238

A reasonable thought - I had it too - but probably not.

We can expect tarrifs, protectionism, trade break-downs and a trent to localism. It's were we're at.

by Colin Riden | 22nd Mar 12, 5:10pm 1332389423

This is not news. My understanding is that the first 100,000 tonnes pa have the 5.8%, and after that the tariff is 10%. Nothing has changed, no news, what don't journalists understand?

by Dannte | 22nd Mar 12, 6:37pm 1332394627

And all that while we are still accepting more Asian immigrant peasants

But that’s what you get due to Helen Clarke’s corporatistic FTA with China and a PC-induced immigration policy. Why don’t we invite them all over. After all, NZ is a socialist heaven.

by Wayno | 22nd Mar 12, 7:46pm 1332398779

Dannte - what uworthy and vile comments you make.

I'll take more 'Asian immigrant peasants' any day of the week over and above thse of othr closer 'nations'.

These folk addition to our society not a drain.

'PC induced immigration policy..... socialist heaven' - what planet are you on - The chinese who make the decision for NZ are anyhing but Socialists, they love the $$ just a much as you and I - just unlike most kiwis, this group will work very hard for it.

You sound like a jealous little person.

by Dannte | 22nd Mar 12, 8:31pm 1332401483

ay,Asian man, what's closer to NZ than any asian nation? Don't say Aussi. We are engulfed by asian peasants swarming out of their over-populated beehives. And you say it how it is...:" The chinese who make the decision for NZ........". go back and make a decision for your own people and don't suck on ours.

by kin | 23rd Mar 12, 8:27am 1332444460

Hear hear, so say our White skin but Red neck Pure New Zelander.....We certainly don't want hard working, Asian peasants coming here to work hard and pay taxes....afterall where else but in NZ that you can get $90,000 per year working only 26 hours instead of 40 hours ??

Don't let those Asian peasants break the work ethics and monopoly (of non work) of Pure White Red neck New Zealanders !!!

by LloydM1 | 23rd Mar 12, 9:33am 1332448396

Actually in very many cases I have witnessed first hand the the various asian communities trade amongst themselves almost exclusively. They are paid in cash, so no tax is paid, this even applies to retail stores, such as beauty salons. I know of multiple shops using visa status as a way of paying below legal wages, and the workers involved have no idea fo the law, or their own rights. In both cases I am aware of the salons were in two in AKL's more affluent suburbs.

Many asian students and wider community are gamblers, and many I know develop gambling problems, and then have to borrow money from "offshore" etc at very high interest rates around 10-20% per month. In one case I know, the manager of a language school in AKL was extorting money from students to fund his gambling problem, and he was also selling students visas which were part of their course costs..

These are only a few example of where in many cases the asian communities, are in fact not contributing to the local economy, other than the cheaper than supermarket prices of fruit and vege etc..

Money earned by workers flows back to their home country mostly, and there are entire money transfer industries, which they refer to as a "taxi" designed soley for the moving of cash inside the communities, locally and to abroad...

I could provide many further examples of the myth that immigration is actually helping NZ!

by kin | 23rd Mar 12, 10:35am 1332452139

What a laugh !! In all your ramblings, you seem to state the case of Asian immigrants being exploited rather than being a liability to the state. Whether they are being exploited by White New Zealanders or by Asian New Zealanders is beside the point .

Your case of gambling Asian running amok to borrow high interest loans for their gambling habits benefits only one New Zealand Institution....SKY CASINO. (Whose ownership I am sure conssist mainly of White New Zealanders.)

Your generalisation of Asian in New zealands is insulting and full of ignorance and racial hate. Perhaps you would like to look into REAL statistics into :

1. Percentage of population in Welfare based on race/ethinicity

2. Percentage of population in Jail based on race/ethinicity

3. Percentage of population based on employment (therefore paying taxes to fund the rest of the freeloaders)

Perhaps if you took the time to look into real statistice instead of racially offensive prejudicial anecdotal inncidents, you will find comfort among colours ....

by LloydM1 | 23rd Mar 12, 10:51am 1332453114

My girlfriend is asian, and the ramblings you refer are some of the experiences she has had in 3 years in NZ! Maybe you can talk with her to get an understanding of how things hang together, and how she feels about the immigration/exploitation you seem to belittle!

The reason I posted it is because there was query around immigration, to which I gave some real life experiences of where immigration/exploitation can meet.

In your craving to use the race card, and other exciteable words, you have taken what I posted completely out of context.

You know nothing about the situation I write, nor what I know or have seen, or am involved with. You also know nothing about the warfies wages or the ongoing issues, because I am certain you are little more than a commentator who reads the NZH. Maybe best you leave the unqualified use of slander out of it I would say!

Off you go!

by David B | 23rd Mar 12, 11:08am 1332454097

I can vouch for what you say, Lloyd, as being accurate. I have extensive contacts across the spectrum of the Asian immigrant/ student population here in NZ, and many East and South Asians tell me these exact same things on a regular basis.

by David George | 23rd Mar 12, 8:31am 1332444665

What sort of a deal are we getting with this half arse (so called) free trade agreement with China and what tarrifs do we have on their soon-to-be-landfill tat?

Answer: NONE! As of this year the piddling (around 2%) tarrifs that did apply to a handful of Chinese products have been removed

So, apart from destroying our manufacturing industries with zero tarrif junk, we are having to fork out 10% duty on our dairy. Great!

by Kunst | 23rd Mar 12, 8:54am 1332446065

Same old story: No economic/ financial long term strategy.

Too many politicians in this country talk with a megalomaniac tongue, but think with the brain of a mosquito.

by goNZ | 23rd Mar 12, 9:00am 1332446423

and dont forget the punchline Mr K -

Looking into current developments on many fronts – the world will never recover again, simply because among the powerful in societies ethic and moral requirements and standards don’t prevail

by Kleefer | 23rd Mar 12, 12:52pm 1332460370

It is rather Orwellian to call it "free trade" when the deal explicitly allows tariffs to be applied. However it needs to be pointed out that the real losers out of this development (besides Fonterra) are Chinese consumers, who are forced to pay inflated prices for milk.