China continues to be the recipient of the largest share of New Zealand exports.
China received 32% of New Zealand’s total trade in June 2021. Stats NZ reported that China received 44% of New Zealand’s milk, 90% of logs, and 41% of meat.
The value of all New Zealand merchandise exports increased by 17% in June 2021 compared to June 2020 to NZ$6 billion (US$4.18 billion). He said May 2021 was the previous record for exports.
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Timber and log exports have reached an all-time high. They increased by 23% from June 2020 to NZD 561 million (US$391 million) in June 2021. Logs were the main driver of this increase. Statistics show that the value of log exports has reached new heights due to an increase in unit values, which have risen by 26%.
Alasdair Allen, head of international trade, said in a statement that the average value of unprocessed log exports had risen steadily since July 2020 to $199 (US$139 per cubic meter) in June 2021.
In June 2021, beef exports reached a new record of NZD 411 million (US$286 million). The increase in volume was 8.5 percent and the increase was mainly quantitative. Allen said March 2020 was the previous peak for beef export value.
The increase in total exports was also due to butter, milk powder, and cheese, which increased by 31 percent. It also said kiwis have increased by 43 percent between June 2020 and now.
Stats NZ also reported record imports of parts and accessories from New Zealand.
Statistics showed that total exports reached the highest value ever in the June 2021 quarter, at NZD17.2 billion (US$12 billion), thanks to two months of record exports, May and June 2021.
New Zealand and China sign enhanced free trade agreement
Under an improved agreement, 99% of New Zealand’s timber and paper trade to China is now duty-free.
The updated free trade agreement (FTA) between New Zealand (NZ) and China came into effect on Thursday, according to New Zealand’s trade growth minister.
Damien O’Connor said in a statement that “our trade agenda is very dynamic” and that the China upgrade will come within weeks of our FTA with the UK. This will add up to $1 billion to our GDP.
The China-New Zealand FTA upgrade protocol
In February, the two countries agreed to implement the upgraded agreement from 7 April.
The upgraded FTA will allow New Zealand to eliminate all tariffs on 12 timber and paper products over the next ten years. This will allow New Zealand to trade 99% of its $3 billion worth of trade in this sector with China.
The recent good news for New Zealand’s export sector is the China-New Zealand FTA Upgrade Protocol, which came into effect in April.
The upgraded FTA makes it easier to export to China and reduces compliance costs for New Zealand exporters. It addresses a range of non-tariff issues, such as limiting the clearance of perishable goods to six hours and ensuring that such goods are properly stored pending their release.
Huang Yuefeng (the Chinese embassy’s economic and trade counselor) told Xinhua that this will give New Zealand exporters, particularly those of fresh seafood, greater confidence that their cargo will be processed with minimal delay. It will also reduce the risk of spoilage, saving time and money.
Beijing has reduced or eliminated tariffs on 75 timber and paper products since 2008 when the two countries signed their first FTA.
O’Connor said China remains an important market for New Zealand, whose exports of goods and services will reach $21.5 billion by 2021.
China has lifted most tariffs on New Zealand dairy products since the beginning of the year.
New Zealand has set its export target at $50.8 million for the current financial year. This will end in June.
“The government is also working to conclude a free trade agreement (with the European Union) as soon as possible. Mr. O’Connor said the Regional Comprehensive Economic Partnership, the largest FTA in the world, came into effect with PACER Plus in the South Pacific.
This landmark agreement, the Pacific Agreement on Closer Economic Relations (or PACER Plus), links the Pacific region through development and trade.
China and New Zealand are both close trading partners
China and New Zealand are both close trading partners. China is New Zealand’s largest trading partner. Bilateral trade (exports/imports of goods/services) exceeds NZ$33 billion.
– New Zealand exports goods to China.
– New Zealand imports from China
China is the world’s second-largest economy and most populous nation. New Zealand investors and exporters have significant opportunities due to its large and growing middle class.
New Zealand’s exports to China
New Zealand’s exports to China are worth $20.1 billion. This includes $16.7 billion in goods and $3.4 trillion in services.
New Zealand’s main exports of goods are
- Dairy products (milk powders, butter, and cheese)
- Meat products
- Wood products
- Cereal preparations, flour, and starch
- Exports of services
New Zealand’s main services exports are
- Transport services
- Financial services
New Zealand imports from China
New Zealand’s imports from China are worth $13.3 billion. This includes $12.5 billion of goods and $800 million in services.
New Zealand’s top imports from China are
Statistics show that China remains New Zealand’s largest export destination.
Fonterra, a major New Zealand dairy producer in China
Teh-han, CEO of Greater China at Fonterra, a leading New Zealand dairy producer, said there is new demand in China for dairy products that promote wellness and health.
Fonterra’s CEO for Greater China, Teh-han Chow, told Xinhua that China was a key market. “About a third of Fonterra’s milk is sold in China as ingredients, food services, or consumer products,” Teh Han Chow, a leading dairy producer, said on Saturday.
Chow said China’s economy has been strong since COVID-19. He also said Fonterra’s relationship with China dates back to 1973. Fonterra has benefited greatly from the healthy bilateral relationship as well as agreements, and policies, including a regional trade agreement and a free trade agreement (FTA).
He said, “There is a new demand for health and wellness dairy products, which has also created opportunities for our proprietary products, including probiotic strains.”
China is Zespri’s largest market
Despite the negative impact of COVID-19 the world’s largest kiwi trader, Zespri’s executive office for Greater China, Michael Jiang, said China has been Zespri’s largest market for 20 years.
He added: “We have also expanded our presence in Chengdu to better connect with growers in one of China’s largest kiwifruit regions, as we seek to understand the opportunities for co-operation between New Zealand and Chinese industries, whether through research or the development of new varieties.”
New Zealand lobster exporters optimistic about China’s future
New Zealand lobster exporters are optimistic about China’s future post-CVID, thanks to an enhanced FTA that came into effect last month.
Andrew Harvey, managing director of the Fiordland Lobster Company in New Zealand, said the Chinese National Day Golden Week in October is always one of the most important events for lobster exports.
Mr. Harvey, whose company began exporting lobster to China in the 1990s, said “we are optimistic that it will be the same this year”, according to Xinhua.
Statistics show that the New Zealand lobster industry’s export value is about NZ$300 million (US$205 million) a year.