NZ Ministry for Trade scoffs at suggested trade tensions

Guys

No evidence of Chinaretaliation for Kiwi exports: govt officials

Weekend

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NZ Herald

By:Andrea Fox and Jason Walls (summarized)

TheMinistry of Foreign Affairs and Trade is reassuring New Zealand exporters thattheir products continue to be cleared into China.

Theministry (MFAT) stated.

"Ina trade relationship of this scale, there will be cases where products faceissues at the border, for a range of reasons including questions of regulatorycompliance or revised border inspection processes," a spokesperson said.

"Theoverall picture is one of a significant trade relationships workingeffectively, in both directions."

MFAT wasmindful that all functions within China's border clearance agencies were beingrestructure under one single agency.

"Customsofficials who this time last year worked for different agencies are nowperforming new functions, using new systems and following newly-learnedpractices.

"Thismay affect timeliness in some instances, but has a corresponding benefit ofseeing more consistency in the application of regulations across all ports ofentry."

MFAT said no New Zealand product had appeared onChina Customs latest December list of food import non-compliances that have ledto product rejection at the Chinese border.

"Todate we do not have evidence that points to a pattern of targeted interventionat the Chinese border impacting on access for New Zealand goods," the MFATspokesperson said.

"Wenot have received indication of anything out the ordinary in China's borderclearance procedures for New Zealand products."

NewZealand exports to China last year were valued at $15.3 billion - of whichdairy products were the biggest earner at more than $4 billion.

China isthe biggest export market for many New Zealand primary products, includingdairy, fish, kiwifruit and logs.

The valueof trade between the two countries last year was NZ$27 billion.

Speakingto The Herald this afternoon, Tourism Minister Kelvin Davis said

"Itis important to keep a level head about what is going on," he said, addingthat there was "no cause for concern".

He talkedup New Zealand's tourism relationship with China, saying that most Chinesevisitors give New Zealand high marks when it comes to their overallsatisfaction.

In fact,he said the numbers of Chinese tourists who will come to New Zealand isexpected to increase.

He saidhe had not had any briefings, as "there is actually not an issue".

"Peopleare being hyper-sensitive over the issues, but there are no trends occurring.I'm totally confident that the relationship with China is strong."

 China postponed the 2019 China-New Zealand Year of Tourism event at Te Papamuseum, which was meant to kick off next week.

"We'reworking with them to reschedule that launch. It's just a launch – there havebeen activities that have been happening and will continue to happen throughoutthe year regardless."

China isNew Zealand's biggest export seafood market, last year returning $500m.

Dairyexporter Fonterra, New Zealand's largest company, said it had no cause forconcern in China.

Aspokesman said New Zealand dairy products had been in China for decades andChina was a key market.

"Weenjoy a long-standing and constructive relationship with China and our manycustomers there. While of course we always keep a close watching brief oninternational trade developments, we have no cause for concern in China andaren't experiencing any conditions in our export relationship which are out ofthe ordinary."

Thecountry's second biggest dairy exporter Open Country Dairy said it hadexperienced no issues. "It's business as usual," said chairman LaurieMargrain.

The DairyIndustry Companies Association did not respond to an approach for comment.

ExportNZexecutive director Catherine Beard said she had not received any complaintsfrom any exporters about being held up at Chinese ports.

Aspokesman for kiwifruit marketer Zespri, which last year exported more than$500m of fruit to China, its biggest market, said it was "business asusual".

MeatIndustry Association chief executive Tim Ritchie said he was not aware of anyissues with exports to China, which is New Zealand's biggest sheepmeat market,taking 45 per cent of all the country's sheepmeat exports.

China isNew Zealand's second biggest market for beef exports after the US, last yearreturning $2.1 billion.

Aspokesman for the forestry industry, which last year earned 48 per of itsexport income from China with $3b, said it was not aware of any issues.

NZTEchief executive Peter Chrisp said he had talked to many companies in the pastweek or two about trade with China and there was not enough to draw conclusionabout a pattern at this point in time."