WHO DO THE REDUCTION OF TRADE TARRIFS BENEFIT?
By | Jun 17, 2010
The Government informs us that by 2019 tariffs will be eliminated on 96% of New Zealand’s exports to China. This is seen as a good thing for New Zealand business.
Yet we hear that the Overseas Investment Office is deliberating an application by New Zealand citizen May Wang to purchase 16 dairy farms, backed by Hong Kong listed company Natural Dairy (NZ ) Holdings.
In light of the free trade agreement with China it seems unlikely that applications for NZ citizens to purchase businesses with Chinese investment backing will diminish.
We need to contemplate who the 96% elimination of tarrifs will actually serve when 2019 rolls around, and in whose interests they have been established. We also need to ask what this means for tangata whenua, especially in light of the repeal of the Seabed and Foreshore legislation.
While the OIO seeks to nurture New Zealand’s image abroad, serious consideration needs to be given to who’s interests will best be served by such investment.
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Stephen Jacobi
June 28th, 2010 at 4:32 pm
The FTA with China has no relevance to the proposed purchase of dairy farms by Chinese interests becasue the FTA made no changes to NZ’s investment screening procedures. (The OIO’s role is not to promote NZ’s image overseas but to make decisions on foreign direct investment applications which fall within its screening mandate). Likewise the FTA has no relevance to the proposed repeal of Seabed and Foreshore legislation beacuse the FTA enshrines the right of NZ Governments to make legislation in favour of tangata whenua. The reduction of tariffs on NZ exports to China will benefit workers and farmers by reducing the costs of NZ products in the Chinese market. Reuctions in the few remaining tariffs on Chinese goods entering the NZ market will benefit NZ ocnsumers. This is all basic stuff – the Church needs to make more of an effort to understand these issues before making such scare-mongering statements as in this post.