WHO DO THE REDUCTION OF TRADE TARRIFS BENEFIT?
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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