China-New Zealand Trade Deal Opens Opportunities

Roughly a week after China and New Zealand agreed to "upgrade" their trade agreement, Air New Zealand has been given the green light to start operating cargo flights to Guangzhou.

This week there will be three return flights.  By next week, two multistop services will be operated. The first flight took off from Christchurch on Wednesday.

The approved cargo services are expected to help meet demand for products as sellers prepare for the Lunar New Year.

Air New Zealand cargo general manager Anna Palairet said the new services would make cooperation between importers and exporters easier. She said "it hasn't been easy" for both sides since the pandemic started but "it's great to be able to offer more connectivity."

All of New Zealand's dairy exports to China will be tariff-free starting in 2024. Paper and wood products will also be increased.

Auckland-based oral care company Grin Natural Inc.'s Leo Liu said the agreement will help boost "logistics efficiency."

Furthermore, Liu said the deal will help reduce operational costs and will offer increased value for businesses that will be affected by better terms and improved trade dynamics.

Based on the new rules exporters in New Zealand will see faster clearance of fresh food products in borders.

China and New Zealand's deal is based on the Regional Comprehensive Economic Partnership agreement that includes 13 other countries. However, the two countries' cooperation highlights their commitment to environment protection.

China is New Zealand's largest trading partner. The annual trade of both countries is estimated at $21.58 billion.

Economic experts said the recent developments in China's world trade ties symbolizes the country's push for multilateralism following a trade war with the U.S.

Aside from signing an investment pact with the European Union last year, and joining the RCEP, China's government said it was interested in becoming a part of the Comprehensive and Progressive Trans-Pacific Partnership deal.

The U.S. withdrew from that deal under the Trump administration.