Recall those who voted against the China FTA

David Farrar

This is a graph of our annual exports to China. The growth in exports since we signed a free trade agreement with them has been almost beyond belief.

In the last six years we have exported $33.7 billion of goods to China. In the six years before that, it was $9.9 billion.

Remember those facts as you also recall that NZ First and the Greens railed against the China FTA, and voted against it.

I hope Labour are proud of the China FTA. They should be. May the protectionists in their party and the affiliated unions not gain dominance.

Political commentator David Farrar posts at Kiwiblog.

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16 Comments & Questions

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"May the protectionists in their party and the affiliated unions not gain dominance."

Labour's "democratic & meritocracy" methodology of selecting a "new" leader may suggest otherwise.

Their man-ban won't help either. And their failed and stale political ideologies will be like concrete gumboots in a swimming contest.

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The prime minister said the FTA would be made public at the signing, and would then go to a select committee for scrutiny.

"This by the way is something of relatively recent years. When I began in Parliament, no treaty came to Parliament for examination at all. So there is an examination process and submissions are called for," she said.

The Government then had to pass legislation which it is assured of doing with National's support.
http://www.nbr.co.nz/article/clark-china-fta-huge-nz

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. "It's well known that Chinese exports come into New Zealand with very few barriers at all. The same is not true the other way around and that's why it matters to us to negotiate an agreement like this."

The agreement also gave New Zealand "first mover advantage" by being the first country to negotiate such a free trade agreement with China.

"It is acknowledging on our part that China will be, in my lifetime, the world's biggest economy, that China is emerging as a super power and the more that super power can be engaged with and drawn into an international rules-based environment, the better for all of us," Ms Clark said.
http://www.nbr.co.nz/article/clark-china-fta-huge-nz

In November 2005, Chinese President Hu Jintao and former Chilean President Ricardo Lagos witnessed the signing of the China-Chile Free Trade Agreement. The Agreement entered into force in October 2006. Under the Agreement, China and Chile will extend zero duty treatment phase by phase to cover 97 percent of products in ten-year time. The two countries will also further strengthen exchange and cooperation in such areas as economy, SMEs, culture, education, science and technology, and environmental protection. On April 13, 2008, Chinese President Hu Jintao and Chilean President Michelle Bachelet witnessed the signing of The Supplementary Agreement on Trade in Services of the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Chile, in Sanya, Hainan Province. At present, the two parties are pushing ahead negotiations on investment.
http://fta.mofcom.gov.cn/topic/enchile.shtml

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David you forget the Chinese want dairy produce, and Fonterra is currently the biggest exporter of this. They would have had to buy it from Fonterra regardless of the FTA.

Its way to early to determine how beneficial this FTA will be. Most people, like yourself, focus on the short term outcomes; failing to recognise the long term implications.

Any businessman will tell you having 25% of your business with one customer exposes you big time. This is what business with China is.

Meanwhile, Chinas slave labour continues to gut our country of local manufacturing that has taken 100 years plus to develop the skills needed. Have you any idea how difficult it is to restart an industry where they are no local skills? Not everyone can be (or would want to be) journalists like you.

A better understanding of business may assist you with future articles.

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If the TPP trading bloc is enacted without including China then I expect we will be paying more for our imports as we will have to shift our trading to other countries in the bloc.
China will be excluded because they wont comply with TPP labour laws, TPP environment laws and TPP State owned enterprise laws.
The TPP is not a free trade agreement its a trading bloc where other countries who don't agree to TPP rules get excluded.
Am I right? You just have to read what China is saying about TPP to understand what is really going on here.

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How have we done relative to other countries. If the FTA has worked we will have outperformed.

Also as per above how much is just commodity prices and volumes verses new markets for value added products.

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One market dependence. One product (commodity) dependence (and now we are making businesses out of teaching the Chinese how to develop, run and manage their own dairy farms).

Anyone see risk here? Anyone remember wool re-orientating to China?

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The Chinese do not need NZ to teach them how to run farms the farming systems are very different. In fact Fonterra have taken 5+ years to work it out.

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So why are so many New Zealanders now making money out of advising the Chinese on how to "do dairy"?

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My guess is because they are cheaper than hiring people out of Europe, Canada, USA etc. Do they need NZ - no, there are other options.

I suspect the amount being made by the NZ consultants, will be miniscule in terms of the value being created by the Chinese and other smart investors investing into China.

The NZers will be gone after they have done their 12 months, leaving the Chinese to go and grow their own operations.

If you want other exmaples go and look at forestry (Chile) and kiwi fruit etc. NZ is happy to sell cheap labor and give away IP all for the quick buck. The people on the otherside are more than willing to accept this.

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Which reinforces my point: we create a one market, one product dependence and then we teach the market how to do it themselves!

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Fair comment. But lets not fool ourselves we do not have a monopoly on knowing dairy. In fact because of the different systems we are not necessarily the best. But perhaps the chinese do not understand that.......yet.

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Mayol said that once the meats agreement is full implemented “we will be moving forward with the export of live cattle, both for dairy and beef, and horses”. The minister added that Chile is also very much interested in promoting dairy sales to China. Chile dairy exports total 300 million dollars.
The Chilean official also underlined the significant collaboration with China in technologic innovation, particularly in the forestry area, “where there is much to advance and investments to consider”.
The last day of his stay Mayol visited a joint Chile-China experimental farm in the province of Shanxi (southeast of Beijing) which has been running for over fifteen years “and seems to be improving every time I visit the country”. This was Mayol’s sixth official visit to China.
http://en.mercopress.com/2012/05/14/china-opens-its-market-to-chilean-be... .

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check out this company: http://www.aozora.co.nz/home/

9 March 2013 Media Statement
New Zealand and Chile sign agricultural agreement: Primary Industries Minister Nathan Guy and his Chilean counterpart Luis Mayol have signed a revised Agriculture Cooperation Forward Agenda between New Zealand and Chile.

“New Zealand and Chile have a strong relationship, underscored by their role in the formation of the Trans-Pacific Partnership,” says Mr Guy.
“New Zealand and Chile are like cousins and since 2007 New Zealand has invested $630 million in Chile.
“The significant agriculture investment in Chile provides commercial opportunities for New Zealand businesses, while enabling an exchange of New Zealand expertise in the sector.
“Chile has an additional 5 million hectares suitable for dairying and New Zealand products and expertise will play a big role in future development.”
The Agenda, first signed in 2011, focuses on four key priority areas: Science and innovation; education and training; climate change and resource management; and Trade and Investment.
Key commitments include:
· Exploring Partnerships between New Zealand and Chilean research institutes to promote innovation in our respective agricultural sectors;
· Collaborating to confront common challenges such as combating Psa in kiwifruit;
· Promoting trade, investment and exchanges in the pastoral sector; and
· Strengthen collaboration in the context of the Global Research Alliance.
“New Zealand has a good story to tell in the area of agricultural productivity and innovation. Chile has big growth plans and our strategic partnership looks really exciting,” says Mr Guy.
http://www.itsourfuture.org.nz/new-zealand-and-chile-sign-agricultural-a... .

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Nothing like a line chart without a data source to prove a point.

Where's the chart showing what those "exports" are? Land? Kiwi home ownership? "Shopping tours" for Chinese imports? Dairy products from farms Kiwis don't own anymore?

You can keep your FTA. No wonder Australia slammed the door on "Kiwi" migrants.

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short term thinking David. Our imports have grown faster than exports. We are still a net borrower from overseas and our skilled manufacturing base has been trashed by slave labour in China. Plus the point well made that over dependence on one market around one commodity is precisely what got us into this mess in the 1970s...must we fail again to learn the lessons of history?

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