Wednesday, July 6, 2022

NZ signs Economic Cooperation Agreement with Taiwan

New Zealand has become the first OECD country to sign a trade agreement with Taiwan, the small island nation off the coast of mainland China.

The Dairy Companies Association of New Zealand (DCANZ) today welcomed the signing of the Economic Cooperation Agreement between New Zealand and Taiwan, following the successful conclusion of negotiations. 

The agreement, formally signed in Wellington today, will result in elimination of tariffs covering 98% of trade within 4 years.  Virtually all tariffs on dairy products will be eliminated immediately.  The exception for dairy – fluid milk – will be subject to a 12 year transition to full tariff elimination; an expanding tariff rate quota applying during this period.  

“This is a good deal.  Taiwanese consumers will benefit as New Zealand dairy exporters and Taiwanese companies work in complimentary ways to meet the growing demand of the Taiwanese population for the high quality nutrition that dairy provides”. 

Malcolm Bailey

DCANZ Chairman

DCANZ Chairman, Malcolm Bailey, said that the agreement was a great outcome from the negotiation and would have economic prosperity benefits for both economies.   “This is a good deal.  Taiwanese consumers will benefit as New Zealand dairy exporters and Taiwanese companies work in complimentary ways to meet the growing demand of the Taiwanese population for the high quality nutrition that dairy provides”.

New Zealand is a longstanding and trusted supplier of dairy products to Taiwan, exporting high quality, safe dairy products to for around 30 years. In 2012 NZ exported more than NZ$240 million worth of dairy products to Taiwan.  In that year Taiwan was NZ's 17th largest market for dairy products.  The dairy products exported from NZ to Taiwan are mainly milk powders, but Taiwan do also purchase some butter and cheese.

Taiwanese dairy consumption is continuing to expand in-line with rising incomes and imported products play a role in meeting consumer demand that cannot be met by domestic production alone.  The vast majority of Taiwanese milk production is consumed as fluid milks. 

DCANZ’s commends the commitment shown by both Governments to the establishment of a high-quality and comprehensive economic agreement.   “We congratulate Minister Groser and New Zealand trade officials.   This agreement also demonstrates significant leadership by the Taiwanese Government to increasing economic integration in the Asia Pacific region.”  

The agreement will provide a high quality platform for the continued development of the New Zealand – Taiwan bilateral relationship. In 2012, Taiwan was New Zealand’s fifteenth largest dairy export market, with trade valued at USD 242 million. New Zealand exporters currently face import tariffs on dairy of between five and fifteen percent.

“As a trading nation all New Zealanders benefit from trade liberalisation.  In an increasingly hungry world, trade also improves food security for all consumers. ”

The agreement with Taiwan will also complement New Zealand’s existing trade agreements with China and Hong Kong.  “New Zealand’s growing combination of trade and economic co-operation agreements is testament to the bipartisan approach successive New Zealand Governments have taken to trade liberalisation”. 

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