All New Zealand dairy products can now enter China duty-free, with the end of safeguard duties on milk powder starting, stated Trade and Agriculture Minister Todd McClay.
McClay explained that in 2008, China agreed to remove all tariffs on dairy products in the New Zealand-China Free Trade Agreement (FTA). With the safeguard duties on milk powder now removed as of 1 January 2024, this marks the final liberalisation of dairy access under the FTA.
“This is good news for our dairy sector. Removing these remaining tariffs is expected to deliver additional annual tariff savings of approximately $350 million,” said McClay.
“China is an important market for New Zealand exporters, accounting for 28 percent of our goods exports in 2022. New Zealand is China’s largest dairy supplier, providing high-quality products people know and trust.”
The FTA continues to deliver benefits to the New Zealand economy and to underpin the New Zealand-China trade relationship.
New Zealand’s network of FTAs currently in force covers two-thirds of New Zealand’s exports. These provide trade depth and resilience and multiple market options for exporters.
New Zealand’s annual dairy exports to China have averaged 1.4 million tonnes (NZ$8 billion) yearly over the past three years, around half of which was milk powder.
