KEY POINTS:
Details on tariff cut programme in trade deal with China.
The deal eliminates tariffs on 96 percent of New Zealand's current exports to China by 2019.
For other than specified "sensitive" goods - kiwifruit, some meat, sheepskins and dairy products - the following programme will apply:
* When
the deal comes into force - probably October 1 - 35 percent of imports from New Zealand which currently face tariffs of up to 5 percent will be duty free;
* Duties in the 6 to 20 percent range will be phased out over five years until 2012; and
* Tariffs greater than 20 percent will be reduced to 20 percent on day one and then phased out by 2013.
Dairy
* Some dairy products - infant milk formula, casein, yoghurt and whey - will be phased out over 5 years;
* China's tariffs on butter, liquid milk and cheese will be phased out over the 10 years to 2017;
* Skim and whole milk powder will be removed over 12 years; and
* There are mechanisms to delay the tariff reductions if exports exceed certain quantities.
Meat
* Tariffs on beef and sheep meat, and edible offal will be removed over 9 years.
Fruit
* Apple tariffs will be removed by 2012 and kiwifruit over 9 years.
Wool
* A duty free quota of 25,000 tonnes of wool and 450 tonnes of wool tops will be set increasing by 5 percent a year for 8 years. The initial quota is 75 percent of current exports or $122 million a year in tariffs.
Wood and paper products
* China will be bound on the zero tariff on logs and sawn timber and a limited number of pine products will also be given preferential status.
* Some processed wood and paper products accounting for 4 percent of New Zealand's exports to China will not be covered by the trade deal. This is because under WTO rules is China gives preferential status on the products, they must be applied to all WTO members.
What China Gets from New Zealand.
* All tariffs will be removed by 2016;
* Currently 37 percent of China's exports to New Zealand are tariff free;
* An additional 2 percent of exports with a tariff of five percent or less will be duty free from October 1;
* Tariffs on most textile, apparel, footwear and carpet products will be phased to zero over seven years or nine years. Tariffs on heavily exported goods in clothing and footwear will be phased out by 2016, lesser traded goods by 2014; and
* Tariffs on all other goods (including steel, whiteware, plastics and furniture) will be mostly phased out by 2012 with the remainder by 2013.
* Ian Llewellyn is in Beijing with the assistance of the Asia New Zealand Foundation.
- NZPA
