As New Zealand is becoming more reliant on exports to China, a trade war with the country could damage the country's economy. Since the signing of the free trade agreement in 2008, exports from New Zealand to China had trebled to $11.5 billion by March this year, second only to Australia which takes $13b worth of goods.
Zespri has big ambitions for China. It is about to surpass Japan as the largest Asian market, and the marketing co-operative sees China as the chief driver to lifting total exports from about $1b now to $2b by 2020.
Just as it has in Italy, France, Japan and Korea, Zespri is looking at the possibility of growing kiwifruit in China, to supply the market outside of New Zealand's producing season.
Trial sites for growing are being established in Shaanxi Province now, and a kiwifruit "centre of excellence" - a joint venture between Zespri and the Shaanxi provincial government - will be set up next year.
If a trade war did occur over a complaint to the World Trade Organisation about steel dumping, it would be the first time he could recall one, said former trade negotiator Charles Finny.
The situation with China did not add up because no-one had yet made an actual complaint.
Government trade envoy and farmer Mike Petersen said he had recently been in China with the Prime Minister and had not heard anything.
Besides going to the World Trade Organisation, New Zealand also had the option of making a complaint through the FTA on a government-to-government basis.
Source: stuff.co.nz
