There is an interesting article in today's Dominion Post by Dan Eaton, one of the few journalists covering yesterday's evidence to the select committee on the China FTA. Fonterra's Phil Turner told the commitee that a $300 million contract was the direct result of the FTA having been signed.
Turner said the "commercially very valuable" deal came within weeks of the signing of the agreement in early April, locking in a schedule for eliminating tariffs on nearly all exports to China by 2019.
Tariffs on nutritional milk powders for infant formula, pregnant mothers and young children are to be eliminated by 2012.
"We've been able to conclude a deal recently on the basis of the FTA being signed, which results in a considerable volume of business and processing being done in New Zealand that would otherwise have gone offshore, in this case to Singapore," Turner said.
Fonterra's written submission said the deal would generate more than $300m in revenue over four years.
"These value-added dairy products will be manufactured in New Zealand factories, using New Zealand milk, capital, labour and technology," it said.
