New Zealand dairy products can now enter China duty-free

All New Zealand dairy products are now able to enter China duty free, with the end of safeguard duties on milk powder starting, Trade and Agriculture Minister Todd McClay says.

“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. The removal of these remaining tariffs is expected to deliver additional annual tariff savings of approximately $350 million.” 

“China is an important market for New Zealand exporters, accounting for 28 percent of our goods exports in 2022. New Zealand is also China’s largest supplier of dairy, providing high-quality products that people know and trust.

“The FTA continues to deliver benefit 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 as well as multiple market options for exporters. 

New Zealand’s annual dairy exports to China have averaged 1.4 million tonnes (NZ$8 billion) each year over the past three years, around half of which was milk powder.  

Find more information on the New Zealand-China FTA and how it benefits New Zealand businesses at mfat.govt.nz/chinafta.