Summary
On 2 July, at a regular press conference, Ministry of Commerce spokesperson He Yadong provided an update on the latest progress in China-US agricultural trade co-operation. He stated that agricultural trade is a vital part of bilateral economic and trade ties. Following recent consultations, the two sides set guidance targets for expanding two-way agricultural trade and agreed in principle to include relevant agricultural products in a reciprocal tariff reduction framework.
Enterprises will operate on market-based principles, conducting trade independently based on actual demand and market conditions. China is willing to work with the US to create favourable conditions for two-way agricultural trade. The specific tariff reduction list and implementation plan have yet to be announced; further developments remain to be seen.
Commentary
The upgrade of China-US agricultural trade co-operation has dual implications for New Zealand small and medium-sized enterprise owners. On one hand, reciprocal tariff reduction between China and the US could enlarge the market share of US agricultural products in China, directly squeezing the competitive space for New Zealand's similar products, such as dairy and meat. It is advisable for New Zealand exporters to closely monitor the US tariff reduction list, analyse changes in price advantage, and strengthen differentiated marketing, for instance, emphasising grass-fed and organic certification.
On the other hand, the easing of China-US trade relations helps stabilise the global agricultural trade environment and reduce trade barrier risks. New Zealand companies could leverage this opportunity to push for the upgrade of the NZ-China Free Trade Agreement negotiations, seeking more preferential tariffs. Potential opportunities lie in the continuously growing demand among Chinese consumers for high-quality, safe agricultural products.
New Zealand products can reinforce brand stories and utilise Chinese e-commerce and the China International Import Expo channels to expand visibility. In conclusion, New Zealand exporters should track subsequent China-US consultations, adjust export strategies to China in a timely manner, and explore co-operation with Chinese firms to develop value-added products.
Keywords: Ministry of Commerce, He Yadong, China-US agricultural trade, economic and trade consultations, guidance targets, reciprocal tariff reduction, market-based principle, two-way trade
Source: Global Times
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