China, New Zealand tighten trade ties as Beijing cuts tariffs on wood, paper ahead of pact renewal
- Move comes as the prices of pulp and corrugated paper have been volatile in recent weeks amid geopolitical tensions and supply-chain disruptions
- An update to the 2008 trade pact between China and New Zealand enters effect this week
As its free-trade deal with New Zealand is set to enter force on Thursday, Beijing has announced a late change – the immediate slashing of tariffs on a some types of wood and paper products from the Pacific Island nation.
China will reduce or remove duties on 12 wood and paper product lines as part of the new agreement with Wellington, according to a statement on Sunday by the tariff commission of the State Council, the country’s cabinet.
Most notably, the commission said it will directly cut import tariffs – to zero from 7.5 per cent – on three specific items in a faster manner than gradually doing so over the next decade, which had been previously announced last year. Those products comprise medium-density fibreboard; a type of self-adhesive paper; and paper or paperboard labels.
Tariffs on the other nine product lines – which will drop by 0.5 or 0.7 percentage points – will gradually decrease to zero by 2031, according to the revised agreement.