Trade remedies
Under the NZ-China FTA, New Zealand and China retain their existing rights and obligations under the WTO Agreement on Subsidies and Countervailing Measure and the WTO Safeguards Agreement. Both countries have agreed to use any measures in a transparent manner.
Anti-dumping
Anti-dumping measures allow an importing country to impose special import duties when a product is sold on the importing market below what the same product is sold for in its home market.
Both countries retain their existing WTO rights and obligations on anti-dumping.
No export subsidies
New Zealand and China have agreed that neither country will introduce or maintain any form of export subsidy on products being exported to the other country.
Global safeguard measures
Global Safeguard measures are temporary measures under the WTO designed to slow imports of a particular product from all countries to enable a domestic industry to adjust to increased competition from foreign suppliers.
Under the FTA, either country may exclude the other from global safeguard action if its imports are not causing serious injury.
Bilateral safeguard measures
The NZ-China FTA also contains additional bilateral safeguard measures. Under these measures, either country will be able to go back to higher tariffs for a limited period (of two years, which may be extended by one year) where there is 'serious injury' or the threat of serious injury to domestic industries caused by increased imports because of tariff cuts under the NZ-China FTA. At the end of the period during which the safeguard measure applies, the tariff shall be at the rate that would have applied had the safeguard measure never been applied.
Bilateral safeguard measures will only apply only after an investigation in accordance with the provisions of the FTA. The country applying a safeguard measure must provide compensation to the other country while the safeguard measure is being applied.
A provisional safeguard measure (for up to 200 days) may also apply in limited circumstances before an investigation has been completed. If it is found after the investigation that the measure should not have been applied, the exporting country will get a refund of the higher tariff rates it paid under any provisional measure.
In New Zealand, the Ministry of Economic Development [external link] will be responsible for conducting any bilateral safeguards investigations once the FTA has come into force.
- Page last updated: 16 July 2010
