New Zealand dairy imports hit red line tariffs to 10%

Yesterday there were reports that New Zealand milk powder tariffs will be restored from 5.5% to 10%. This is because New Zealand imported raw milk and milk powder have triggered special safeguard standards. Yesterday, some experts analyzed that “young milk powder” may also raise prices during the year, but there should be no major relationship with tariffs because the determinants of prices are always determined by market profits.

According to the free trade agreement signed by China and Singapore in 2008, dairy products imported from New Zealand will decline year by year within 10 years. In January of this year, China imported 61,000 tons of dairy products from New Zealand and New Zealand milk powder was as high as 60,000 tons, accounting for 55.9% of the total imports of dairy products during the same period. Wang Dingmao, a senior expert in the field of nano leaves, told reporters that in the past 10 years, dairy products imported from New Zealand have remained high.

Wang Dingmian also told reporters that during the year, the foreign milk powder did not rule out any further price increase, but this “tax increase” would not be the main reason for price increases. The reason why the foreign milk powder is mainly because domestic consumers advocating the "expensive is good" mentality. And in the past two to three years is also the peak period of birth of infants and young children in China, is a great opportunity for them to profit.

There are relevant provisions that when the amount of agricultural products imported exceeds the current year, special safeguard measures can be implemented on the products through additional tariffs. This time New Zealand's import of powdered milk has been taxed for this reason. It is understood that the trigger time for this safeguard measure in 2009 was August, and that it had reached March before last year.