Woolerton R Doug: New Zealand-China Free Trade Agreement Bill — Second Reading 
Woolerton R Doug: New Zealand-China Free Trade Agreement Bill — Second Reading 
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R DOUG WOOLERTON (NZ First) 
: 
 New Zealand First opposes the New Zealand - China free-trade agreement and we do so with some sadness. We talked about this in the first reading of the New Zealand-China Free Trade Agreement Bill. New Zealand First opposes free-trade deals with low-wage economies because in a deal with a low-wage economy the deal is always in the best interest of the economy with the low wages—never the other way around. That has been proven in several other free-trade deals we have had—one deal was with Singapore—and it will be proven in this case. As I said we talked about these concerns in the first reading of this bill and we are now seeing the beginnings of newspaper articles where other people in the community find that the deficiencies in the free-trade agreement with China are becoming apparent—they are causing them concerns. I have an  
Independent 
 article of 10 July of this year which is only a wee while ago where Tourism Holdings Fletcher Building and even Fonterra pointed out some of the dangers of the free-trade agreement with China to employment in this country and to the well-being of our businesses. 
In the case of New Zealand everybody here knows that we removed tariffs years ago and we have gone on OK. There was a lot of pain in that period but we have got over that and as Mr Groser was saying we have spent 30 years looking for other markets. But I will point out that under the free-trade agreement with China—and Dr Mapp mentioned that we are arguing over a few years—it could be as late as 2019 before tariffs are reduced to nil on milk powders and produce like that. I remind people who say that that is of no consequence that produce like that is 20-odd percent of our exports right there—from the dairy industry—yet it will be 2019 before tariffs finally come off those products. Even then there is a claw-back clause that allows China if the deal causes too much trouble to China or if it impacts on its industry in any way to push that date out even further. So I do not think the agreement is anything to get too excited about. 
This article of 10 July is headed up “Hidden hooks emerge in China FTA”. A professor at Victoria University Roger Bowden says that it could be a problem for local tourism if the Chinese choose to take the advantage they are given under this free-trade deal to its greatest extent. He says people can virtually organise their tours to New Zealand from China operating through Chinese companies with Chinese guides and New Zealand merely provides the platform for them to drive through. We have talked about those things in the first reading of this bill and we are talking about them now. 
I have also talked about other issues in debates that we have had in this House when I have said that China clearly does not intend to pay world prices for our products. Admittedly China is opening up its economy but that is because it has to. It will not be free-trade agreements that put us into China; it will be because we produce the best goods at the best prices for world markets. I am surprised that a so-called free-market party like the National Party says we need these sorts of agreements in order to get into China. We do not. We are getting into China because of the value of the produce that we make in the same way as we are getting into all of the other markets around the world. 
I have said and I will say this again—and it will happen—that ultimately China will look to this country just as England did as a producer of those things it does not want to produce itself. So the Chinese will lease or buy farms in this country—they are already buying dairy factories and other plants—because it is cheaper for them to vertically integrate what they need by buying land here in Australia and in South America. They buy a plant and run the product through it thus getting the product at a better price in their own country. We do not blame the Chinese for doing that; we understand why they would want to do that. But we cannot understand why politicians in this country do not support New Zealanders. We are hearing here all about why this agreement will be wonderful for China; I am not hearing about absolute cases that show why this agreement will be wonderful for New Zealanders. Will this agreement put up New Zealand wages? Will it help with regard to salaries in New Zealand? No it will not. 
Mark Blumsky 
: One hundred grand. 
R DOUG WOOLERTON 
: No it is not and I will challenge the National Party—or the Labour Party for that matter—to show me where that will happen. 
We will not put product into China if it is not at the best price we will not put product into China if it is not of the best quality and we will not put product into China if China does not want it. The only reason— 
John Hayes 
: So what? That’s nothing to do with the agreement. 
R DOUG WOOLERTON 
: You are right. It has nothing to do with the agreement because the agreement means nothing. The Chinese are taking our product because they need it. They are taking our product because they are short of water and they are taking our product because they need it. They are not taking it because of the free-trade agreement. In fact the free-trade agreement makes sure that they will not lower their tariffs on many of the products that we produce for many years into the future. 
We also know as does every other parliamentarian here that China is making a big move into the South Pacific. The Chinese are making their presence known there and are spreading their largesse throughout the region providing courthouses and whatever facilities those countries want—and I say “Good on them.” But China is not doing that for the Pacific Islanders’ benefit either; China is doing that in order to spread its influence. We do not blame China for doing that but let us not be totally naive when it comes to this free-trade agreement. Let us not be blinded by the numbers we see in China. Let us not be blinded by the numbers we see in India where we are also negotiating a free-trade agreement. The money for our products—which are at the top end by anybody’s language—is still in America and Europe and will be there for many years into the future. 
Sadly because New Zealanders are not going to be advantaged by this bill to the degree they think they are New Zealand First will have to vote against it.