20 Mar 2012

Penalty tariffs need another look - dairy companies

9:09 am on 20 March 2012

The Dairy Companies Association says penalty tariffs on New Zealand dairy exports to China need to be re-looked at.

China has used the tariffs 12 times since signing a free trade agreement with New Zealand in 2008.

Association executive director Simon Tucker says New Zealand signed up to the tariffs as part of the trade deal.

But he says a booming demand in China for dairy imports following its tainted milk scandal in 2008 means the arrangement should be reviewed.

Trade Minister Tim Groser says he may raise the issue with his counterpart in Beijing as early as this week.