Dairy central to China and New Zealand trade talks

China and New Zealand have agreed to start formal negotiations with a view to upgrading their current free trade agreement.

An upgraded free trade agreement (FTA) could bring increased revenues for the world’s largest dairy exporter, New Zealand’s Fonterra Co-operative Group Ltd, its chairman said.

“The upgrade of the FTA provides an opportunity to strengthen the already strong dairy relationship between New Zealand and China,” John Wilson, Fonterra chairman, told Reuters news agency.