China signs free trade deal with New Zealand
China and New Zealand signed a sweeping free trade agreement on Monday, the rising economic giant's first such pact with a developed country.
By Agencies |
BEIJING: China and New Zealand signed a sweeping free trade agreement on Monday, the rising economic giant's first such pact with a developed country.
The deal, signed by Commerce Minister Chen Deming and his New Zealand counterpart Phil Goff at Beijing's Great Hall of the People, will give New Zealand improved access to one of the world's fastest-growing economies.
It was signed in front of Premier Wen Jiabao and Prime Minister Helen Clark, one of the first Western leaders to visit Beijing since anti-government rioting broke out last month in Tibet.
``The signing of this agreement is a very significant achievement for New Zealand. It opens up new opportunities for businesses looking to engage with, or grow their existing links with, China,'' Clark said in a statement.
The deal came after 15 rounds of negotiations over three years, she said.
Two-way trade between China and New Zealand currently is worth more than $6.1 billion (euro3.9 billion) a year, with Chinese exports making up about 75 per cent, according to Statistics New Zealand.
When the deal goes into effect Oct 1, New Zealand exports to China that now face tariffs of 5 per cent or less will be cut to zero.
There will be a staggered timeframe for cuts on New Zealand exports that face larger tariffs, with 31 per cent of New Zealand's exports to China tariff free by 2013.
Tariffs on dairy products, a primary New Zealand export, will be phased out over a longer time frame, taking until 2019 when almost all of the country's current exports to China will be tariff free.
``The FTA provides for elimination over time of tariffs on 96 percent of New Zealand's current exports to China,'' a New Zealand government statement said.
Beyond trade in goods, the agreement covers the services sector, from insurance and banking to education and labor supply.
The agreement also calls for up to 1,800 Chinese to enter New Zealand each year to work in areas such as traditional Chinese medicine, language teaching and food service.
New Zealand said it hopes the agreement will make it a long-term trade partner with China.
``The upfront commitments on goods, services and investment and the mechanisms which provide for further development of the agreement over time should help keep New Zealand at the fore front of the evolution of trade and investment relationships with China,'' the government statement said.
The pact between the country with the largest population in the world, with 1.3 billion people, and a country with just 4.1 million people still has to be formally ratified by New Zealand's Parliament.
The deal, signed by Commerce Minister Chen Deming and his New Zealand counterpart Phil Goff at Beijing's Great Hall of the People, will give New Zealand improved access to one of the world's fastest-growing economies.
It was signed in front of Premier Wen Jiabao and Prime Minister Helen Clark, one of the first Western leaders to visit Beijing since anti-government rioting broke out last month in Tibet.
``The signing of this agreement is a very significant achievement for New Zealand. It opens up new opportunities for businesses looking to engage with, or grow their existing links with, China,'' Clark said in a statement.
The deal came after 15 rounds of negotiations over three years, she said.
Two-way trade between China and New Zealand currently is worth more than $6.1 billion (euro3.9 billion) a year, with Chinese exports making up about 75 per cent, according to Statistics New Zealand.
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When the deal goes into effect Oct 1, New Zealand exports to China that now face tariffs of 5 per cent or less will be cut to zero.
There will be a staggered timeframe for cuts on New Zealand exports that face larger tariffs, with 31 per cent of New Zealand's exports to China tariff free by 2013.
Tariffs on dairy products, a primary New Zealand export, will be phased out over a longer time frame, taking until 2019 when almost all of the country's current exports to China will be tariff free.
``The FTA provides for elimination over time of tariffs on 96 percent of New Zealand's current exports to China,'' a New Zealand government statement said.
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Beyond trade in goods, the agreement covers the services sector, from insurance and banking to education and labor supply.
The agreement also calls for up to 1,800 Chinese to enter New Zealand each year to work in areas such as traditional Chinese medicine, language teaching and food service.
ADVERTISEMENT
New Zealand said it hopes the agreement will make it a long-term trade partner with China.
``The upfront commitments on goods, services and investment and the mechanisms which provide for further development of the agreement over time should help keep New Zealand at the fore front of the evolution of trade and investment relationships with China,'' the government statement said.
The pact between the country with the largest population in the world, with 1.3 billion people, and a country with just 4.1 million people still has to be formally ratified by New Zealand's Parliament.
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