About the free trade agreement
New Zealand and New Zealanders are highly regarded in China.
Chinese business people trust and respect Kiwis because of the value we put on building personal relationships and our straight forward attitude towards business. The Chinese and New Zealand governments also have a good working relationship.
The most significant example of this is the fact that China has pushed New Zealand to the forefront of its international trade relationships by scheduling New Zealand to become the first developed country to have a Free Trade Agreement (FTA) with China.
Back to topNew Zealand was also the:
- first country to start and finish World Trade Organisation negotiations with China
- first country to recognise China as a market economy
- first OECD country to start bilateral comprehensive FTA negotiations with China.
New Zealand's business ties with China date back to the early 19th century, starting with the seal skin trade to Guangzhou and later the arrival of Chinese migrants coming for the gold rush.
Today China is New Zealand's third largest bilateral trading partner, with total merchandise trade worth about NZ$7.5 billion in 2007. China is also a leading source of migrants, students and tourists for New Zealand.
New Zealand only ranks as China's 56th largest market, down from 44 in 2002 (based on World Trade Atlas figures).
Getting preferential access to the world's fastest growing major economy through the FTA has the potential to deliver significant gains to our exporters.
Over the next 20 years the FTA is expected to lift New Zealand exports to China by between 20 and 39 percent, over and above what would be the case without an agreement. In cash, that represents between $260 million and $400 million a year.
The estimates from a joint study report by China's Ministry of Commerce and New Zealand's Ministry of Foreign Affairs and Trade indicate China's gains over the same period are expected to be between US$40 million and $70 million.
Productivity gains flowing from the FTA are expected to make the agreement even more lucrative for New Zealand in percentage terms.
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