Market accessAPECExport controlsNZ and the WTOOECDTrade AgreementsTrade RelationshipsTrade and economic analysisTrade lawTrade scholarships
6.5 Sanitary and phytosanitary measures
6.7 Technical regulations and standards
6.8 Temporary entry/mobility of business people
6.9 Trade and investment promotion
Building on the Trade and Economic Cooperation Framework (TECF), it is agreed by China and New Zealand that the joint FTA feasibility study should address other sector-specific issues and broader horizontal topics of importance to the commercial relationship, and highlight possible areas for cooperation and facilitation to further promote bilateral trade and investment through an FTA. This chapter explores each of these issues in turn, including capacity building, custom facilitation, electronic commerce, intellectual property, sanitary and phytosanitary measures, SMEs cooperation, technical regulations and standards, temporary entry/mobility of business people, and trade and investment promotion.
In facing the opportunities and challenges brought about by globalisation, many countries have found that economic development problems cannot be solved merely through trade and investment liberalisation. They have realised the great significance of capacity building in helping to build up their resistance to potential economic crises and to strengthen their bases for healthy and sustainable economic development. In doing so they have allowed more benefit to be drawn from the globalisation process. They have also recognised the importance of building close government and business relationships to identify and take advantage of new market opportunities.
China
China attaches great importance to capacity building and regards it as the powerful driving force for deepening reform and promoting sound development of the national economy. In recent years China has been working to strengthen capacity building through institutional reform, market function enhancement, infrastructure improvement, human resource development and technological innovation. China's Agenda 21 has set up the goal of achieving sustainable development through the inter-dependent objectives of enhanced economic growth, strengthened human and social development, and protection of the environment. The population of China accounts for more than 20 percent of the total world population. In this sense, the sustainable development of China's economy would be a major contribution to the world economy.
China is also an active participant in capacity building cooperation under the framework of APEC. In 2001 China and Brunei held the APEC High-level Meeting on Human Capacity Building in Beijing. The meeting released the Beijing Initiative, in which human capacity building was recommended as one of the priorities for APEC.
New Zealand
New Zealand regards China as an important partner in the Asia-Pacific region. It is in New Zealand's interests to work together with China in achieving its shared goal of sustainable development. In recognition that government must lead the way in terms of sustainability, the New Zealand Government has developed the Sustainable Development Programme of Action. The programme of action provides a vision for New Zealand and a set of guiding principles for policy that require the Government to take account of the economic, social, environmental, and cultural consequences of its decisions.
Development cooperation between China and New Zealand started in the 1990s. In 1990, the Ministry of Foreign Affairs and Trade of New Zealand and the Ministry of Foreign Trade and Economic Cooperation of China formally launched a comprehensive program for technical cooperation. In 1992, New Zealand decided to provide NZ$1 million (about US$500,000) of assistance annually to China. Since 1993, the two sides have explored and developed various forms of technical cooperation to promote trade and investment. Although started at a later stage and on a smaller scale, China-New Zealand economic cooperation has developed in a steady way with flexible forms and effective results, enhancing the two countries' cooperation in the fields of forestry, animal husbandry, poverty alleviation and other fields of economic and trade relations. By the end of 2002, New Zealand's aid to China totalled US$13 million. New Zealand's Official Development Assistance (NZODA) and later-created NZAID have contributed a lot to bilateral development cooperation.
6.1.3 Areas of future cooperation
The establishment of a China-New Zealand FTA would set an even higher demand for strengthening governments' administrative management ability, the market environment, infrastructure construction, and human resource development. Based on their current economic and technical cooperation, China and New Zealand should further enhance cooperation on capacity building, which will help to consolidate the bilateral economic relationship and promote two-way trade and investment. China and New Zealand should also seek to deepen their government-to-government cooperative relationships with a view to facilitating mutually beneficial trade and economic outcomes for business.
In the context of a future FTA, further co-operation could be explored for capacity building, including:
Effective customs facilitation is essential to the efficient conduct of trade and movement of people across borders, as the efficiency of customs clearance procedures affects the transaction costs of international trade. Cooperation can ensure that customs requirements are met, while minimising any disruption to the flow of goods and people, and avoiding any unnecessary costs to traders or restrictions on trade. There is significant potential to build on existing customs cooperation between China and New Zealand in order to further facilitate and develop the transparency of the bilateral trade.
China
The General Administration of Customs is responsible for managing China's customs framework. In December 2001, China Customs started full national implementation of the WTO (Customs) Valuation Agreement. On the same day, the 2002 version of the Harmonised System was implemented. Training courses for customs officers were carried out nationwide. In meeting the challenges brought about by globalisation and rapid advances in science and technology, China has worked to accelerate the modernisation of customs administration. For example, on the infrastructure side, China Customs has been equipped with 50 container scanning systems, 374 electronic platform balances, 129 identification systems for vehicle plates, 235 electronic gates and 66 identification systems for container codes. On the system side, the current H833 EDI system will be upgraded to H2000 at the end of 2004 in order to achieve paperless trading. China's e-port system, which deals with on-line processing of duty payment (electronic fund transfer), drawback and submission of documents, was put into operation in 2001. Risk management systems have also been in place in all customs houses since 2001. The integrated clearance system has also been enhanced to improve the effectiveness of customs and streamline customs procedures.
New ZealandCustoms functions in New Zealand are undertaken by the New Zealand Customs Service in accordance with the Customs and Excise Act 1996, and other relevant legislation. The New Zealand Customs Service is responsible for protecting the community from potential risks arising from international trade and travel, while facilitating the legitimate movement of people and goods across the border.
New Zealand Customs operates electronic import entry services available to all importers and the average turnaround time for processing entries is 12 minutes. In addition, with most of New Zealand's import and export entries now handled through this system, traders' costs in transmitting electronic data to Customs have also been reduced over the last two years from NZ$1.25 to NZ$0.40 (approximately US$0.84 to US$0.25) per message.
6.2.3 Areas of future cooperation
The Customs administrations of China and New Zealand enjoy a warm relationship and in 1995 signed a Customs to Customs Co-operative Arrangement. Since that time, officers from both administrations have visited to study the other's procedures and, on New Zealand's part, to assist in China's adoption of modern customs management practices.
Both China and New Zealand are signatories to the GATT [Customs] Valuation Agreement,12 under which regard China has adopted the CIF option for valuing imports whilst New Zealand has adopted the FOB option.
Both Customs administrations are members of the World Customs Organisation, signatories to the International Convention on the Harmonized Commodity Description and Coding System, contracting parties to the revised [Customs] Kyoto Convention, and parties to the Arusha Declaration concerning Integrity in Customs and the WCO Resolution on Security and Facilitation of the International Trade Supply Chain. China and New Zealand Customs administrations co-operate under the auspices of the APEC Sub-Committee on Customs Procedures to promote trade facilitation in APEC economies. A number of areas for cooperation have also been identified under the TECF.
A free trade agreement will expedite bilateral trade, requiring a higher standard of customs facilitation between China and New Zealand. Building on the current cooperative arrangements, Chinese and New Zealand customs administrations will explore ways and means to increase the efficiency of customs clearance procedures and mitigate the vulnerability of their respective supply chains.
The increasing use of electronic communications by business in China and New Zealand is improving efficiency and reducing the cost of transactions. Information technology and the development of digital networks are bringing markets closer together, facilitating existing trade and introducing new services. Small and medium sized enterprises in particular profit from the use of e-commerce as it lowers the cost of entering new markets, and from reaching a wider range of international suppliers and customers.
China
With the development of its infrastructure, human resources and technology, China is in a position to further explore the use of electronic commerce.
Since 1993, China has gradually implemented its Gold Bridge Project. This is aimed at establishing a national economic information website, the Gold Customs Project for on-line foreign trade administration, and the Gold Card Project on electronic money. The Chinese central government also actively encourages its departments at various levels to go on-line.
By the end of 2003, the number of internet users in China had exceeded 80 million and the number of computers linked to the internet had reached 30.89 million. Most enterprises in China have established their own ERP systems and have been carrying out network marketing, SCM and CRM.
Chinese enterprises' e-commerce models vary from setting up websites for on-line expositions to on-line trans-national project fairs, never-ending on-line fairs and information portals. Chinese companies have been exploring markets using on-line negotiations, on-line sales promotions and on-line trading. Use of on-line purchasing, on-line auction and on-line bidding in China has been rapidly increasing.
The Electronic Signature Act of the People's Republic of China, which gives electronic signatures legitimate legal status in China for the first time, was endorsed by the Standing Committee of the National People's Congress in 2004.
New Zealand
In 2000, the New Zealand Government launched its e-commerce strategy. It detailed the Government's commitment to provide leadership and to work in partnership with business and the broader community to build the e-commerce capability of New Zealanders. To date, the Government has implemented a significant number of initiatives in all these areas including:
Currently, 75 percent of New Zealanders regularly access the internet, from home, work or public access points. In addition, business use is high, with 95 percent of large firms and 75 percent of small firms using the internet.
6.3.3 Areas of future cooperation
Cooperation between China and New Zealand on e-commerce could facilitate the use of digital solutions and ensure that the development of electronic commerce is not impeded by unnecessary or burdensome legislation and regulations. Cooperative work on e-commerce is also being undertaken in multilateral fora such as APEC, the UN and the WTO.
Under the TECF, China and New Zealand have agreed to explore the development of an MOU in regard to e-commerce, information technology and information industries in order to encourage cooperation in these fields.
China's three golden projects may offer areas for future bilateral collaboration in specific sectors between China and New Zealand.
Under the framework of the future FTA, China and New Zealand should make joint efforts to establish a framework that could ensure the sound development of e-commerce in both of the two countries and consistency with existing multilateral and regional trade rules and norms with a bearing on e-commerce.
Areas for future cooperation under the FTA that could be further explored include:
Intellectual property rights protection is a key factor in facilitating economic development and international trade. The establishment and maintenance of effective intellectual property rights regimes provides incentives to innovate and to disseminate ideas and information. They also help to create an attractive environment for investment and technology transfer. Effective enforcement of these rights is a priority for both countries.
China and New Zealand are members of the World Intellectual Property Organisation, are Parties to the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs), and maintain comprehensive legal frameworks for the protection of intellectual property rights.
China
China regards protection of intellectual property rights as an important component of its reform and opening policies and legal framework. Since the 1980s, China has promulgated dozens of laws and regulations for IPR protection including Trademark Law, Patent Law, Copyright Law, Regulations for Protection of Computer Software, Regulations for Penalizing Anti-IPR Crimes, and Regulations for Customs Protection if IPR, etc. A comprehensive legal system of IPR protection has been established.
China attaches importance to enhancing public awareness of IPR protection. Measures taken include holding seminars, producing TV programmes and publishing books. The relevant authorities also provide training on IPR protection for officials, heads of enterprises and technicians. Since its accession to the WTO in December 2001, China has placed a high priority on intellectual property rights in conformity with its obligations as a member of the WTO. More stringent penalties for intellectual property infringement have been implemented, together with a large-scale campaign against piracy and counterfeiting.
While making great efforts to improve the domestic legal framework for IPR protection, China has also engaged actively in activities of related international organisations, and strengthened cooperation and exchanges with other countries in the field of IPR protection.
New Zealand
New Zealand legislation covers patents, trademarks, copyright, designs and plant variety rights. Enforcement is primarily through civil action taken by right holders through the courts. New provisions in trademark and copyright law have been introduced recently to deter intellectual property infringement and to facilitate enforcement. Effective border control measures are also in place. The maintenance of a modern, legally certain intellectual property rights regime that balances the interests of right holders and users of intellectual property, supported by effective enforcement, is important for fostering innovation and product development, and, more generally, economic growth.
6.4.3 Areas of future cooperation
An FTA would help to strengthen cooperation between China and New Zealand in the field of IPR protection, including through developing a better understanding of each other's IPR legal framework and enhancing transparency in the IPR policy regime.
China and New Zealand agreed in the TECF to work cooperatively bilaterally, regionally and multilaterally on matters of intellectual property protection for goods and services. Further cooperation under an FTA could be explored in the following areas:
The WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) establishes the international rules-based framework for developing and adopting SPS measures. The SPS Agreement acknowledges the right of members to undertake measures to protect human, animal or plant life and health. It requires that such measures should not be used to restrict trade unnecessarily, are based on scientific principles and are not maintained without scientific evidence.
China
Since accession to the WTO, China has established an SPS notification authority and an SPS enquiry point. China has committed itself to complying with the SPS Agreement and ensuring all laws, regulations, decrees, requirements and procedures relating to SPS measures conform to the provisions of the SPS Agreement. The boom in importation of agricultural products has led China to strengthen quarantine inspection measures against a potentially disastrous attack by exotic quarantinable infectious diseases.
The State General Administration of the People's Republic of China for Quality Supervision and Inspection and Quarantine (AQSIQ) is the law-enforcement administrative body of the State Council covering entry-exit commodity inspection, entry-exit health quarantine, entry-exit animal and plant quarantine, certification, accreditation and standardisation. It is the key government authority in charge of entry-exit animal and plant quarantine and food safety, which are the three main issues covered by the SPS agreement of the WTO. AQSIQ is the national SPS enquiry point of China.
The Certification and Accreditation Administration of the People's Republic of China (CNCA) is responsible for the unified management, supervision and registration of foreign manufacturing and processing establishments of imported food. CNCA, according to the Regulations for Administration of Registration of Foreign Food Establishments Importing into China, is authorised to register foreign-located enterprises that produce, process or store foodstuffs destined for importation to China. All foreign establishments exporting foods listed on the Imported Food Catalogue for Establishments Registration must apply to CNCA for registration. Only registered businesses are able to export food to China.
The Standardisation Administration of the People's Republic of China (SAC) is in charge of the drafting, amendment and public promulgation of national standards related to SPS.
AQSIQ is also responsible for risk analysis of entry-exit plants and animals, and for food safety. Based on its risk analysis, AQSIQ is authorised to establish requirements for entry-exit inspection and quarantine, and to negotiate agreements with the related government authorities of other countries, on general SPS issues or detailed inspection and quarantine requirements for specific products. To standardise the risk analysis procedure, AQSIQ has released detailed administrative regulations on risk analysis for animal and plant quarantine.
Non-discrimination is one of the core principles followed by Chinese authorities in the implementation of the WTO SPS Agreement. Local authorities are directly monitored by the AQSIQ to ensure that the laws and regulations on the SPS will be uniformly adhered to.
New Zealand
The Ministry of Agriculture and Forestry is the primary government department responsible for implementing the SPS Agreement. New Zealand manages its SPS systems in accordance with its rights and obligations as a member of the World Trade Organisation (WTO), Office International des Epizooties (OIE), Joint FAO/WHO Codex Alimentarius Commission (Codex) and as a party to the International Plant Protection Convention (IPPC).
New Zealand is a major participant internationally in SPS issues. Officials from both the Ministry of Foreign Affairs and Trade and the Ministry of Agriculture and Forestry regularly represent New Zealand's interests at the WTO SPS Committee in Geneva. Officials from the Ministry of Agriculture and Forestry, including the New Zealand Food Safety Authority13, also hold key elected office positions in the relevant international standard-setting organisations recognised by the SPS Agreement (the OIE, Codex and IPPC). They also chair and provide high-level input to international committees and serve on WTO expert panels.
New Zealand's domestic legislation embodies and promotes the use of science-based risk assessment in managing the risk associated with the international movement of goods and people. The legislative basis for New Zealand's SPS system includes the Biosecurity Act 1993, the Hazardous Substances and New Organisms Act 1996, the Animal Products Act 1999, the Agricultural Compound and Veterinary Medicines Act 1997, the Dairy Industry Amendment Act 2001, the Food Act, and the Food Amendment Act 2002.
The main implementing agencies of New Zealand's SPS measures are the Ministry of Agriculture and Forestry's Biosecurity Authority (MAF BA) (from 1 November 2004 BA will be renamed Biosecurity New Zealand) and the New Zealand Food Safety Authority (NZFSA). The NZFSA administers all legislation covering domestic, import and export food safety requirements, as well as all sanitary and zoosanitary export certification for agricultural and aquatic products. NZFSA also regulates the sale and use of all agricultural compounds and veterinary medicines, wine and organics. MAF BA administers the biosecurity legislation dealing with the regulation of exotic animal and plant health diseases associated with imports and providing for eradication and/or official control of introduced animal or plant health diseases or pests. Along with MAF BA, the Ministries of Health and Fisheries and the Department of Conservation are the other key agencies involved in regulating biosecurity in New Zealand.
MAF administers the process for allowing the entry of primary products not previously imported into New Zealand. Detailed information on this process can be found on the Ministry of Agriculture and Forestry website [external link], but in general terms a potential exporting country makes an initial request to MAF. This request is prioritised based on a number of factors such as importer demand and commitment by potential exporters, along with the information available to undertake the import risk analysis. During the process of developing the import health standard, considerable consultation and communication takes place between the two sides. An assessment for the new product may take around a year provided information is available in a timely manner.
The New Zealand Food Safety Authority is in the process of adapting its electronic sanitary certification system (e-cert) so that it can utilise Chinese characters. It is expected that the production of certificates destined to China using e-cert, and the encouragement of the Chinese authorities to verify the authenticity of at least a proportion of the paper certificates presented against the e-cert database, will help reduce the potential for fraud and counterfeiting. The use of e-cert will provide China and New Zealand with another level of assurance of the authenticity of any animal product presented at China's borders.
6.5.3 Areas of future cooperation
In 2001 a Memorandum of Understanding (MOU) was agreed between New Zealand (MAF) and China (AQSIQ) on SPS issues. The MOU set up a Joint SPS Commission that serves as an umbrella framework that provides officials with an annual high-level discussion forum. The Commission aims to promote co-operation through a range of initiatives and activities which include inter alia information exchange through the sharing of knowledge and experiences gained from relevant international standard setting bodies, a framework to discuss inspection standards and technical market access problems, and the establishment of a work programme to address specific issues.
An objective of the FTA would be to further develop and refine existing commitments and establish common understandings on the principles and mechanisms under which all SPS related interactions will occur, and to record the understandings reached.
In the context of a future FTA, China and New Zealand will have an opportunity to set up an agreed framework to:
Small and medium sized enterprises (SMEs) are viewed internationally as a source of flexibility and innovation, and make a significant contribution to economies both in terms of the number of SMEs and the proportion of the labour force employed. SMEs are a significant component of both the Chinese and New Zealand economies. Owing to their size, they can sometimes face particular challenges in accessing international markets. Nevertheless, SMEs in China and New Zealand are becoming more actively involved in international business activities, and accordingly could be expected to take advantage of the opportunities created by a future China-New Zealand FTA.
China
Chinese SMEs have multiplied rapidly in recent years and have become an important part of the national economy. By the end of 2003 the number of SMEs had reached ten million, accounting for 99 percent of the total number of China's enterprises. The value of products and services created by SMEs account for more than 50 percent of China's GDP.
To promote Sino-foreign SMEs cooperation, China established the International Coordination Centre for SMEs in 1985 and the International Cooperation Association of SMEs in 1990. The Chinese Government has also enhanced SME development through legislation. The Promotion Law of Small and Medium Enterprises was promulgated in June 2002 and came into force from 1 January 2003. This law is to promote the healthy development of SMEs by establishing a fair market competition mechanism and encouraging them to actively participate in international cooperation.
In the context of APEC, China has contributed to SME cooperation in the Asia-Pacific region by hosting both a Technology Exchange Exposition and a Business Forum for APEC SMEs.
New Zealand
The significance of SMEs to the New Zealand economy has been increasing, with further opportunities presented by globalisation and technological development. SMEs in New Zealand are defined as enterprises employing 19 or fewer full time equivalent employees (FTEs). SMEs constitute 96.8 percent of all enterprises in New Zealand and account for approximately 35.6 percent of GDP. SMEs employ 42.7 percent of all FTEs.
6.6.3 Areas of future cooperation
China and New Zealand work together on SME issues through international organisations such as the APEC Small and Medium-Sized Enterprise Working Group (SMEWG), which aims to encourage the development of SMEs in the Asia-Pacific region. APEC has designed tools to enhance international cooperation such as the APEC Small Business Information Hub and the APEC Centre for Technology Transfer and Training for SMEs.
Many areas of future cooperation between SMEs in China and New Zealand will occur within a regional framework of SME cooperation. For example, the 11th APEC SME Ministerial meeting held in October 2004 in Santiago, Chile produced a work plan for SMEs in the Asia-Pacific region. APEC has also identified the importance of e-based tools for SMEs, which could also assist cooperation between New Zealand and Chinese SMEs.
Barriers and restrictions on trade can have a proportionately greater impact on SMEs. SMEs may also find it more difficult to take advantage of existing market access opportunities because of their size. Areas for future cooperation that would facilitate bilateral trade by SMEs could include exchanges of information about the New Zealand and Chinese regulatory regimes, local markets and regional and national economies.
It is suggested that bilateral cooperation and exchange among SMEs be strengthened towards the goal of mutual development by:
Both China and New Zealand have institutions that set standards for the effective conduct of business and trade and to minimise risks to health, safety and the environment. China and New Zealand are also both parties to the WTO Agreement on Technical Barriers to Trade (TBT), which governs the use of technical regulations, standards and conformity assessment procedures and contains disciplines to ensure that such mechanisms do not create unnecessary obstacles to trade. Both countries accordingly recognise that regulators have an important role to play in facilitating trade.
China
China has been making considerable efforts to remove technical and regulatory barriers to trade, especially in the areas of standards and conformance, by taking measures consistent with the WTO TBT and SPS agreements. The adoption of international standards has been greatly increased.
To better carry out its responsibilities for accreditation and standardisation, the Chinese Government established in 2001 the China National Regulatory Commission for Certification and Accreditation (CNCA) and the China National Management Commission for Standardisation under the State General Administration for Quality Supervision and Inspection and Quarantine (AQSIQ), to undertake conformance and standards work respectively. To honour the commitments under China's accession to WTO, AQSIQ and CNCA merged the former two compulsory certification systems and the former "CCIB" and "Great Wall" marks into a new "CCC" Mark in 2002. This applies equally to imported and domestic products. China has amended and adopted new laws and regulations on technical regulations, and standards and conformity assessment procedures, to better implement its obligations under the WTO. Technical regulations will be reviewed and assessed every 5 years to ensure that they are consistent with Article 2.4 of the TBT Agreement. To date, more than 32 percent of Chinese national standards have been aligned with international standards.
China implements a unitary regulatory system for certification and accreditation. The Chinese Government has a certification and accreditation work mechanism in which joint implementation is conducted by relevant parties under the supervision, administration and overall coordination of the Certification and Accreditation Regulatory Department (CARD) of the State Council. A certification body may engage in certification activities only after it is approved by CARD and acquires legal person status according to law.
With regard to products subject to compulsory certification, China applies one product catalogue, one set of technical regulations and standards and conformity assessment procedures, one obligatory mark and one structural fee chart. The Unitary Product Catalogue is jointly formulated and adjusted by CARD and the relevant departments of the State Council. The Catalogue is announced and implemented by the certification and accreditation regulatory department of the State Council, in coordination with the parties. Products listed in the Catalogue must be subject to certification by the certification bodies designated by the certification and accreditation regulatory department of the State Council.
While encouraging harmonisation to international standards in the domestic market, China also looks into ways to strengthen bilateral or multilateral cooperation on standards and conformity. China is a full member of the International Organisation for Standardisation (ISO), the International Electrotechnical Commission (IEC), the International Telecommunications Union (ITU), Codex Alimentarius Commission (CAC), International Accreditation Forum (IAF), International Laboratory Accreditation Cooperation (ILAC), and International Auditor and Training Certification Association (IATCA). China actively participates in the activities of these organisations. It has also signed eleven bilateral agreements on cooperation in the field of conformity assessment.
New ZealandNew Zealand has relatively few regulations for traded goods and services. Manufacturers and traders largely take responsibility for the safety of their products through self-regulation. This is backed up by consumer protection legislation. In some cases industry may partner with consumer representatives and government regulators to develop relevant standards.
Some products do, however, pose a risk to users, consumers and the general public. In those areas, the New Zealand government has imposed mandatory technical requirements that must be met before the product is placed on the market. These requirements are in the form of regulations, administered and enforced by the relevant government agency with appropriate knowledge of the technical issues involved. New Zealand supports the development of international standards and conformity assessment systems that improve efficiency of production and facilitate trade. New Zealand therefore seeks to use applicable international standards where these exist and also unilaterally recognises foreign standards and conformity assessment in many industry areas.
To support this policy New Zealand has established a standards and conformance infrastructure that is comprised of:
6.7.3 Areas of future cooperation
A China-New Zealand consultation mechanism was established in October 2003 to discuss, cooperate and exchange information on regulatory approaches, technical regulations, standardisation and conformity assessments regimes for goods traded. Formal consultations under this mechanism were held for the first time in May 2004. China and New Zealand have already commenced discussions on the possibility of entering into a Mutual Recognition Arrangement on Electrical Equipment.
China and New Zealand have also participated through APEC in regional efforts towards harmonisation or mutual recognition of standards and technical requirements within the region.
An FTA between China and New Zealand could develop existing cooperation through identifying principles, disciplines and procedures for dealing with technical requirements and standards that impact on bilateral trade. Where appropriate, it could examine ways of enhancing Government-to-Government cooperation on these issues, including between regulatory bodies and standard setting agencies at national and provincial levels. The FTA could also promote technical cooperation and capacity building in this area, including through information sharing, seminars, secondments and exchange visits.
In the context of a future FTA China and New Zealand will have the opportunity to consider:
Movement of business people between China and New Zealand is a necessary part of the bilateral trade and is essential to building and strengthening business ties. Therefore facilitating the mobility of business people promotes trade and investment, and helps Chinese and New Zealand industry identify new opportunities arising from an FTA.
China
China has improved regulations and policies to make the temporary entry of foreign business people easier. There are various types of visa and visa-extension procedures for both short business trips and stays of more than one year. Since 2002, multiple entry visas have been issued to foreign investors, qualified scientists and technicians, high-level management personnel, and foreign nationals who carry out inter-governmental aid agreements, who need to make multiple temporary visits to China over a certain period of time.
As an APEC member, China has always participated actively in APEC's cooperation programme on business mobility.
New ZealandUnder the New Zealand Immigration Act 1987, business people (including people making sales to New Zealand businesses, and people establishing, expanding, or winding up any businesses or deals) may enter New Zealand as visitors, for up to 90 days in any calendar year. The New Zealand Immigration Service has branches in Beijing and Shanghai and applications may be made in person or by mail.
Business people who need to spend more time in New Zealand to carry out their business-related activities have two choices. They may apply for a work visa. There are no caps, quotas or labour market tests under this policy; the applicant is simply required to show that their intentions are bona fide (that is, that they have genuine business reasons for travel to New Zealand for the period required). Or, the business person may use their APEC business travel card. The APEC card effectively functions as a three-year multi entry work visa.
6.8.3 Areas of future cooperation
China and New Zealand recognise the importance of making it easier for business people to move between their two countries. Further opportunities for facilitating movement of business people will be considered in the context of an FTA.
With the establishment of an FTA between China and New Zealand, business people will travel between the two countries more frequently. Ease of travel for business people becomes is a key element of facilitating and encouraging greater bilateral trade and investment links. Consequently, the visa authorities of the two countries should strengthen cooperation and in the context of the FTA negotiations further options to facilitate the issuing of visas will be explored.
An FTA between China and New Zealand could also provide for a wide range of specific steps to strengthen bilateral cooperation on business mobility, including:
International trade and investment is becoming increasingly important for economic development, so trade and investment promotion is now a significant part of a country's foreign economic policy framework. During the past two decades, trade and economic relations between China and New Zealand have made great progress, but there is still great potential for increased bilateral trade and investment. Consequently, trade and investment promotion will be an important element of a China-New Zealand FTA.
China
China attaches importance to trade and investment promotion, and to creating new opportunities of trade and investment for enterprises in all sectors. Established in May 1952, China's Council for the Promotion of International Trade (CCPIT) comprises enterprises and organisations representing the economic and trade sectors in China. It is the most important and the largest NGO for foreign trade and investment promotion in China. Its main aims are to enhance Sino-foreign economic and technological cooperation through trade and investment promotion.
In the mid 1980s, Foreign Investment Service Centres were established in many Chinese cities. With the support of the Ministry of Foreign Trade and Economic Cooperation (the predecessor of MOFCOM), the China International Investment Promotion Centre (CIIPC) was established in August 2001. The Federation of Investment Promotion Agencies of China (FIPAC) was set up by CIIPC and 15 local investment promotion agencies in March 2002. Another two important government institutions in charge of trade and investment promotion, the Executive Bureau of Investment Promotion of MOFCOM and the Trade Development Bureau of MOFCOM, were established respectively in March and June of 2003. Since then a comprehensive nation-wide trade and investment promotion network has been led and coordinated by MOFCOM.
At present, the China Export Commodities Fair, the China Trade and Investment Fair and the China New and High Technologies Fair - all of which are held annually - have constituted a nation-level framework of trade and investment promotion. Furthermore, organisations have been established at provincial level to implement trade and investment promotion activities for local economic development.
As an APEC member, China has always been an active supporter of the activities of the APEC Trade Promotion Working Group. This has involved hosting and participating in trade fairs, exchanging information on trade and investment with other member economies, and strengthening communication with business sectors.
New ZealandTrade and Investment promotion in New Zealand is facilitated nationally by New Zealand Trade and Enterprise (NZTE) the Government's economic and trade development agency. On a regional and provincial level it is facilitated by regional economic development agencies (EDA) funded and administered by local government.
NZTE has a network of 48 offices around the world established to understand the local business cultures, speak the local language and provide hands-on assistance and trade promotion assistance for New Zealand exporters. The offices provide local buyers, importers and distributors with information and intelligence on New Zealand's business capability, assisting them to source quality New Zealand products and services.
Investment New Zealand is the Government's national investment promotion agency (IPA) and is a specialist unit within New Zealand Trade and Enterprise. Investment New Zealand's principal aim is to increase the quality and quantity of sustainable FDI into New Zealand. Investment New Zealand encourages and helps to facilitate all forms of foreign investment, which typically arise from corporate relocations, the establishment of new businesses in New Zealand, and/or joint ventures or partnerships with New Zealand companies either in New Zealand or off shore.
Investment New Zealand has direct representation in North America, North and South East Asia and Australia to facilitate investment and to be a local contact in the country of origin for the investor(s).
6.9.3 Areas of future cooperation
The establishment of an FTA will further enhance bilateral cooperation on trade and investment promotion by allowing the two countries to better share their successful experiences in this field. Under an FTA framework, the two countries could enhance communication and information exchange. Areas for future cooperation could include:
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Agreement on the Implementation of Article VII of the GATT 1994. back
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The New Zealand Food Safety Agency is mandated with protecting
and promoting public health and safety and facilitates access to markets
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