New Zealand-China Free Trade Agreement

Summary of the Joint China-New Zealand Free Trade Agreement Feasibility Study 

Read the full report: Joint Study Report on the Free Trade Agreement between China and New Zealand - 20 November 2004

• The study concludes that both China and New Zealand will benefit from an FTA.
• Both economies will expand, as will bilateral trade, if immediate, comprehensive and reciprocal elimination of trade barriers is achieved between China and New Zealand.
• New Zealand exports of goods and services to China between 2007 and 2027 are expected to grow on average between NZ$260 million and $400 million a year. 
• Chinese exports of goods and services to New Zealand between 2007 and 2027 are expected to grow on average between NZ$55 million and $100 million a year. 
• In percentage terms, this equates to New Zealand's exports to China increasing by between 20 and 39% above what would have been achieved if an FTA had not been negotiated.  China's exports to New Zealand are expected to be between 5 and 11% higher over the twenty year period.  
• The study notes the complementarities that exist between the Chinese and New Zealand economies and does not identify any major problems standing in the way of a free trade agreement.
• The study concludes that an FTA will deliver positive benefits across both economies, but notes that some sectors in both China and New Zealand might face some adjustment challenges and recommends that these be taken into account in negotiations.
• It recommends that negotiations start as soon as possible and cover goods, services and investment. 
• This recommendation has been agreed by both Governments. When they met in Santiago on November 19 2004, Prime Minister Helen Clark and Chinese President Hu Jintao announced that negotiations would begin as quickly as possible.
•  A wide range of non-tariff measures is identified as affecting trade on top of tariff barriers, which can be quite high in some product areas.  Likewise a range of services and investment barriers is also identified.
• The importance of sustainable development - including labour and environment issues for both Governments - is highlighted in the study.  Specific outcomes are envisaged.
• On top of the barriers identified, the study also covers capacity building, Customs facilitation, e-commerce, intellectual property, sanitary and phytosanitary measures, SME cooperation, technical regulations and standards, temporary entry/mobility of business people, trade and investment promotion, competition policy and government procurement.

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