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Background Papers
[these are all links to Beehive.govt.nz]
Submissions are invited on the negotiation of a Free Trade Agreement (FTA) between New Zealand and China.
The Trade and Economic Cooperation Framework between New Zealand and China provides for a Joint Feasibility Study into a bilateral FTA negotiation, with actual FTA negotiations to begin soon after. This paper provides general information on the Joint Feasibility Study and on the negotiation of an FTA between New Zealand and China. Information on how to make a submission is provided at the end of this paper. The public consultation process is an ongoing one that will provide further opportunities for input and comment on negotiation of an FTA with China.
The purpose of the Joint Feasibility Study is to provide an assessment and analysis of the factors relevant to negotiation of an FTA between New Zealand and China. The Study will:
An FTA between New Zealand and China is expected to strengthen economic development and growth through the development of a closer economic relationship between New Zealand and China by:
Previous bilateral trade agreements entered into or under negotiation by New Zealand have addressed or are addressing:
Initial and very simple modeling work suggests that an FTA between China and New Zealand would have a positive impact on the New Zealand economy. The greatest gains for New Zealand merchandise exports are likely in agriculture, specifically the dairy, fruit and vegetable and processed food sectors. Further gains are likely also for services exports, investment and through potential improvements in trade facilitation. New Zealand’s trade in goods and services with China faces a number of barriers. Goods barriers include restrictive tariffs in certain sectors, quotas and a range of non-tariff measures. These can include regulatory restrictions, customs procedures, inspection, certification, approval processes, testing, sanitary and phytosanitary requirements and labelling requirements, as well as any other business compliance costs. In relation to services a wide range of regulatory and other barriers exist.
A key objective of an FTA for New Zealand is to reduce these restrictions to achieve significant gains across a range of goods and services for New Zealand exporters. The Government is therefore interested in information from New Zealand businesses on the non-tariff and regulatory barriers that affect their ability to export to China. The Government would welcome specific information you can share regarding non-tariff barriers that you have experienced in trading with China. You may do this by filling in the Non-Tariff Barriers Questionnaire, which comprises the following two parts, with a section for other comments:
You may choose to complete the Non-Tariff Barriers Questionnaire and / or make a written submission.
Some examples of tariffs applicable to New Zealand exports to China:
New Zealand has progressively reduced tariffs over time. Currently 95% of all imports (by volume) coming into New Zealand have a zero tariff. The Tariff Review last year detailed a programme of further reductions until 2009. As at July 2009 the highest Normal Tariff (Most Favoured Nation (MFN) tariff) will be 10% on clothing, footwear and carpets. At the same time New Zealand remains committed to making progress towards achievement of the Asia Pacific Economic Cooperation (APEC) Bogor Goals by developed countries by 2010 and by developing countries by 2020. When the Government made decisions on the Tariff Review it noted that the decisions reached in the Review did not preclude FTA negotiations or tariff reductions negotiated in the present WTO Doha Round.
New Zealand and China both welcome foreign investment in their economies. The Government is interested in any views on what measures could be adopted to help encourage further investment flows between New Zealand and China.
An important objective of an FTA will be developing closer commercial linkages between New Zealand and China. These linkages will facilitate trade in goods and services, and investment. The Government is interested in any views of New Zealand businesses as to any measures that could be pursued to achieve this objective.
In the recently concluded New Zealand-China Trade and Economic Cooperation Framework, New Zealand and China committed to exploring opportunities to share information and to cooperate on measures to promote environmental protection, sustainable development and resource management, and the protection of biodiversity. In 2001 the Government adopted a Framework for Integrating Labour Standards and Trade Agreements and a Framework for Integrating Environment Standards and Trade Agreements. The Government is interested in views on how New Zealand could pursue the objectives contained in these Frameworks in the context of FTA negotiations with China.
As in negotiations for Closer Economic Partnerships, New Zealand will seek a provision which gives New Zealand governments scope to implement policies related to Maori, including in fulfilment of obligations under the Treaty of Waitangi, without being constrained by other provisions in the agreement.
The Government seeks submissions from any interested parties regarding the negotiation of a Free Trade Agreement with China. You are also welcome to contact the China FTA Taskforce with any questions or comments.
