Market accessAPECExport controlsNZ and the WTOOECDTrade AgreementsTrade RelationshipsTrade and economic analysisTrade lawTrade scholarships
Find MFAT's information paper on a country or territory. (We don't have information papers on all countries.)
Although we have tried to use plain English content on the site, you may come across specialist terms and acronyms. Find out what they mean in our glossary of terms.
If you come across a term that isn't included in the Glossary please send us an email.
Record of Initial Exploratory Discussions between Hong Kong, China and New Zealand on a Possible Closer Economic Partnership Agreement
Wellington, 16-17 November 2000 & Hong Kong, 22-23 February 2001
Hong Kong, China (hereinafter referred to as "Hong Kong") and New Zealand officials met in Wellington on 16 and 17 November 2000 and in Hong Kong on 22 and 23 February 2001 for informal, exploratory discussions on the possibility of negotiating a Closer Economic Partnership Agreement (the Agreement).
The two delegations would recommend to their respective Governments that the negotiations be based on the preambular principles, objectives and elements for negotiations set out in Annex A.
They would recommend to their respective Governments that negotiations commence as soon as practicable, once their Governments have taken decisions on appropriate negotiating mandates.
Subject to each economy's laws on the protection of confidentiality of information, both sides would exchange information on the issues that pertain to the elements agreed for the negotiations, as a means of increasing understanding and knowledge of their respective trade and investment regimes
Other issues raised or discussed at the exploratory discussions which would not form elements of the negotiations, should they commence, are set out in Annex B.
For the delegation of Hong Kong, China
Cherry K C Ling
For the delegation of New Zealand
Peter Hamilton
Preambular Principles - The following would be the preambular principles of the Agreement :
Objectives
The objectives of Hong Kong and New Zealand in negotiating this Agreement are:
Elements for Negotiations
Competition
The objective would be to agree on a framework under which the two economies can work actively to develop and promote an improved competitive environment through the implementation of the APEC Principles to Enhance Competition and Regulatory Reform.
Tariffs
Hong Kong and New Zealand would seek to agree on the modalities for early elimination of tariffs on all goods of Hong Kong and New Zealand origin by an agreed date.
Rules of Origin
Negotiations would seek to agree on a set of modern, forward looking rules of origin, designed to encourage bilateral trade in goods between Hong Kong and New Zealand, while at the same time ensuring that only goods of Hong Kong or New Zealand origin benefit from the removal of tariffs.
Non-tariff Barriers
The objective of negotiations would be to develop rigorous disciplines to ensure that non-tariff barriers are not used or developed to impede trade between the two economies. Quantitative import and export restrictions and prohibitions would be a particular focus.
Subsidies
Negotiations would seek to agree on a framework of rules prohibiting the use of export subsidies on all goods, including agricultural products. Negotiations would consider agreeing on a framework by which additional disciplines on subsidies might be considered, while recognising the right of both governments to pursue their social development objectives and promote economic development in a manner which does not distort trade between the two economies.
Customs Procedures
Negotiations would seek to identify ways to simplify customs procedures for bilateral trade, in particular, through the use of electronic means and building on the APEC goals of paperless trading. Both sides would also seek to agree on a framework to promote bilateral customs cooperation, building on the existing cooperative arrangement between the Hong Kong Customs and Excise Department and the New Zealand Customs Service concluded in 1991.
Emergency Action
Negotiations would seek to agree on a framework which would address the full range of options relating to the liberalisation of safeguard measures in their bilateral trade.
Anti Dumping
Negotiations would study policy in this area, including the scope for liberalising anti-dumping policy with regard to bilateral trade.
E-commerce/New Economy
Negotiations would aim to agree on a framework to consider ways to improve the regulatory environment in both economies that better enables business to take full advantage of the new opportunities opening up in this area.
Trade in Services
Negotiations would seek to agree on a framework for liberalisation of trade in services between the two economies, consistent with the APEC goal of free and open trade and investment by 2010. As part of this process, the two economies would progressively liberalise their trade in services, building on their GATS commitments and agree to consider a framework under which the competent bodies of Hong Kong and New Zealand can consider issues relating to the recognition of qualifications and accreditation.
Investment
Negotiations would aim to enhance the liberalisation and promotion of investment between the two economies, building on existing multilateral, regional and bilateral frameworks.
Standards and Conformance
The aim would be to reduce, for their respective businesses, transaction and compliance costs associated with technical, sanitary and phytosanitary barriers to trade, including through the reduction of such barriers. An initial focus would be on establishing a framework for reaching agreements on mutual recognition of equivalence of mandatory requirements, conformity assessment, and equivalence of standards.
Government Procurement
The objective would be to achieve liberalisation through the establishment of a framework of rules in the government procurement process of both economies based on APEC's Non-binding Principles on Government Procurement and the WTO Agreement on Government Procurement.
Intellectual Property
The two economies would seek to ensure appropriate protection of intellectual property in accordance with WTO TRIPS obligations.
Trade and Environment
The two economies would discuss recent developments on trade and environment with a view to identifying issues of mutual concern for further dialogue and cooperation.
Dispute Settlement
The two economies would seek to agree on a simple mechanism for timely settlement of disputes between them concerning their rights and obligations under the Agreement.
Transparency
The two economies would seek to enhance transparency and understanding of each other's measures pertaining to or affecting bilateral trade and investment, including the exchange of information on business laws.
Review
The two economies would seek to include in the Agreement a mechanism for periodic reviews.
Participation by other Economies
The Agreement would be open to accession by economies or economic groupings that share its underlying objectives. The two economies would have special regard to the individual circumstances of such economies or economic groupings when considering their requests for accession.
Exceptions
Both economies would retain the right to adopt measures for a limited number of purposes to be agreed, provided that the measures would not constitute means of arbitrary or unjustifiable discrimination, or a disguised restriction on trade or investment, and that the measures would be no more restrictive than necessary to achieve the agreed purposes.
Taxation
Noting that Hong Kong and New Zealand had not yet concluded a Double Taxation Agreement, the two delegations would propose for consideration by their respective taxation authorities the merits of the two economies entering into discussions on matters relating to avoidance of double taxation.
Air Services
Both sides recognised the importance of promoting a liberal bilateral aviation relationship. To this end, they would invite their respective aviation authorities to consider this issue separately within the framework of their bilateral Air Services Agreement.
Trade and Labour
New Zealand officials explained the policy of the New Zealand Government that legitimate issues of labour standards should be better integrated with trade agreements, but these concerns should not be used as devices to protect against fair competition from developing countries.
Hong Kong officials explained the long standing and principled position of the Hong Kong Government that it was inappropriate to link such issues to any trade negotiations and agreements or to discuss such issues in any economic and trade fora. The ILO provides a mechanism to address labour standards issues on an international level.
Both sides found the exchange useful in enhancing understanding of each other's positions, and would be prepared to continue the exchange on a need basis and in the appropriate context.
