The NZ-China FTA provides for the removal over time of tariffs on 96% of New Zealand exports: New Zealand will make an annual duty saving of $115.5 million, based on current trade.
The NZ-China FTA contains rules to determine which products qualify for tariff cuts (the 'Rules of Origin') as well as rules to counter unfair trade or unexpected surges in imported products from the other country.
The FTA also covers services and New Zealand service providers benefit from China expanding its commitments in services including in education and environmental services.
New Zealand will also benefit from provisions to facilitate the travel of business people to China and from access to skilled workers from China in certain occupations where long term skills shortages exist.
In the area of investment, New Zealand will benefit from enhanced protections for investments established in China, as well as a provision to ensure that New Zealand investors remain competitive with investors from other countries. The FTA also provides New Zealand investors with access to binding third-party arbitration procedures if the Chinese Government breaches the investment provisions.
Measures to improve the business environment
The NZ-China FTA aims in other ways to improve the business environment and open up opportunities for business.
Measures relating to:
- customs procedures
- sanitary and phytosanitary procedures
- technical barriers to trade, and
- intellectual property
are designed to reduce barriers to doing business between New Zealand and China.
The NZ-China FTA establishes a framework for cooperation to enhance the benefits of the FTA. The objective is to build on the existing cooperative relationship and create new opportunities for both countries.
The FTA includes a Mutual Recognition Agreement on Electrical and Electronic Equipment (EEEMRA), which will facilitate conformity assessments of a large proportion of electrical and electronic products traded between New Zealand and China.
The FTA establishes robust dispute settlement mechanisms and contains protections to preserve both countries' domestic regulatory and policy-making flexibility.
China and New Zealand have entered into a binding Environment Cooperation Agreement and a binding Memorandum of Understanding on Labour Cooperation. These Agreements will enhance communication and cooperation on these issues and help towards the objectives of raising working standards and improving environmental protection in both countries.
- Page last updated: 02 July 2010