New Zealand has ratified an upgrade to its 2008 free-trade agreement (FTA) with China that will give exports greater access to the Chinese market.
Photo: 123RF
The entry into force date was agreed in a virtual meeting last week between Minister for Trade and Export Growth Damien O'Connor and his Chinese counterpart Wang Wentao.
O'Connor says the deal modernises the original 2008 FTA and forms part of a body work work the government is doing to drive the country's economic recovery from Covid-19.
"Our trade agenda has very good momentum, with our primary industry exports forecast to hit a record $50 billion this year alone," he said.
The upgrade includes new rules making it easier to export goods to China and cutting down compliance costs by millions of dollars each year.
O'Connor says it also has ambitious environmental measures - the highest level of commitment China has agreed to in any FTA.
The upgrade will also strip tariffs on 12 extra wood and paper products worth about $30 million in trade to China; meaning 99 percent of over $4b wood and paper trade will soon have duty free access.
"Goods and services exports between China and New Zealand reached $20.1 billion in the year ending June 2021. New Zealand businesses will benefit from up-to-date rules underpinning our trade," O'Connor said.
The China FTA upgrade will come into force on 7 April 2022.