The most significant trade agreement ever entered into by New Zealand was signed between China and New Zealand on 7 April 2008 in Beijing. The treaty liberalises trade in goods and services between the two countries, and is expected to come into force on 1 October 2008 after completion of parliamentary processes. Put simply, the FTA will eliminate tariffs on 96% of New Zealand's current export goods to China, making 35% of current exports duty free to China from day one, and a further 6% duty free from 1 January 2009 (mainly wool). Over the next five years, a further 31% of exports will become duty free and beyond that tariffs will be progressively eliminated.
Barriers to services are also being tackled including different rules or requirements for foreign companies compared with Chinese companies, that give those Chinese companies competitive advantage. Different requirements which specify that foreign companies must employ locals or enter into a joint venture with a local company are also being halted.
The most significant trade agreement ever entered into by New Zealand was signed between China and New Zealand on 7 April 2008 in Beijing. The treaty liberalises trade in goods and services between the two countries, and is expected to come into force on 1 October 2008 after completion of parliamentary processes. Put simply, the FTA will eliminate tariffs on 96% of New Zealand's current export goods to China, making 35% of current exports duty free to China from day one, and a further 6% duty free from 1 January 2009 (mainly wool). Over the next five years, a further 31% of exports will become duty free and beyond that tariffs will be progressively eliminated.