New Zealand – China Free Trade Agreement

The New Zealand – China Free Trade Agreement is a bilateral free trade agreement signed between the People's Republic of China and New Zealand in April 2008. It covers a wide range of issues including defence, law and governance, human rights, multilateral trade, regional security, international fisheries management, and developmental assistance. It is the first free trade agreement that China has signed with any developed country, and New Zealand's largest trade deal since the 1983 Closer Economic Relations agreement with Australia.cite news| url=http://www.forbes.com/markets/2008/04/07/china-nz-fta-markets-econ-cx_jc_0407markets2.html |title=Landmark Trade Deal Struck By China, New Zealand |date=2008-04-07 |accessdate=2008-04-07 |publisher=Forbes.com] If ratified by the New Zealand parliament it will be phased in gradually over 12 years, fully coming into force in 2019.

Agreements

This free trade agreement is the first time China has entered into a comprehensive free trade agreement with a developed country. It is New Zealand's largest since the Closer Economic Relations agreement with Australia was signed in 1983. It is expected to take force on 1 October 2008, after ratification by the New Zealand Parliament.

Under the agreement, 37 per cent of Chinese exports to New Zealand and 35 per cent of New Zealand exports to China will be tariff free by October 2008. All tariffs for Chinese exports to New Zealand will be eliminated by 2016, and 96 per cent of New Zealand exports to China will be tariff free by 2019.cite news|url=http://www.stuff.co.nz/4466946a27013.html|title=Landmark Chinese trade pact signed|author=Dan Eaton|publisher=The Press|location=Beijing|date=7 April 2008|subst:adt] Mutual investment and trade in services will also be facilitated. [http://chinafta.govt.nz/1-The-agreement/1-Key-outcomes/1-Goods/index.php Key outcomes] , New Zealand - China Free Trade Agreement, New Zealand Ministry of Foreign Affairs and Trade.]

The deal also allows 1,800 specialised workers to go from China to New Zealand for a period of up to three years. This however will be limited to approved occupations and to a maximum of 100 such workers in any sector, except for traditional Chinese medicine practitioners, Chinese chefs, and Mandarin teaching aides, which have maximums of 150 or 200.cite news|url=http://tvnz.co.nz/view/page/1318360/1691151|title=Sealing the deal with China|date=7 April 2008|subst:adt|publisher=TVNZ] New Zealand will also establish a working holiday scheme enabling up to 1,000 young Chinese nationals annually to travel and work in New Zealand for up to 12 months. Both countries have agreed to enhance business visa conditions and processing. [http://chinafta.govt.nz/1-The-agreement/1-Key-outcomes/2-Services/4-Temporary-entry-and-employment/index.php Temporary entry and employment] , New Zealand - China Free Trade Agreement, New Zealand Ministry of Foreign Affairs and Trade.]

Reactions

New Zealand

The deal was welcomed by a number of New Zealand exporters including the dairy cooperative Fonterra and the New Zealand Seafood Industry Council, while others such as the appliance manufacturer Fisher & Paykel stated that the deal would lead to tougher competition with cheaper-priced Chinese products. [cite press release|url=http://www.scoop.co.nz/stories/BU0804/S00127.htm|title=Fonterra Welcomes Free Trade Agreement with China|publisher=Fonterra|date=7 April 2008|accessdate=2008-04-07] [cite press release|url=http://www.scoop.co.nz/stories/BU0804/S00124.htm|title=FTA with China opens opportunities for seafood|publisher=Seafood Industry Council|location=New Zealand|date=7 April 2008|accessdate=2008-04-07] [cite news|url=http://www.tv3.co.nz/News/Story/tabid/209/articleID/51850/cat/41/Default.aspx|accessdate=2008-04-09|title=Free trade deal does little to cheer up NZ exporters|publisher=TV3 (New Zealand)|date=9 April 2008] The New Zealand Council of Trade Unions opposed the inclusion of workforce in the trade agreement stating that there is potential for skilled Chinese workers to be exploited and underpaid. [cite news|url=http://tv3.co.nz/VideoBrowseAll/PoliticsVideo/tabid/370/Default.aspx|title=Historic trade deal signed with China|date=7 April 2008|accessdate=2008-04-07|format=Windows Media Player video|quote=We need to have some industry standards developed to ensure that these workers are protected and not exploited in their skills and not being paid the minimum wage "– New Zealand Council of Trade Unions Vice-President Sharon Clair"]

While the FTA enjoys the support of Labour and National, New Zealand's two largest political parties, the Green Party and the Māori Party opposed the agreement even before it was signed. [Hone Harawira, [http://www.maoriparty.com/index.php?option=com_content&task=view&id=1666&Itemid=2 Maori Party opposes FTA with China] . Press release, Maori Party, 1 April 2008.] [Russel Norman, [http://www.greens.org.nz/searchdocs/PR11731.html Trading away our integrity – for what?] . Press release, Green Party, 7 April 2008.] Members of the Green Party protested against the signing of the deal, Keith Locke saying that easier access to cheap Chinese workforce could undermine New Zealand workers. [cite news|url=http://tvnz.co.nz/view/page/410965/1691450|title=Openings for Chinese workers|date=7 April 2008 |accessdate=2008-04-07 |publisher=TVNZ] Following the signing, New Zealand First announced that it opposed the deal.cite news|url=http://www.stuff.co.nz/4470482a19715.html |title=Foreign Minister and party oppose FTA |date=8 April 2008 |accessdate=2008-04-09 |publisher=NZPA] Public opinion has been divided; a poll published a week before the signing showed 45% supported the deal, while 32% opposed it.cite news |url=http://www.stuff.co.nz/4458404a11.html |title=Public divided over FTA, poll shows |date=31 March 2008 |accessdate=2008-04-09 |publisher=NZPA]

History

The agreement has taken over three years to negotiate. On 19 November 2004, Helen Clark and President of the People's Republic of China, Hu Jintao announced the commencement of negotiations towards an FTA at the APEC Leaders meeting in Santiago, Chile. The first round of negotiations was held in December 2004. Fifteen rounds took place before the FTA was signed in April 2008 by New Zealand's Minister of Trade Phil Goff and the Chinese Minister of Commerce Chen Deming at the Great Hall of the People in Beijing.cite news| url=http://www.chinadaily.com.cn/china/2008-04/07/content_6594515.htm |title= China, New Zealand ink FTA today |date=2008-04-07 |accessdate=2008-04-07 |publisher=chinadaily.com.cn]

ee also

*Sino-New Zealand relations
*New Zealand free trade agreements

References

External links

* [http://www.chinafta.govt.nz/ New Zealand - China Free Trade Agreement] , New Zealand Ministry of Foreign Affairs and Trade
* [http://chinafta.govt.nz/1-The-agreement/2-Text-of-the-agreement/index.php Full text of New Zealand - China Free Trade Agreement] , New Zealand Ministry of Foreign Affairs and Trade