The New Zealand–China Free Trade Agreement is a bilateral

free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold econ ...

agreement signed between the

People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

and

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...

in April 2008. 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. The New Zealand-China FTA was signed on 7 April 2008 in

Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...

, after negotiations that spanned fifteen rounds over three years. It entered into force on 1 October 2008, after

ratification Ratification is a principal's approval of an act of its agent that lacked the authority to bind the principal legally. Ratification defines the international act in which a state indicates its consent to be bound to a treaty if the parties inte ...

by the New Zealand Parliament. The provisions of the agreement are expected to be phased in gradually over 12 years, fully coming into force in 2019.

Agreements

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. Mutual investment and trade in services will also be facilitated.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. 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.Temporary entry and employment
New Zealand - China Free Trade Agreement, New Zealand Ministry of Foreign Affairs and Trade.

History

2008 agreement

The New Zealand-China free trade agreement took over three years to negotiate. On 19 November 2004,

Helen Clark Helen Elizabeth Clark (born 26 February 1950) is a New Zealand politician who served as the 37th prime minister of New Zealand from 1999 to 2008, and was the administrator of the United Nations Development Programme from 2009 to 2017. She was ...

and President of the People's Republic of China, Hu Jintao announced the commencement of negotiations towards an FTA at the

APEC The Asia-Pacific Economic Cooperation (APEC ) is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region.

Leaders meeting in

Santiago Santiago (, ; ), also known as Santiago de Chile, is the capital and largest city of Chile as well as one of the largest cities in the Americas. It is the center of Chile's most densely populated region, the Santiago Metropolitan Region, whos ...

Chile Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...

. 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 Philip Bruce Goff (born 22 June 1953) is a New Zealand politician. He was a member of the New Zealand Parliament from 1981 to 1990 and again from 1993 to 2016. He served as leader of the Labour Party and leader of the Opposition between 11 N ...

and the Chinese Minister of Commerce

Chen Deming Chen Deming (; born 1949) is a former the President of Association for Relations Across the Taiwan Straits of the People's Republic of China. Early life Chen was born in Shanghai in 1949. He went on to receive a Bachelor's Degree in Economics, a ...

at the Great Hall of the People in

. The deal was welcomed by a number of New Zealand exporters including the dairy cooperative

Fonterra Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by around 9,000 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exce ...

and the New Zealand Seafood Industry Council, while others such as the appliance manufacturer

Fisher & Paykel Fisher & Paykel Appliances Holdings Ltd () is a major appliance manufacturer which is a subsidiary of Chinese multinational home appliance manufacturer Haier. It is a multinational corporation based in East Tāmaki, New Zealand. Originally a ...

stated that the deal would lead to tougher competition with cheaper-priced Chinese products. The

New Zealand Council of Trade Unions The New Zealand Council of Trade Unions (NZCTU or CTU; mi, Te Kauae Kaimahi) is a national trade union centre in New Zealand. The NZCTU represents 360,000 workers, and is the largest democratic organisation in New Zealand. History It was for ...

opposed the inclusion of workforce in the trade agreement stating that there is potential for skilled Chinese workers to be exploited and underpaid. While the FTA enjoys the support of New Zealand's two largest political parties, Labour and

National National may refer to: Common uses * Nation or country ** Nationality – a ''national'' is a person who is subject to a nation, regardless of whether the person has full rights as a citizen Places in the United States * National, Maryland, c ...

, the

Green Party A green party is a formally organized political party based on the principles of green politics, such as social justice, environmentalism and nonviolence. Greens believe that these issues are inherently related to one another as a foundation f ...

and the

Māori Party Māori or Maori can refer to: Relating to the Māori people * Māori people of New Zealand, or members of that group * Māori language, the language of the Māori people of New Zealand * Māori culture * Cook Islanders, the Māori people of the Co ...

opposed the agreement even before it was signed. Members of the

protested against the signing of the deal, Keith Locke saying that easier access to cheap Chinese workforce could undermine New Zealand workers. Following the signing, New Zealand First announced that it opposed the deal. Public opinion has been divided; a poll published a week before the signing showed 45% supported the deal, while 32% opposed it.

2014 Upgrade

In 2014, China and New Zealand announced that they would seek an upgrade of the free trade agreement. It is expected that the upgrade will be completed some time in 2016.

2019 Upgrade

In early November 2019, New Zealand and China agreed to upgrade their free trade agreement. New provisions have included making exports to China easier, improving China's commitment to environmental standards, and giving New Zealand preferential access to the wood and paper trade with China. In return, New Zealand will ease visa restrictions for Chinese tour guides and

Chinese language Chinese (, especially when referring to written Chinese) is a group of languages spoken natively by the ethnic Han Chinese majority and many minority ethnic groups in Greater China. About 1.3 billion people (or approximately 16% of the ...

teachers. On 26 January 2021, New Zealand and China signed a deal to upgrade their free trade agreement to give New Zealand exports greater access to the Chinese market. These provisions include eliminating or reducing tariffs on New Zealand exports such as dairy, timber, and seafood as well as compliance costs.

References

External links

New Zealand - China Free Trade Agreement
New Zealand Ministry of Foreign Affairs and Trade
Full text of New Zealand - China Free Trade Agreement
New Zealand Ministry of Foreign Affairs and Trade {{DEFAULTSORT:New Zealand-China Free Trade Agreement Free trade agreements of New Zealand Free trade agreements of China Treaties concluded in 2008 Treaties of the People's Republic of China Treaties entered into force in 2008 China–New Zealand relations