New Zealand China Trade Association welcomes signing of NZ-China FTA upgrade

The New Zealand China Trade Association (NZCTA) on Tuesday welcomed the signing of the New Zealand-China free trade agreement (FTA) upgrade.

Delivering his keynote speech at a forum on the New Zealand-China FTA upgrade and the Guangdong-Hong Kong-Macao Greater Bay Area development opportunity in Auckland, Martin Thomson, chair of the NZCTA, said "The recent signing of the FTA upgrade has been welcomed by businesses in both countries. It is a strong signal of the commitment by both governments to grow the economic relationship between the two countries, build on the success of the original FTA, which led to China becoming New Zealand's largest trading partner."

Thomson believed that China's recovery from the COVID-19 is creating greater opportunities for New Zealand businesses.

"China and New Zealand have both responded well to the pandemic. Both have managed to contain the spread and put measures in place to react effectively to what are now isolated outbreaks. China's economy has rebounded very strongly, which has resulted in ongoing opportunities for New Zealand businesses trading with China."

According to Thomson, although COVID-19 has resulted in significant challenges and disruptions to trade and investment, it has also resulted in increased business for some sectors, opened up new opportunities for others and led to the adoption of new business models and the introduction of different products and services in response to the pandemic.

Thomson thus highlighted several key sectors for deeper bilateral trade and economic cooperation.

"New Zealand's health and wellbeing exporters have had success in China due to increasing demand from Chinese consumers for their products and services. Our dairy and horticultural exports to China have grown and, despite a decline, our forestry, meat and seafood exports have held up well, while some of our niche food and beverage exporters to China have gained a foothold in the market."

"Here in New Zealand there has been increased demand for manufactured products from China. The digital economy has become increasingly important as a channel to market for many companies and it is pleasing to see that the FTA upgrade incorporates changes for e-Commerce," said Thomson.

Thomson was not unfamiliar with the Guangdong-Hong Kong-Macao-Greater Bay Area, which has for a long time been a very significant contributor to New Zealand's economic relationship with China.

"The Guangdong-Hong Kong-Macao-Greater Bay Area is a significant source of imports, and tourists and students prior to the effect of COVID-19, and a recipient of a large proportion of New Zealand's exports to China," said Thomson.

He was looking forward to learning more about the New Zealand-Guangdong Commodity Exhibition Centre and the Online Trading Platform that was launched at the Forum, and how these platforms will contribute to a strengthening of the economic relationship between the Guangdong-Hong Kong-Macao-Greater Bay Area and New Zealand.

The NZCTA is celebrating its 40th anniversary of establishment. The organization is committed to supporting and representing New Zealand and Chinese companies in bilateral trade to grow the economic relationship between the two countries.

In 2008, China signed the FTA with New Zealand, the first FTA between China and a developed country. The two countries signed a protocol on upgrading the FTA in January this year.

China and New Zealand's two-way trade quadrupled from around 4.4 billion U.S. dollars in 2008 to over 18.1 billion U.S. dollars in 2020, according to official figures from China's Commerce Ministry. Since 2017 China has been New Zealand's top trading partner.