Historic FTA Signed between China and New Zealand
After 15 rounds of negotiations over the time span of 3 years, China and New Zealand finally signed a free trade agreement covering trade in goods, services and investment on April 6th, making New Zealand the first developed country to sign an agreement with China.
According to the agreement, New Zealand will remove tariffs on 63.6% of imports from China the moment the FTA takes effect and duties on all imports will be eliminated by Jan 1st, 2016. And on the part of China, it will apply zero tariffs on 24.3% of imports from New Zealand when the FTA comes into effect and remove tariffs on almost all goods imported from the country by Jan1, 2019.
Besides reducing trade barriers, the agreement will also promote exchanges in a wide range of economic areas. The FTA stipulates that New Zealand should confer on Chinese businesses preferential treatment regarding service trade in 16 categories across four sectors, including business, architecture and education and provide up to 1,800 work permits for skilled Chinese in such specialized fields as Chinese traditional medicine, Chinese teaching and Chinese cuisine. And China has also made a similar commitment in 15 categories across four sectors, such as environment and transportation.
With two-way trade already totaling $3.7 billion in 2007, the FTA lays a more solid foundation for collaboration and has become another pillar of bilateral relations.
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