China and New Zealand signed a free-trade agreement in Beijing on Monday, the first such -trade accord that China has signed with a developed country. Chinese Premier Wen Jiabao and New Zealand Prime Minister Helen Clark witnessed the signing ceremony. All goods exported from China to New Zealand will be tariff-free from Jan. 1, 2016 while tariffs on 96 percent of New Zealand exports to China will gradually be eliminated beginning Jan. 1, 2019. Trade between the two countries expanded 26 percent to $3.7 billion dollars in 2007.
Although China runs an overwhelming trade surplus with New Zealand, the agreement will boost the value of the latter's exports from $180 million this year to an estimated $280 million a year. The agreement is scheduled to be enacted on Oct. 1, after the New Zealand parliament passes implementing legislation. New Zealand's leading exports include lamb, wool, seafood and dairy products. The agreement also covers the services sector, ranging from banking, environment, education and entertainment to construction and transportation. The pact also calls for up to 1,800 Chinese to enter New Zealand each year to work in areas such as traditional Chinese medicine, language teaching, Chinese martial art training, tourism, auditing and food service.
Journal of Commerce
