New Zealand in line for $75m savings with ANZTEC

New Zealand in line for $75m savings with ANZTEC
New Zealand has successfully signed a trade deal with Chinese Taipei despite the absence of formal diplomatic relations and with the full liberalisation of trade between countries, we can expect an annual duty saving of NZ$75.8 million based on current trade.

New Zealand has successfully signed a trade deal with Chinese Taipei despite the absence of formal diplomatic relations and with the full liberalisation of trade between countries, we can expect an annual duty saving of $75.8 million based on current trade.

pramuk pereira nz chinese taipei trade agreement​The agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu (Chinese Taipei) on Economic Cooperation (ANZTEC) came into force on December 1, meaning 70 percent of our exports to Chinese Taipei now enjoy tariff-free access.  Almost all dairy exports including milk powder, cheese and butter; and all New Zealand apple, cherry and wine exports are now on tariff-free entry. 

A unique feature of ANZTEC is the high consideration given to green growth and sustainable development objectives. ANZTEC liberalises 132 environmental products and believes that free trade in environmental goods and services can combat global environmental challenges including climate change; natural resources protection; water, soil and air pollution; management of waste and waste water; and depletion of the ozone layer.

ANZTEC, along with the New Zealand-China Free Trade Agreement (NZCFTA) which came into force in 2008, has strengthened New Zealand’s trade relationships with Asia and opened doors for New Zealand firms to lucrative markets. According to the World Bank's ease of doing business rankings in 2013, Chinese Taipei claims 16th position but sits within the top five in Asia (while New Zealand is third in the world). In 2013 Chinese Taipei was New Zealand’s 10th largest export destination and in terms of total trade is our 13th largest trade partner. 

The country is a significant tourism market and a source of investment. As at March 2013 Chinese Taipei was among the top 10 investors with over $2.4 billion worth of investments. Considered to be the miracle of Asia, it is one of the largest traders in the region. 

Though New Zealand has relatively a small and isolated economy as a country it is a success story in terms of trade relations. New Zealand signed a comprehensive trade deal with Australia in 1983 even before the establishment of the European Union or World Trade Organization. Today it has nine trade agreements in force and negotiations are going on with other parties. 

Pramuk Perera is the first doctoral researcher in International Business at the University of Otago. He investigates the influence of the New Zealand-China Free Trade Agreement (NZCFTA) on the international business of firms based in New Zealand.  He has experience at top global organizstions with experience in Asia, Europe, the Middle-East and now in the Pacific