China and New Zealand sign an upgraded free trade agreement, 99% of wood and paper products will be free of tariff!
Release date: 2021-02-01 08:41 Source: furniture industry Author: Internet Click:
China is one of the largest consumer markets in the world. Both New Zealand and Australia want to expand their exports to China. However, due to similar geographical and climatic conditions, there is an obvious competitive relationship between the two countries. Many importers and consumers will choose between the two countries when purchasing.
On January 26, 2021, Minister Wang Wentao of the Ministry of Commerce and O'Connor, Minister of trade and export growth of New Zealand, respectively, signed the protocol on upgrading between the government of the people's Republic of China and the government of New Zealand by video on behalf of the two governments.
China and New Zealand signed an agreement on Tuesday to upgrade the existing free trade agreement, which will give New Zealand's exports more opportunities to enter the world's second largest economy.
At a news conference, New Zealand Prime Minister Jacinda ardern confirmed the signing of the agreement and pointed out its importance in the face of a serious pandemic and global economic crisis.
Wang Wentao, Minister of Commerce of China, and Damien OConnor, Minister of trade and export of New Zealand, signed the protocol to upgrade the China Singapore FTA by video.
New Zealand said the agreement "modernizes" its existing free trade agreement with China and ensures that it remains applicable for the next decade.
This reduces the difficulty of exporting to China and is expected to reduce the compliance cost of New Zealand's exports by several million dollars a year.
OConnor said in a statement, The upgraded agreement also means that 99% of New Zealand's timber and paper products with a trade volume of nearly NZ $3 billion (US $2.16 billion) with China will be granted tariff free access.
The agreement will benefit exporters of perishable goods in New Zealand, such as seafood, forestry and other primary industries.
The existing export conditions of dairy products will be maintained. All defensive tariffs on most products will be eliminated within one year, while those on milk powder will be cancelled within three years.
"This means that by January 1, 2024, all New Zealand dairy exports to China will be tariff free," OConnor said.