China is New Zealand's largest trading partner, export market, and source of imports, accounting for approximately 30% of New Zealand's foreign goods and services exports, and is the largest single buyer of dairy products, meat, wood, and fruit in New Zealand.
The year 2022 just passed is the 50th anniversary of the establishment of diplomatic relations between China and New Zealand. According to data, the bilateral trade volume between China and New Zealand was only NZ $7 million at the beginning of the establishment of diplomatic ties, reaching NZ $6.3 billion by the time the two countries signed the free trade agreement in 2008. After that, the annual growth rate of the bilateral trade volume remained above 10%, and by 2019, it exceeded NZ $30 billion. Even when the COVID-19 hit global trade, bilateral trade between China and Singapore continued to grow "against the wind", with the trade volume of the two countries growing by 36% year-on-year in 2021.
On March 3 this year, New Zealand's new ambassador to China, Graham Robert Morton, visited the China Council for the Promotion of International Trade (CCPIT) and exchanged views with its President, Ren Hongbin, on issues such as the development of economic and trade relations between China and New Zealand, and cooperation between enterprises between the two countries. A few days ago, in a written interview with a reporter from China Trade News, he said, "Over the past 50 years, with the economic development of the two countries, our trade relations have made significant progress. Just as in people-to-people and cultural exchanges and our common global environment, trade relations are an important component of our relations."
"The initial free trade agreement between China and New Zealand entered into force in 2008, which was a success for both sides. Since then, bilateral trade between the two countries has quadrupled in the first decade. To this day, the bilateral trade volume is still growing and relatively balanced."
He told reporters that in 2022, despite the challenge of the COVID-19, the bilateral trade volume between the two countries will still be close to NZ $38 billion. The products available on the market for consumers in both countries benefit both countries, whether they are high-quality food and beverages and specialized medical equipment from New Zealand, or various manufactured goods sold in New Zealand from China, even including electronic products and electric vehicles.
"New Zealand firmly supports free trade, as well as regional and international organizations that support free trade. We seek to engage in trade with all partners within the framework agreed upon by the World Trade Organization, develop specific open regional multilateral agreements and bilateral free trade agreements consistent with WTO commitments, and provide more opportunities for our enterprises," said Mao, New Zealand and China cooperate under regional and multilateral frameworks, including APEC and WTO. Both countries are members of the Regional Comprehensive Economic Partnership Agreement (RCEP), which entered into force in 2022.
At the same time, trade can also affect other important areas, such as ecological protection and climate change. "At the 12th WTO Ministerial Conference in 2022, New Zealand and China pledged to work together on such important issues as fisheries subsidies and trade responses to the COVID-19 epidemic," he said.
On August 18th last year, the Working Group on China's Accession to the Digital Economy Partnership Agreement (DEPA) was officially established. DEPA is the world's first regional agreement on the digital economy, and New Zealand is a member of this agreement. In response, Mao Rui stated that DEPA covers all aspects of the digital economy and supports trade in the digital era. This agreement is open and other parties that meet the standards are welcome to join.
"We are pleased to see that digital agreements have attracted increasing attention and have received requests for accession from South Korea, China, Canada, and Costa Rica. New Zealand very much hopes that the digital agreement can become a pathfinder agreement and attract others to join. We look forward to continuing discussions with China in the field of the digital economy."
In 2022, the Protocol on Upgrading the China New Zealand Free Trade Agreement officially entered into force. Maorui believes that implementing the terms of the agreement is important for companies to maintain clear and predictable rules. The upgrading of the FTA is seen as a new opportunity to further deepen and expand the economic and trade relations between China and New Zealand. Although the previous free trade agreement signed between the two countries has provided duty-free access for 98% of New Zealand's exports and 100% of Chinese exports, the rapid development of bilateral trade in the past decade has also prevented some new elements from being included.
In addition to improvements in market access for goods and services, the upgrade agreement further enhances the convenience of trade between the two countries by reducing red tape, saving time, and reducing enterprise costs. The two sides also pledged to cooperate in new areas such as e-commerce, environmental protection, small businesses, and competition policy through an agreement to upgrade.
"For New Zealand, the upgrade agreement is an important part of driving economic recovery after the COVID-19 epidemic. For New Zealand, a small trade dependent economy, the commitment to the trade structure and the rule-based international order is very important, especially in the context of the pressure COVID-19 epidemic has brought to all economies in the world."
In 2013, China leapt to become New Zealand's largest trading partner, and since then has continuously become New Zealand's largest trading partner, largest source of imports, and largest export market. In response, Mao Rui stated that the cooperation between New Zealand and China in the economic and trade fields involves many aspects, just like the extensive bilateral relations between the two countries. "We look forward to meeting face-to-face this year."
Maori said that the standards held by the Comprehensive and Progressive Trans-Pacific Partnership Agreement and DEPA are an extension of the applicable standards of the WTO. New Zealand supports the accession of economies that have the will and are able to meet the above criteria to these agreements and to make them grow and thrive. As a member of the above-mentioned agreements, New Zealand has received a formal application from China to join the two agreements, and will carry out relevant work in accordance with the process in the future.
At the same time, New Zealand also recognizes China's efforts to improve the business environment and is willing to share its experience in improving the business environment with China. "Since 2019, New Zealand has planned and held seven business environment seminars and exchange meetings, at which officials from central and local regulatory agencies in New Zealand have made several reports. We hope to continue this work in the coming year," said Mao Rui.
"As an embassy, we are looking forward to the sixth China International Import Expo to be held later this year. So far, New Zealand has participated in every China International Import Expo. We expect that a considerable number of New Zealand enterprises will visit China for the first time this year after the COVID-19. At the same time, we welcome more Chinese students, business visitors and tourists to visit New Zealand again in 2023." Mao Rui said. (Our reporter Zhang Hanmei also contributed to this article.)
