China-New Zealand FTA Upgrade
China's Ministry of Commerce and New Zealand's Ministry of Trade and Export Growth jointly announced the Upgrade to China-New Zealand Free Trade Agreement (FTA) enters into force on 7 April 2022.
In 2021, the trade between China and New Zealand reached USD 24.7 billion. This Upgrade modernized the original 2008 China-New Zealand FTA to ensure it remains fit for purpose.
The Upgrade also includes new market access commitments in goods and services, and additional trade facilitation measures. In terms of goods, the Upgrade will deliver further market access improvements, resulting in tariff-free access for 99% of New Zealand’s USD 4 billion wood and paper trade to China. The existing FTA will also be augmented by new chapters in e-commerce, competition policy, government procurement and the environment.
Separately, from 1 January 2022, most New Zealand dairy products to China are entitled to duty-free access for the first time because of ongoing implementation of the existing FTA. This will directly benefit many of New Zealand’s exporters to China and is expected to result in additional savings of USD 180 million per annum at current export volumes.