China and New Zealand signed a free trade agreement, the first such pact between China and a developed country, on Monday.
The deal was inked by Chinese Commerce Minister Chen Deming and New Zealand Trade Minister Phil Goff. Chinese Premier Wen Jiabao and New Zealand Prime Minister Helen Clark attended the signing ceremony after bilateral talks that took over an hour.
The signing and implementation of the agreement will "further the friendly and cooperative relations between the two countries, promote each other's economic growth, and bring practical benefits to the two peoples," Wen said at the beginning of the talks.
He described the signing as "a day of historical significance" and said the move "met the goal" the two countries set during negotiations.
The two nations formally launched free trade negotiations in December 2004 and concluded the talks in December 2007 following 15 rounds.
According to the agreement, all goods exported from China to New Zealand will be tariff free from 2016, while tariffs on most New Zealand exports to China will be eliminated from 2019.
Beyond trade in goods, the agreement covers the services sector, ranging from banking, environment, education and entertainment, to construction and transport.
The FTA called for up to 1,800 Chinese people to enter New Zealand each year to work in areas such as traditional Chinese medicine, language teaching, Chinese martial arts training, tourism, auditing and food service.
The agreement would also sets up mechanisms for investment promotion and corporations in customs, quality inspection and quarantine, and intellectual property rights (IPR) protection.
"The agreement will push forward bilateral comprehensive ties of cooperation to a higher level, open up new opportunities in trade and investment, and help both countries develop a more open, stable and competitive business environment," said Wang Xinpei, the Ministry of Commerce spokesman.
The pact not only facilitated the access of enterprises looking to the markets of China and New Zealand but also provided consumers with cheaper and better products and services, he added.
The deal came after three years of negotiation as the bilateral trade expanded year on year by 26 percent to 3.7 billion U.S. dollars in 2007.
The agreement with China is the largest for New Zealand since the Closer Economic Agreement with Australia was signed in 1983.
New Zealand is also the first developed country to recognize China's full market economy status.
Clark called the pact "a very significant achievement for New Zealand".
"The signing of this agreement is a very significant achievement for New Zealand. It opens up new opportunities for businesses looking to engage with, or grow their existing links with, China," she said in a statement.
Experts explained the significance of this agreement from the perspective of bilateral relations, specifically economic and trade areas.
"From a point of view of lasting political and economic relations, New Zealand has recognized the importance of China, a large developing country. Both sides have recognized the mutual economic and trade complementarity and common interest," said Zhang Hanlin, president of the WTO Research Institute under the University of International Business and Economics.
Mei Xinyu, an analyst with a research institute under the Ministry of Commerce, added China would get more fair access to the New Zealand market and more guaranteed supply of raw materials.
"New Zealand consumers will get Chinese goods at a further lower price and such products as the agricultural and livestock products of New Zealand will get a larger share in the fast-growing and broad Chinese market."
Free trade with China would also help New Zealand to merge with the development of East Asia, a process in which China would play a crucial role, said Han Feng, deputy director of Institute of Asia-Pacific Studies under Chinese Academy of Social Sciences.
To date, China had signed six free trade agreements with trading partners that included Chile and Pakistan. Negotiations were continuing with Peru, Australia, Iceland and other nations.
Clark arrived?in Beijing?on Sunday for an official visit to China as a guest of Wen. She was accompanied by a 150 member trade delegation.
(Xinhua News Agency April 7, 2008)
