NZ-HK trade deal welcomed
Auckland
– November 13 2009: The announcement of a closer economic partnership
(CEP) between Hong Kong and New Zealand is warmly welcomed by the Hong
Kong New Zealand Business Association (HKNZBA).
Initial
CEP negotiations stalled in 2002 over rules of origin, but were
recommenced in May this year on the back of the Free Trade Agreement
signed between New Zealand and China.
Prime
Minister John Key and Hong Kong Chief Executive Donald Tsang made the
announcement that the negotiations were concluded in Singapore on the
margins of the APEC Economic Leaders Meeting. It
is the first free trade agreement for Hong Kong with a foreign economy,
although it has a Closer Economic Partnership Agreement with Mainland
China.
A
NZ Government release after theannouncement says with both economies
strongly committed to trade liberalisation, it is hoped that the CEP
will act as a platform to help pave the way forward for shared economic
growth and carry trade and investment linkages to a new level.
"While
merchandise trade between the two economies has grown by an annual
average of 7.4 per cent for the past five years and is in excess of
NZ$1 billion, there is also considerable potential in the service
sector, in particular in the areas of education, tourism, business and
environmental services as well as in investment with Hong Kong, China
seen as a hub for investment in the region,” the statement reads
HKNZBA
President Eva Ho (pictured) says NZ Trade Minister Tim Groser’s
comments that ‘Hong Kong is an extremely sophisticated market and its
proximity and special relationship with mainland China makes it a very
important strategic partner in the region for New Zealand’, go straight
to the core of the agreement’s importance in New Zealand’s trading
portfolio.
“Traders have long taken advantage of Hong Kong’s free trade policies,” Ms Ho says. “More
recently HK dropped its duties on wine and look how New Zealand has
been able to hugely benefit from that. There has been rapid growth in
the volume of NZ wine sold to Hong Kong and into the mainland. Last
week saw 40 NZ wineries exhibit at the HK Wine Fair and win 90 medals
and three trophies in the associated competition.
“Now
the CEP agreement will allow our service sector to truly explore
opportunities in the same way. Prime Minister John Key has pointed to
education, tourism, business and environmental services and investment
as being winners here. Our understanding is that professionals in many
service sectors will also benefit at a career options level.”
Ms
Ho says the detail of the agreement has yet to be released and the
formal signing of the CEP is not expected until early-mid 2010. But as soon as the signing is complete the HKNZBA will be helping the NZ Government to disseminate information.
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