New Zealand Hong Kong Free Trade Agreement

The CEP agreement provides a new incentive to attract and invest New Zealand companies in Hong Kong and provides valuable expertise and experience. Hong Kong Chief Executive Donald Tsang said a resource-rich New Zealand could use Hong Kong as an intermediary or springboard for New Zealand`s businesses, services and technologies to mainland China. [6] The agreement has a greater benefit to Hong Kong companies, which exported $203 million worth of goods to New Zealand in 2009, of which 47 per cent claimed tariffs. [7] Hong Kong`s annual customs economy is estimated at HK 7 million based on average merchandise trade figures between 2006 and 2008. For most products, it is not necessary for products originating in NZ under this agreement to be accompanied by a certificate of origin issued by a certification body. The New Zealand-Malaysia Free Trade Agreement (MNZFTA) was signed on 26 October 2009 in Kuala Lumpur and came into force on 1 August 2010. Malaysia is also a party to the ASEAN-Australia Free Trade Agreement (AANZFTA). Distributors should consider the agreement that is most beneficial to their imported/exported products. The Closer Economic Partnership Agreement between Hong Kong and New Zealand is a bilateral free trade agreement signed in March 2010 between the Hong Kong Special Administrative Region and New Zealand. This is the first bilateral free trade agreement on goods and services signed by the Hong Kong SAR with a foreign country.

[1] The Hong Kong-New Zealand EPA complements the New Zealand Free Trade Agreement (FTA) with China two years earlier and expands the potential of Hong Kong`s use as a trading platform with mainland China. Hong Kong is a special administrative region of China, but it has trade autonomy. For bilateral trade alone, Hong Kong is New Zealand`s 9th largest export destination and costs about $820 million a year. A CEP with Hong Kong contributes to the expansion of bilateral trade and economic relations between NZ and HK. This, in turn, will contribute to the NZ`s economic development goals. NZ`s exports to HK have increased significantly in recent years. Between June 2009, merchandise exports to Hong Kong increased by 33.6%. Since HK is an economy that already grants duty-free access to all imports, the CEP NZ agreement does not offer the usual benefits of reduced duties. However, by limiting duty-free access to the Hong Kong market and providing mechanisms to deal with other trade restrictions, it provides greater security in access to the Hong Kong market. The CEP agreement with Hong Kong provides NZ exporters with safer and safer access to the HK trade market in areas of central interest to New Zealand, including private education, business services, environmental services and logistics.