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Signing of FTA could offer new opportunity

By Jiang Wei (China Daily)
Updated: 2008-04-24 09:43

Moon said that because its factory imports thousand of tons of wool from New Zealand every year, his company would benefit from the FTA.

"New Zealand will be given an additional 25,000 tons quota for wool import plus the global allocation to the country," he said. "It makes our supply chain more secure."

On the other hand, the factory in Shanghai exports at least 15 percent its products back to the company's home market. New Zealand's garment tariff - currently 18 percent - would be lowered to 15 percent in July, 10 percent next July and would be scrapped altogether in five years.

Simon Myers, director of operations with AuCom Electronics Ltd, a soft start motor control technology product maker, said his firm would also benefit from the FTA. He believed AuCom would acquire a larger market share in China as tariffs diminish from the current 10 percent to zero by 2012.

New Zealand trade minister Goff said the FTA's impact would extend beyond trade to enhance exchanges in tourism, education and investment.

The New Zealand government has initiated a "beachhead" program providing investors with information about the Chinese market to help New Zealand firms, most of which are comparatively small, tap the Chinese market.

China's FTA with the island country is also expected to set an example for other trade partners.

New Zealand's close ties with Australia could increase pressure on Canberra to conclude a deal, experts said. Australia's negotiations with Beijing have not made headway after 10 rounds of talks.

"If Australia can't strike an agreement with China as soon as possible, some of its business with China may go to New Zealand," said Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

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