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(Jul 18, 2013) On July 10, 2013, the Republic of China (on Taiwan, ROC) and New Zealand concluded the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC). It is Taiwan's first free trade pact with a developed economy and, according to the ROC Ministry of Foreign Affairs (MOFA), represents a major forward in Taiwan's efforts to participate in regional economic integration. (Taiwan, New Zealand Ink ANZTEC Agreement, TAIWAN TODAY (July 10, 2013).)
New Zealand is the only country in the world to have forged free trade agreements (FTA) with China, Hong Kong, and Taiwan, and it is the first
Aside from cementing bilateral trade ties and promoting industrial collaboration between the two parties, MOFA Minister David Y.L. Lin noted that the ANZTEC "will also encourage more nations to conclude similar agreements with Taiwan, and help fast-track the country's participation in regional trade blocs such as the Trans-Pacific Partnership and Regional Comprehensive Economic Partnership." (Taiwan, New Zealand Ink ANZTEC Agreement, supra.) Stephen Payton, Director of the New Zealand Commerce and Industry Office in
In addition to investment, the 25 chapters of the ANZTEC cover such areas as air transport services, competition, customs cooperation, dispute settlement, e-commerce, government procurement, intellectual property, labor, and technical trade barriers. (
There are eight Annexes to the ANZTEC, the first of which concerns the tariff schedules of each party. The Agreement provides for immediate elimination of tariffs on 95.2% of products imported to Taiwan from New Zealand; the remainder, except for rice, will be reduced to zero over a 12-year period. On the New Zealand side, tariffs on all Taiwan imports will be removed as soon as the Agreement enters into force, except for those on 29 industrial goods; those tariff rates will become zero over a four-year period. (
In addition to the elimination of tariffs and collaboration in the arts and on indigenous issues, other highlights of the ANZTEC are:
- greater market access for services, committing both sides to a broader scope of access than the commitments each side has made under the current WTO framework, e.g., further liberalization by New Zealand of its engineering, environmental, landscaping, research and development, and urban planning services;
- more government procurement opportunities for Taiwan, widening a heretofore limited NZ government procurement market for Taiwan suppliers because New Zealand is not currently a party to the WTO Government Procurement Agreement;
- more flexible air transport services through the incorporation of an "open skies" air transport agreement to facilitate both sides' airline operations; and
- higher environmental awareness, through ANZTEC's adoption of international concepts that include adherence to environmental policies in trade, with both governments defining the scope of "environmental goods" to promote their trade and use, and inclusion in an Annex of an environmental goods list. (Press Release, Ministry of Economic Affairs, MOEA Affirms the Signing of ANZTEC (Agreement Between New Zealand and Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation) (July 10, 2013).)
|Author:||Wendy Zeldin More by this author|
|Topic:||International affairs More on this topic|
|Foreign trade and international finance More on this topic|
|Jurisdiction:||New Zealand More about this jurisdiction|
|Taiwan More about this jurisdiction|
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Last updated: 07/18/2013