New Zealand free trade agreements
Encyclopedia
New Zealand is party to several free trade agreements (FTAs) worldwide.
which is greatly dependent on international trade, mainly with Australia, the United States of America, China and Japan. It is strongly dependent on tourism and agricultural exports, and has only small manufacturing and high-tech components. Economic free-market reforms of the last decades have removed many barriers to foreign investment, and the World Bank
has praised New Zealand as being the most business-friendly country in the world.
Regional and bilateral free trade agreements have become an important part of New Zealand's international trade policy. New Zealand has used free trade agreements also known as closer economic partnerships to liberalise
trade between economies
. A Closer Economic Partnership Agreement with Thailand
was negotiated in 2004 and implemented in 2005. Negotiations for a Free Trade Agreement with Chile
, Brunei
and Singapore
known as the Trans-Pacific Strategic Economic Partnership
were concluded in 2005. Negotiations for further agreements with Malaysia were undertaken in 2006, but failed to reach a conclusion. The historic FTA with China was signed in Beijing in April 2008.
On 27 February 2009 New Zealand and its close partner Australia signed a Free Trade Agreement with the ASEAN regional block of 10 countries it is estimated that an FTA with ASEAN would boost aggregate GDP across the 12 countries by more than US$48 billion over the period 2000-2020 with an additional US$3.4 billion to New Zealand alone.
are to be seen.: Closer Economic Relations
(1983): New Zealand China Free Trade Agreement
(2008): New Zealand and Thailand Closer Economic Partnership (2005): New Zealand and Singapore Closer Economic Partnership (2001): Trans-Pacific Strategic Economic Partnership
(2005): Trans-Pacific Strategic Economic Partnership
(2005): Trans-Pacific Strategic Economic Partnership
(2005) - Auxiliary to New Zealand and Singapore Closer Economic Partnership
and multilateral
free trade agreements with the following countries and blocs
:
}: New Zealand-United States Free Trade Agreement
}: Negotiating alongside the United States, Australia and Vietnam to join the Trans-Pacific Strategic Economic Partnership
India–New Zealand Free Trade Agreement - negotiating since 2007 with the establishment of a JSG (Joint Study Group) looking at the feasibility of an Indian-NZ FTA.
Russia-Kazakhstan-Belarus Free Trade Agreement - negotiating since 2010
Russia-Kazakhstan-Belarus New Zealand Free Trade Agreement - negotiating since 2010
Russia-Kazakhstan-Belarus Free Trade Agreement - negotiating since 2010
History
The Economy of New Zealand is a market economyMarket economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
which is greatly dependent on international trade, mainly with Australia, the United States of America, China and Japan. It is strongly dependent on tourism and agricultural exports, and has only small manufacturing and high-tech components. Economic free-market reforms of the last decades have removed many barriers to foreign investment, and the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
has praised New Zealand as being the most business-friendly country in the world.
Regional and bilateral free trade agreements have become an important part of New Zealand's international trade policy. New Zealand has used free trade agreements also known as closer economic partnerships to liberalise
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...
trade between economies
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
. A Closer Economic Partnership Agreement with Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
was negotiated in 2004 and implemented in 2005. Negotiations for a Free Trade Agreement with Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, Brunei
Brunei
Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
known as the Trans-Pacific Strategic Economic Partnership
Trans-Pacific Strategic Economic Partnership
The Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...
were concluded in 2005. Negotiations for further agreements with Malaysia were undertaken in 2006, but failed to reach a conclusion. The historic FTA with China was signed in Beijing in April 2008.
On 27 February 2009 New Zealand and its close partner Australia signed a Free Trade Agreement with the ASEAN regional block of 10 countries it is estimated that an FTA with ASEAN would boost aggregate GDP across the 12 countries by more than US$48 billion over the period 2000-2020 with an additional US$3.4 billion to New Zealand alone.
Free Trade Agreements in force
Here is a list of free trade agreements of which New Zealand is part. In parentheses, the abbreviation, if applicable, membership if not stated before, and the date of coming into forceComing into force
Coming into force or entry into force refers to the process by which legislation, regulations, treaties and other legal instruments come to have legal force and effect...
are to be seen.: Closer Economic Relations
Closer Economic Relations
Closer Economic Relations is a free trade agreement between the governments of New Zealand and Australia. It is also known as the Australia New Zealand Closer Economic Relations Trade Agreement and sometimes shortened to...
(1983): New Zealand China Free Trade Agreement
New Zealand China Free Trade Agreement
The New Zealand – China Free Trade Agreement is a bilateral free trade agreement signed between the People's Republic of China and New Zealand in April 2008. It is the first free trade agreement that China has signed with any developed country, and New Zealand's largest trade deal since the...
(2008): New Zealand and Thailand Closer Economic Partnership (2005): New Zealand and Singapore Closer Economic Partnership (2001): Trans-Pacific Strategic Economic Partnership
Trans-Pacific Strategic Economic Partnership
The Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...
(2005): Trans-Pacific Strategic Economic Partnership
Trans-Pacific Strategic Economic Partnership
The Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...
(2005): Trans-Pacific Strategic Economic Partnership
Trans-Pacific Strategic Economic Partnership
The Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...
(2005) - Auxiliary to New Zealand and Singapore Closer Economic Partnership
- Association of Southeast Asian NationsAssociation of Southeast Asian NationsThe Association of Southeast Asian Nations, commonly abbreviated ASEAN rarely ), is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has...
: - negotiating along with Australia since (2004): New Zealand - Malaysia Free Trade Agreement announced on 2 June 2009
- Hong Kong-New Zealand Closer Economic Partnership (2011) (negotiating since 2001)
Proposed Free Trade Agreements
New Zealand is negotiating bilateralBilateralism
Bilateralism consists of the political, economic, or cultural relations between two sovereign states. For example, free trade agreements signed by two states are examples of bilateral treaties. It is in contrast to unilateralism or multilateralism, which refers to the conduct of diplomacy by a...
and multilateral
Multilateralism
Multilateralism is a term in international relations that refers to multiple countries working in concert on a given issue.International organizations, such as the United Nations and the World Trade Organization are multilateral in nature...
free trade agreements with the following countries and blocs
Trade bloc
A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, are reduced or eliminated among the participating states.-Description:...
:
- The Trans-Pacific Strategic Economic PartnershipTrans-Pacific Strategic Economic PartnershipThe Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...
, a multilateral trade agreement involving 4 countries with which New Zealand has existing trade agreements - Malaysia, BruneiBruneiBrunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...
, ChileChileChile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, SingaporeSingaporeSingapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, and AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
- and nations with which New Zealand does not have an existing FTA:
}: New Zealand-United States Free Trade Agreement
}: Negotiating alongside the United States, Australia and Vietnam to join the Trans-Pacific Strategic Economic Partnership
Trans-Pacific Strategic Economic Partnership
The Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...
-
-
Vietnam: Negotiating alongside the United States, Australia and Peru to join the Trans-Pacific Strategic Economic PartnershipTrans-Pacific Strategic Economic PartnershipThe Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...
: Conducting feasibility study as of (14 May 2008)
-
- New Zealand-South Korea Free Trade Agreement
- (2006/07)
India–New Zealand Free Trade Agreement - negotiating since 2007 with the establishment of a JSG (Joint Study Group) looking at the feasibility of an Indian-NZ FTA.
Russia-Kazakhstan-Belarus Free Trade Agreement - negotiating since 2010
Russia-Kazakhstan-Belarus New Zealand Free Trade Agreement - negotiating since 2010
Russia-Kazakhstan-Belarus Free Trade Agreement - negotiating since 2010
External links
- New Zealand Ministry of Foreign Affairs and Trade - Official site
- Ministry of Economic Development New Zealand - Official site