Taiwan Inked Economic Cooperation Pack with New Zealand in July 2013.

Taiwan and New Zealand signed an economic cooperation agreement on July 10, 2013 (the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation, “ANZTEC”), which carries special significance for Taiwan and also opens a new chapter in trade relations between the two countries. 

According to the MOEA, the bilateral trade between Taiwan and New Zealand approximately amounts to USD1.207 billion and Taiwan ranks No. 12 among New Zealand’s export markets and import suppliers, respectively.  As indicated in the feasibility studies conducted by both countries, the ANZTEC will expand both sides’ export market and consumer benefits.  Given the complementary nature of the economic ties of the two countries, the ANZTEC is expected to be beneficial to Taiwan’s total output and employment.

The ANZTEC consists of 25 chapters covering an extensive range of issues, such as trade in goods, rules of origin, customs procedures and cooperation, cross border trade in services, investment, governmental procurement, dispute settlement, technical barriers in trade, sanitary and phytosanitary measures, electronic commerce, competition, intellectual property, institutional provisions, general provisions (preamble, definitions, general exceptions, and transparency), labor, environment, indigenous issues, and film and TV co-production. 

The ANZTEC is a comprehensive market liberalization agreement. Its benefits Taiwan in the following aspects. 

1.　Tarriff elimination – For trade in goods, Taiwan will liberalize 99.88% of its tariff lines (excluding rice), while New Zealand will liberalize 100%.  Taiwan’s main export to New Zealand is industrial product, 99.61% of which will enjoy immediate tariff elimination upon ANZTEC’s entry into force.  This is highly beneficial for Taiwan’s industrial producers.

2.　Greater services market access – For trade in services and investment, the ANZTEC commits Taiwan and New Zealand to a greater scope of market access than that made under the current WTO framework.  For example, New Zealand will further liberalize its engineering, urban planning, landscaping, research and development (R&D), and environmental services when the ANZTEC enters into effect.

3.　More government procurement opportunities – Because New Zealand is not currently a party to the WTO Government Procurement Agreement (GPA), the New Zealand government procurement market has been limited for Taiwanese suppliers.  The ANZTEC opens New Zealand’s government procurement markets for the first time, thereby benefiting Taiwan suppliers.

4.　More air transport services – The ANZTEC incorporates an “open skies” air transport agreement that will facilitate both sides’ airline operations and further reinforce the trade ties and tourism and cultural interactions between Taiwan and New Zealand.

5.　Environmental awareness – The ANZTEC also includes highly progressive international concepts that emphasize adherence to environment policies in trade.  Both governments are also actively defining the scope of “environmental goods” to promote their trade and usage.

6.　Collaboration on indigenous issues and arts – Protection of indigenous rights and collaboration and competitiveness in the arts are issues of great importance to Taiwan and New Zealand.  Thus, the ANZTEC includes provisions on indigenous issues and film and television co-production to strengthen collaboration between both sides in these industries.

New Zealand has an overall and integral economic and trade web in the Asia Pacific region, which is a result of its sustained efforts to participate in the regional economic integration beginning from 1990.  The conclusion of ANZTEC with New Zealand demonstrates Taiwan’s next steps of pursuing regional integration and connecting with Asia Pacific and global communities.  It also underscores Taiwan’s commitment to trade liberalization and readiness for seeking similar deals with other trading partners or participating in regional economic integration.  (July 2013)
/CCS