Taiwan and New Zealand concluded an economic cooperation agreement July 10, a significant step forward in Taiwan’s bid for greater participation in regional economic integration, according to the ROC Ministry of Foreign Affairs.
The Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC)—signed in Wellington by ROC Representative to New Zealand Elliot Y.L. Charng and his New Zealand counterpart Stephen Payton—is Taiwan’s first free trade pact with a developed economy.
“This landmark agreement will help cement bilateral trade ties, promote industrial collaboration and advance the well-being of people in both countries,” MOFA Minister David Y.L. Lin said.
“It 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.”
Echoing Lin’s remarks, Payton described the inking of the ANZTEC as a major achievement for both nations. “It fully reflects the commitment of both sides to free and open trade and investment,” he said, strongly urging businesses in both markets to take advantage of opportunities set to be created by the agreement.
Comprising 25 chapters, including customs cooperation, dispute settlement, e-commerce, investment, labor, technical trade barriers and intellectual property, the ANZTEC also includes innovative provisions spanning collaboration on indigenous issues, and film and TV production.
Under the agreement, tariffs will be removed immediately on 95.2 percent of imports from New Zealand, while those on the remaining items, excluding rice, will be cut to zero over a period of 12 years.
Tariffs on all Taiwan exports to New Zealand will be eliminated as soon as the ANZTEC takes force, except those on 29 industrial products set to be reduced to zero over a four-year period.
Minister of Economic Affairs Chang Chia-juch said the ANZTEC is a comprehensive and high-quality agreement fitting strategically with Taiwan’s policies of pursuing greater liberalization.
“Given the highly complementary nature of the two countries’ economic structures, the pact will spur more growth opportunities for firms on both sides.”
Taiwan’s main exports comprise electronic components and parts, machinery and petrochemicals, while New Zealand mainly sends abroad dairy products, fruit and lamb.
Citing a Ministry of Economic Affairs-commissioned study, Chang said the ANZTEC will increase Taiwan’s gross domestic product by 0.076 percent a year, or US$303 million, and create 6,250 jobs.
Annual output of the local manufacturing and services industries will gain NT$30 billion and NT$9 billion, respectively, he added.
Although the ANZTEC is expected to impact Taiwan’s farmers in the form of a sectorwide drop of NT$3.5 billion in production, the Council of Agriculture believes the pact’s plusses outweigh any possible minuses.
“The agreement will lower the cost of exports from New Zealand and prompt other economies to consider concluding similar deals with Taiwan to help their products remain competitive,” Deputy COA Minister Hu Sing-hwa said.
The ANZTEC is being fast-tracked for legislative review and will take force following Taipei and Wellington’s completion of respective administrative procedures, Chang said.
According to the latest ROC government statistics, trade between Taiwan and New Zealand hit US$1.21 billion in 2012, up 4.21 percent from the year before. New Zealand enjoys a trade surplus of US$168 million with Taiwan. (SFC-JSM)
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