The New Zealand-Taiwan Free Trade Agreement: What It Means for Both Countries
The New Zealand-Taiwan Free Trade Agreement (FTA) was signed in July 2013, and came into effect on December 1st, 2013. This agreement was significant for both countries because it marked a milestone in their bilateral relationship, and also because it opened up a range of new opportunities for trade and investment.
New Zealand and Taiwan are countries that share many similarities, including their commitment to liberal democracy, market-oriented economies, and open trade policies. Both countries also have highly skilled workforces and a strong focus on innovation and technology. These similarities make them ideal partners for developing new trade and investment relationships.
The FTA between New Zealand and Taiwan is a comprehensive agreement that covers a wide range of sectors, including agriculture, manufacturing, services, and investment. The agreement eliminates tariffs and other barriers to trade, opens up new opportunities for investment, and provides a framework for cooperation and collaboration in areas such as intellectual property, science and technology, and sustainable development.
For New Zealand, the FTA with Taiwan has opened up new opportunities for its exporters, particularly in the agricultural sector. Prior to the FTA, New Zealand`s exports to Taiwan were subject to high tariffs and other barriers, which made it difficult for many New Zealand companies to compete in this market. However, with the elimination of these barriers, New Zealand exporters now have better access to Taiwan`s 23 million consumers, who have a strong appetite for high-quality agricultural products.
For Taiwan, the FTA with New Zealand provides an opportunity to diversify its trade relationships and reduce its dependence on China. Taiwan and China have a complex relationship, with Taiwan considering itself an independent sovereign state, while China regards Taiwan as a renegade province that must eventually be brought back into the fold. As a result, Taiwan has been seeking to develop new trade and investment relationships outside of China, and the FTA with New Zealand is an important step in this process.
Overall, the New Zealand-Taiwan Free Trade Agreement is a win-win for both countries. It provides new opportunities for trade and investment, strengthens their bilateral relationship, and helps to promote economic growth and development. As both countries continue to work together, they will undoubtedly find new ways to build on the success of this agreement, and to create even more opportunities for their people and businesses.