Taiwan Agreement a positive step towards regional economic integration

The New Zealand International Business Forum (NZIBF) has told Parliament that it warmly welcomes and supports the Government’s intention to conclude an economic cooperation agreement (ANZTEC) with Taiwan.

The support was confirmed in NZIBF’s submission to the Foreign Affairs, Defence and Trade Select Committee, made by Executive Director, Stephen Jacobi

“The ANZTEC agreement is high quality, ambitious and comprehensive. It’s the first of its kind between Taiwan and an OECD economy, and we welcome the opportunity this agreement provides to expand trade and investment linkages with Taiwan,” said Mr Jacobi.

“The economic benefits to New Zealand are considerable. The comprehensive tariff elimination and other improvements to the rules governing trade and investment between the parties will lead to improved returns for business and lower costs and more product choice for consumers.”

By the end of the first four years 98.7% of current exports to Chinese Taipei will be duty free. New Zealand could expect to generate increases in merchandise exports in excess of $100 million.

On entry into force tariffs on 44% or $432.5 million of New Zealand’s current exports to Chinese Taipei will be eliminated, with an estimated duty saving to New Zealand exporters of $40.3 million.

“The agreement is also innovative in its treatment of labour, environment and indigenous issues. It will create new opportunities for New Zealand in the education services sector and facilitate a growing investment relationship,” said Mr Jacobi.

The agreement is an important move towards greater regional economic integration. ANZTEC represents another step forward towards regional consensus on the benefits of trade and investment liberalisation, taking the region a step closer to our ideal of a Free Trade Area of the Asia Pacific.”

The NZIBF concurred with the conclusions of the agreement’s positive impact on New Zealand’s economic interests described in the National Interest Analysis and recommended the agreement’s early ratification and entry into force.