The Republic of China (Taiwan) is keen to foster commercial ties with New Zealand and is hopeful of completing negotiations for an Economic Cooperation Agreement (ECA) or Free Trade Agreement (FTA) by the end of this year, according to high-level officials in Taipei.
Addressing a delegation of international journalists visiting the country, Cynthia Kiang, Deputy Director General of the Bureau of Trade attached to the Ministry of Economic Affairs, said that New Zealand was a priority for the ROC.
“We are keen to conclude a cooperation agreement with New Zealand and our officials have been in talks with the Government in Wellington. Both countries need each other’s products and services and hence we are hopeful of concluding a pact this year,” she told the delegation at her office in the Taiwanese capital on May 22.
New Zealand Trade Ministry officials said that although the country does not recognise the ROC as a sovereign nation (apparently not to annoy Mainland China, with who two-trade is now $10 billion, slated to double by 2020) but acknowledged the growing importance of that country.
Benefits identified
In May 2012, the New Zealand Commerce and Industry Office and the Taipei Economic and Cultural Office commenced negotiations on an ECA. The start of negotiations followed individual and joint feasibility studies that identified benefits to both economies from such a pact.
“The absence of political or diplomatic links does not stand in the way of a vibrant trading, economic and cultural relationship. Taiwan is a key export market, an important source of imports, a significant tourism market and a source of investment. There is a large Taiwanese community in New Zealand and the New Zealand community in Taiwan is growing. Cultural links between the aboriginal people of Taiwan and Maori are also growing,” a Ministry communication said.
Important partner
Trade between the two countries stands at about $1.63 billion.
As at the end of June 2012, New Zealand’s exports to Taiwan, mainly Dairy, Meat, Fruits and Nuts, Wood and Wood items and Preparations of Cereals were valued at $804 million, while imports (Mineral fuels, Electrical machinery, Machinery, Iron and Steel, and Plastics) were valued at $823 million.
Taiwan represents New Zealand’s 12th largest market for exports and 15th largest for imports and the two-way trade is growing.
Both countries share common platforms of the World Trade Organisation (WTO) and the Asia-Pacific Economic Cooperation (APEC) as members. Taiwan also participates in the Steel, Competitive Policy and Trade Committees of OECD.
There are annual economic consultations between agencies responsible for trade and economic matters.
Growing tourism
Tourism is also growing between the two countries. A three-month visa waiver, available in either country has seen a surge in the number of tourist arrivals.
However, Wellington believes that there are a number of barriers to trade that are of concern to New Zealand exporters. Trade access issues form a major part of the work of the New Zealand Commerce and Industry Office in Taipei.
