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New Zealand - China Free Trade Agreement
Opportunities for NZ Securities Trusts Clients
Exciting new business opportunities exist for NZ Securities Trusts’
clients by taking advantages provided by the introduction of this
FTA. Opportunities exist for New Zealand resident clients as well
as clients based offshore from New Zealand. New Zealand clients
have direct access into China from 1 October 2008. They will require
appropriate structures for trading to provide the maximum trading
and tax advantages. Offshore clients will have advantages available
to use this FTA by either linking with existing New Zealand businesses,
in business structures such as Limited Partnerships, New Zealand
Foreign Trusts and Companies, or alternatively commencing, or purchasing
a wholly owned New Zealand subsidiary, which could enable them to
qualify to export to China using the advantageous reduced tariffs
and the access provisions. Clients will need to study the relevant
Articles in the Rules of Origin and Operational procedures (in the
following paragraphs and in the Agreement itself) to enable them
to see the specific opportunities. Please contact Garth Melville
for specific enquiries at info@nzsecurities.com
Introduction
This Free Trade Agreement signed on the 7th of April 2008 in Beijing,
is an amazing development in the relationship between China and
New Zealand. New Zealand is the first OECD country to sign a comprehensive
FTA with China. This development has come from bilateral economic
and trade relationship since the establishment of diplomatic relations
in 1972;
Subject to completion of parliamentary processes the FTA is expected
to enter into force on 1 October 2008
This Free Trade Agreement is a treaty between New Zealand and
China that liberalises and facilitates trade in goods and services
and investment, and promotes cooperation between the two countries
in a wide range of economic areas.
The full Agreement and details are available on www.chinafta.govt.nz.
This section of the website provides further information on the
Agreement. It includes a summary of the key outcomes, provides the
full text of the NZ-China FTA, as well as additional publications
and resources associated with the Agreement.
This section of the website provides further information on the
Agreement. It includes a summary of the key outcomes, provides the
full text of the NZ-China FTA, as well as additional publications
and resources associated with the Agreement.
Key Outcomes
The Key Outcomes are: Liberalised trade in goods and services,
Movement of People and Facilitation of Investment. Measures to improve
the business environment and reduce the barriers of business between
the two jurisdictions include customs procedures, sanitary and phytosanitary
procedures, technical barriers to trade, and intellectual property
The Rules to Govern Trade
This FTA contains the Rules of Origin and also rules to counter
unfair trade or unexpected surges in imported products from the
other jurisdiction. Clients are recommended to carefully review
the website Chapter 4 - Rules of Origin and Operational procedures
to determine their opportunities Articles 17 to 32 inclusive. These
Articles range from Preferential Tariff Treatment, to Regional Value
Content (which provides the formula for acceptable volume of non-originating
content of goods when these are included together with regional
value content of goods). Many other rules are also included in this
Rules of Origin section.
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