Rt Hon Helen Clark's address to the NZ-China FTA celebration function. Banquet Hall, Beehive, Wellington

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Ministers and fellow Members of Parliament
Representative of the Peoples’ Republic of China, Counsellor Zhao Yanbo
Members of the Diplomatic Corps
Asia New Zealand Foundation Chairman Philip Burdon
Ladies and gentlemen.

Ni men hao.

It is just over a week ago that Ministers Phil Goff, Chris Carter, and I, together with a large delegation of New Zealand business people, officials and media were in the Great Hall of the People in Beijing to witness the signing of the Free Trade Agreement between New Zealand and China.

This is such an important milestone in the development of New Zealand’s relationship with China that we thought it important also to mark it here in New Zealand with special events.

The Free Trade Agreement which New Zealand and China have signed is the outcome of nearly four years of hard work. There was one year of study, and then nearly three years of negotiations spread over fifteen rounds. This has culminated in the first free trade agreement signed between a developed country and the People’s Republic of China.

The agreement builds on the three previous firsts New Zealand had achieved with China. We were :

• the first country to conclude a bilateral agreement with China for its accession to the WTO, 
• the first country to recognise China as a market economy, and
• the first developed country to commence FTA negotiations with China.

When Premier Wen Jiabao visited New Zealand in 2006, we agreed that our negotiators should seek an FTA which was high quality, comprehensive, balanced, and delivered mutually beneficial results. I’m pleased to report that those objectives have been met. We have an agreement of substance which reduces and/or removes barriers to trade in goods and services and to investment. We have also concluded binding instruments for co-operation in the important areas of labour and the environment.

The Agreement is a win for both countries, and helps us build on what is already a dynamic economic relationship. China is now our fourth largest export market and our third biggest trading partner.

As a treaty signed by two sovereign nations, the FTA has now been tabled in Parliament for scrutiny. The Foreign Affairs, Defence, and Trade Select Committee will consider it and report back to the House. The Select Committee has called for submissions so that the agreement can be analysed and discussed. I believe this process will confirm that the FTA is of real benefit to New Zealand.

Thereafter Parliament will be asked to approve legislation to enable the FTA to come into force. It’s important that we achieve this in the coming months, so that the first tariff cuts on a wide range of New Zealand’s exports to China can be in place before the end of 2008.

There will be significant benefits to New Zealand in the early years of the FTA. Overall we anticipate increased returns to New Zealand from our exports to China of between US$180 million and US$280 million per year.

This agreement is the product of hard work on the part of New Zealand’s negotiators. I thank especially lead negotiator David Walker and the officials from many agencies who contributed to this process. David is still overseas, but there are a number of other officials who took part in the negotiations here with us tonight.

While the FTA negotiations were necessarily conducted and concluded at government level, there was regular consultation with stakeholders. As we move to the next phase – that of implementing the FTA - a partnership with the private sector is vital if we are to maximise the opportunities.

The signs are good. There was a record turnout of New Zealand companies and business organisations in Beijing last week. They ranged from major corporates like Fonterra, New Zealand Steel, Air New Zealand, and Zespri, to leaders in creative industries such as Wellington’s Weta Workshop, to many dynamic small and medium sized enterprises. I was also delighted to see many representatives of the New Zealand Chinese business community in Beijing. I thank all who came for their support.

There have been many positive comments over this past week from business organisations, individual companies, and other groups about the opportunities the agreement provides New Zealand. The news media have given generous coverage.

We now need to ensure that the FTA meets expectations. Our government is committed to supporting its implementation. Many of you will have already checked out the dedicated website which went live at the time of signing. A road show will get underway in the five main centres from late May, to engage with the business community.

NZ Trade and Enterprise has a long term programme of working with the private sector to build capability for doing business with China. We’ll also be working hard with the Chinese government to make the FTA work well in practice. Our posts in Beijing, Shanghai, and Guangzhou will be active in promoting the FTA to government and business on the ground in China.

But ultimately the success of the FTA will depend on how vigorously the New Zealand business community pursues the opportunities it offers.

Our current relationship with China is the culmination of over 35 years of diplomatic engagement. The FTA is another major strand to this broad relationship, which already spans extensive trade links, sister city links, tourism, and migration. The FTA is a reminder that two countries, so different on so many levels, not least in size, can forge common ground and work together for positive results.

I would like now to propose a toast to the New Zealand-China relationship. With our combined efforts, we will make this FTA work for both countries.