Minister welcomes NZCIO/TECO joint press release

Minister of Trade Hon Tim Groser today welcomed the announcement that agreement had been reached between the New Zealand Commerce and Industry Office in Taipei and the Taipei Economic and Cultural Office in Wellington to explore the feasibility of an economic cooperation agreement between New Zealand and Chinese Taipei.*

“Chinese Taipei is an important trading partner for New Zealand and even after its WTO accession maintains a number of high barriers to our exports” Tim Groser said.

“New Zealand follows a “one China” policy. New Zealand signed a FTA with China in 2008 and a Closer Economic Partnership with Hong Kong in 2010. The FTA with China has been spectacularly successful.”

“I am hopeful that any eventual economic cooperation agreement with Chinese Taipei will also see substantial growth in exports to this important economy. It is not just important for our goods exporters. It is an important source of tourists, students and investment”, Tim Groser said.

“We are highly complementary economies. I am confident that the proposed independent studies will demonstrate that an agreement will benefit both economies,” Tim Groser said.

“The negotiation of the Economic Framework Cooperation Agreement (ECFA), plus the opening of direct air and shipping links across the Taiwan Strait have accelerated economic integration in this area. An economic agreement between Chinese Taipei and New Zealand coupled with our existing agreements with China and Hong Kong would assist New Zealand companies in becoming more closely involved in this exciting development,” Tim Groser concluded.

Notes:

* Chinese Taipei refers to “the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)”.

In the year ended December 2010 Chinese Taipei was New Zealand’s 8th largest goods export market with direct exports totally $897 million. Milk powder, frozen beef, butter, fresh fruit, sheep meat and cheese are New Zealand’s largest exports. Chinese Taipei’s major direct exports to New Zealand include: petroleum, stainless steel, bicycles, computers and telephone equipment. Imports to New Zealand from Chinese Taipei totalled $732 million in 2010.

Aside from its ongoing ECFA negotiation with the mainland, Chinese Taipei is currently negotiating an economic cooperation agreement with Singapore.

New Zealand follows a “one China” policy, under which the Government recognises the People’s Republic of China as the sole legal government of China. In adopting the policy in 1972, New Zealand agreed to cease “official” dealings with the Republic of China authorities in Taipei. There was agreement, however, that New Zealand would continue to maintain economic and cultural ties. To facilitate contact in the absence of formal Government-to-Government relations, non-government offices were established in Taipei and Wellington. In Taipei, the New Zealand Commerce and Industry Office represents a range of New Zealand interests. The NZCIO is owned by a private company owned by the Wellington Employers Chamber of Commerce.