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

NZIBF’s Executive Director, Stephen Jacobi, told the Foreign Affairs, Defence and Trade Select Committee, that the ANZTEC agreement is high quality, ambitious and comprehensive. He was enthusiastic about the fact that it’s the first of its kind between Taiwan and an OECD economy.

He pointed out that the agreement provides a wonderful opportunity to expand trade and investment linkages with Taiwan, noting that the economic benefits to New Zealand are considerable. The comprehensive tariff elimination and other improvements to the rules governing trade and investment 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 Taiwan 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 Taiwan 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.

The NZIBF recommended the agreement’s early ratification and entry into force.