New Zealand
Free trade agreements in force
FTA concluded but not in force
New Zealand is party to several free trade agreements (FTAs) worldwide.
New Zealand is party to several free trade agreements (FTAs) worldwide.
The Economy of New Zealand is a market economy which is greatly dependent on international trade, mainly with Australia, the United States of America, China and Japan. It is strongly dependent on tourism and agricultural exports, and has only small manufacturing and high-tech components. Economic free market reforms of the last decades have removed many barriers to foreign investment, and the World Bank has praised New Zealand as being the most business-friendly country in the world. [1] Regional and bilateral free trade agreements have become an important part of New Zealand's international trade policy. New Zealand has used free trade agreements also known as closer economic partnerships to liberalise trade between economies. A Closer Economic Partnership Agreement with Thailand was negotiated in 2004 and implemented in 2005. Negotiations for a Free Trade Agreement with Chile, Brunei and Singapore known as the Trans-Pacific Strategic Economic Partnership were concluded in 2005. Negotiations for further agreements with Malaysia were undertaken in 2006, but failed to reach a conclusion. The historic FTA with China was signed in Beijing in April 2008. [2]
On 27 February 2009 New Zealand and its close partner Australia signed a Free Trade Agreement with the ASEAN regional block of 10 countries. It is estimated that an FTA with ASEAN would boost aggregate GDP across the 12 countries by more than US$48 billion over the period 2000–2020 with an additional US$3.4 billion to New Zealand alone. [3] [4]
Here is a list of free trade agreements of which New Zealand is part. In parentheses, the abbreviation, if applicable, membership if not stated before, and the date of coming into force are to be seen.
Australia : Closer Economic Relations (1983) [5] 
China : New Zealand–China Free Trade Agreement (2008) [6] 
European Union : New Zealand-European Union Free Trade Agreement (2022, to be brought into force by end of 2024) [7] 
Hong Kong : New Zealand–Hong Kong, China Closer Economic Partnership (2011) [8] [9] 
Malaysia : Malaysia–New Zealand Free Trade Agreement announced on 2 June 2009 [10] [11] 
Singapore : New Zealand and Singapore Closer Economic Partnership (2001) [12] 
South Korea : NZ-Korea Free Trade Agreement (2015) [13] 
Taiwan : Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (2013) [14] [15] 
Thailand : New Zealand and Thailand Closer Economic Partnership (2005) [16] 
United Kingdom : New Zealand–United Kingdom Free Trade Agreement (Signed in 2021, entered into force on 31 May 2023.) [17] [18] 
Association of Southeast Asian Nations: ASEAN Australia NZ FTA (2009) [20] New Zealand is negotiating bilateral and multilateral free trade agreements with the following blocs and countries:
: New Zealand - Pacific Alliance – negotiating since 2017 [23] 
Mercosur : New Zealand-Mercosur Free Trade Agreement – negotiating since 2010 [24] [25] [26] 
Gulf Cooperation Council : Negotiations began in 2007 and concluded in 2009 but the agreement is not yet in force [27] 
India India–New Zealand Free Trade Agreement – negotiating since 2007 with the establishment of a JSG (Joint Study Group) looking at the feasibility of an Indian-NZ FTA. [28] 
Russia Russia-Kazakhstan-Belarus Free Trade Agreement – negotiations began in 2010 [29] but are currently suspended [30] 
Kazakhstan Russia-Kazakhstan-Belarus New Zealand Free Trade Agreement – negotiations began in 2010 [29] but are currently suspended [30] 
Belarus Russia-Kazakhstan-Belarus Free Trade Agreement – negotiations began in 2010 [29] but are currently suspended [30] 
United States : New Zealand–United States Free Trade Agreement. [19] These negotiations resulted in the United States signing but not ratifying the now-defunct Trans-Pacific Partnership.
Peru : Negotiated alongside the United States, Australia and Vietnam to join the Trans-Pacific Strategic Economic Partnership. [31] [32] Became part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Vietnam : Negotiated alongside the United States, Australia and Peru to join the Trans-Pacific Strategic Economic Partnership. [31] Became part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Japan : Conducting feasibility study as of (14 May 2008). [33] Superseded as Japan joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Singapore maintains diplomatic relations with 189 UN member states. The three exceptions are the Central African Republic, Monaco and South Sudan.
Asia-Pacific Economic Cooperation is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of ASEAN's series of post-ministerial conferences launched in the mid-1980s, APEC started in 1989, in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world; it aimed to establish new markets for agricultural products and raw materials beyond Europe. Headquartered in Singapore, APEC is recognized as one of the highest-level multilateral blocs and oldest forums in the Asia-Pacific region, and exerts significant global influence.
The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and international allies. It stands as one of the largest and most important free trade areas (FTA) in the world, and together with its network of dialogue partners, drove some of the world's largest multilateral forums and blocs, including Asia-Pacific Economic Cooperation, East Asia Summit and Regional Comprehensive Economic Partnership.
The Trans-Pacific Partnership (TPP), or Trans-Pacific Partnership Agreement (TPPA), was a proposed trade agreement between 12 Pacific Rim economies: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States. In the United States, the proposal was signed on 4 February 2016 but not ratified, being opposed by many Democrats and Republicans, including both major-party presidential nominees, Donald Trump and Hillary Clinton. After taking office, the newly elected President Donald Trump formally withdrew the United States from TPP in January 2017, therefore the TPP could not be ratified as required and did not enter into force. The remaining countries negotiated a new trade agreement called Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which incorporates most of the provisions of the TPP and which entered into force on 30 December 2018.
The East Asia Economic Caucus (EAEC) or East Asia Economic Group (EAEG) was a regional free trade zone (FTA) proposed in 1997 by Malaysian Prime Minister Mahathir Mohamad and encompasses most nations of East and Southeast Asia (ESEA). However, Japan at the time refused participation due to the exclusion of the United States, which at the time had tariffs on each other, has an economy too deeply interlinked through trade, and was still reeling from the effects of the Japanese asset price bubble. They also added that they were already members of the Asia-Pacific Economic Cooperation (APEC) and many other notable regional organizations in ESEA. South Korea was also extremely dissatisfied with the idea of placing Japan at the center of the proposed organization due to historical connotations.
The Second East Asia Summit was held in Mandaue, Metro Cebu, Philippines on January 15, 2007. The East Asia Summit (EAS) is a pan-Asia forum held annually by the leaders of 16 countries in the East Asian region. EAS meetings are held after annual ASEAN leaders' meetings.
The Economic Research Institute for ASEAN and East Asia or ERIA is an international organization established in Jakarta, Indonesia in 2008 by a formal agreement among Leaders of 16 countries in the East Asian region to conduct research activities and make policy recommendations for further economic integration in the East Asia. ERIA works very closely with both the ASEAN Secretariat and 16 Research Institutes to undertake and disseminate policy research under the three pillars, namely “Deepening Economic Integration”, ”Narrowing Development Gaps”, and “Sustainable Development” and provide analytical policy recommendations to Leaders and Ministers at their regional meetings. ERIA provides intellectual contributions to East Asian Community building and serves as a Sherpa international organization. ERIA Ranks 9th among the world's "Top International Economics Think Tanks" according to the 2020 Global Go To Think Tanks Index Report conducted by the University of Pennsylvania.
The New Zealand–China Free Trade Agreement is a bilateral free trade agreement signed between the People's Republic of China and New Zealand in April 2008. It is the first free trade agreement that China has signed with any developed country, and New Zealand's largest trade deal since the 1983 Closer Economic Relations agreement with Australia. The New Zealand-China FTA was signed on 7 April 2008 in Beijing, after negotiations that spanned fifteen rounds over three years. It entered into force on 1 October 2008, after ratification by the New Zealand Parliament. The provisions of the agreement are expected to be phased in gradually over 12 years, fully coming into force in 2019.
Malaysia–New Zealand relations refers to foreign relations between Malaysia and New Zealand. Malaysia has a High Commission in Wellington, and New Zealand has a High Commission in Kuala Lumpur. Both countries are full members of the Commonwealth of Nations and Malaysia is important to New Zealand for strategic, political and economic reasons, with both countries' leaders were engaged in frequent visits to boost their relations.
The Trans-Pacific Strategic Economic Partnership Agreement (TPSEP), also known as P4, is a trade agreement between four Pacific Rim countries concerning a variety of matters of economic policy. The agreement was signed by Brunei, Chile, Singapore and New Zealand in 2005 and entered into force in 2006. It is a comprehensive trade agreement, affecting trade in goods, rules of origin, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, trade in services, intellectual property, government procurement and competition policy. Among other things, it called for reduction by 90 percent of all tariffs between member countries by 1 January 2006, and reduction of all trade tariffs to zero by the year 2015.
The Comprehensive Economic Partnership for East Asia (CEPEA) is a Japanese led proposal for trade co-operation, free trade agreement, among the 16 present member countries of the East Asia Summit. All those movements and efforts were taken over by the following Regional Comprehensive Economic Partnership.
The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and the Republic of India. The initial framework agreement was signed on 8 October 2003 in Bali, Indonesia. and the final agreement was on 13 August 2009. The free trade area came into effect on 1 January 2010. India hosted the latest ASEAN-India Commemorative Summit in New Delhi on 26 January 2018. In the financial year 2017–18, Indo-ASEAN bilateral trade grew by almost 14% to reach US$81.3 billion. India's imports from ASEAN were valued at US$47.13 billion while its exports to ASEAN stood at US$34.2 billion.
Vangelis (Evangelos) Vitalis is a New Zealand diplomat and trade negotiator currently working as the Deputy Secretary for the country's Ministry of Foreign Affairs and Trade.
The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population and 30% of global GDP, making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.
The negotiations for the Trans-Pacific Partnership Agreement were held between 12 countries between 2008 and 2015. The negotiations were aimed at obtaining an agreement between the Trans-Pacific Strategic Economic Partnership Agreement parties Brunei, Chile, Singapore and New Zealand, as well as the Australia and the United States.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP11 or TPP-11, is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It evolved from the Trans-Pacific Partnership (TPP), which was never ratified due to the withdrawal of the United States. The eleven members have combined economies representing 13.4 percent of global gross domestic product, at approximately US$13.5 trillion, making the CPTPP one of the world's largest free-trade areas by GDP, along with the United States–Mexico–Canada Agreement, the European single market, and the Regional Comprehensive Economic Partnership. The United Kingdom and the present members formally signed an accession protocol on 16 July 2023 and will join the agreement when it has been ratified by all parties, or after 15 months if the UK and a majority of CPTPP parties have ratified it.
Lim Jock Hoi, also referred to as Dato Jock Hoi, is a Bruneian politician and diplomat who served as the 14th secretary-general of ASEAN between 2018 and 2022. He previously served as the permanent secretary of the Ministry of Foreign Affairs and Trade, Brunei.
Vietnam, although a relatively young and small nation, has successfully established trade relations with dozens of countries worldwide. This is especially evident in the number of free trade agreements (FTAs) that the country has signed and is participating in. Being part of the Association of Southeast Asian Nations (ASEAN), economic opportunities for Vietnam expands beyond bilateral trade agreements with specific countries to include multilateral trade agreements via the ASEAN Free Trade Area (AFTA).
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