China is New Zealand's number one goods trading partner, export market and source of imports, accounting for approximately 30 per cent of New Zealand's external exports of goods and services and is the largest single buyer of New Zealand's dairy products, meat, timber and fruit.

This past year, 2022, marked the 50th anniversary of diplomatic relations between China and New Zealand. Figures show that bilateral trade between China and New Zealand started at just NZ$7 million when diplomatic relations were established, reached NZ$6.3 billion in 2008 when the two countries signed a free trade agreement, and has since grown at an annual rate of more than 10 per cent to surpass NZ$30 billion in 2019. Even as the Newcastle pneumonia epidemic has hit global trade, bilateral trade between New Zealand and China has continued to grow "against the wind", with trade between the two countries growing by up to 36% year-on-year in 2021.

On 3 March this year, New Zealand's new Ambassador to China, Grahame Robert Morton, visited CCPIT and exchanged views with CCPIT President Ren Hongbin on the development of economic and trade relations between China and New Zealand, as well as cooperation between enterprises of the two countries. In an exclusive written interview with China Trade News recently, he said, "Over the past 50 years, our trade relations have made significant progress as the economies of both countries have grown. The trade relationship is an important part of the relationship between the two countries, as are the ties in terms of human interaction and our shared global environment."

Speaking to reporters, Maury said, "The original FTA between China and New Zealand came into force in 2008, which was a success for both sides. Since then, bilateral trade between the two countries has grown four-fold in the first decade. To this day, bilateral trade is still growing and relatively balanced."

He told reporters that in 2022, bilateral trade between the two countries will still be close to NZ$38 billion, despite the challenges of the new crown pneumonia epidemic. Both countries benefit from the choice of products available in the marketplace for consumers in both countries, whether it is high-quality food and beverages and specialist medical equipment from New Zealand, or a wide range of manufactured goods from China sold in New Zealand, even including electronics and electric cars.

"New Zealand is a strong supporter of free trade, as well as regional and international organisations that support it. We seek to trade with all our partners under the agreed framework of the World Trade Organisation, with specific open regional multilateral agreements and bilateral FTAs that are consistent with WTO commitments and provide greater opportunities for our businesses." Maury said New Zealand and China cooperate under regional and multi-variate frameworks including APEC and the WTO. Both countries are members of the Regional Comprehensive Economic Partnership Agreement (RCEP), which comes into force in 2022.

At the same time, trade affects other important areas such as ecological protection and climate change. "At the 12th WTO Ministerial Conference in 2022, New Zealand and China committed to working together on important issues including fisheries subsidies and the trade response to the New Crown Pneumonia outbreak." He described.

On 18 August last year, the Working Group on China's accession to the Digital Economy Partnership Agreement (DEPA), the world's first regional agreement on the digital economy, was formally established and New Zealand is a member of this agreement. In response, Maury said that DEPA covers all aspects of the digital economy and supports trade in the digital age. This agreement is open to other parties who meet the criteria to join.

"We are pleased to see that the Digital Agreement is attracting increasing interest, with requests for accession received, including from South Korea, China, Canada and Costa Rica. New Zealand is keen that the Digital Agreement can be a pathfinder agreement and attract others to join. We look forward to continuing discussions with China in the area of the digital economy."

In 2022, the China-New Zealand FTA Upgrade Protocol comes into force. Maury believes that it is important for businesses to implement the terms of the agreement to keep the rules clear and predictable. The FTA upgrade is seen as a new opportunity to further deepen and expand the economic and trade relationship between China and New Zealand. While previous FTAs between the two countries have provided duty-free access for 98 per cent of New Zealand exports and 100 per cent of Chinese exports, the rapid growth of trade between the two countries over the past decade has also prevented some new elements from being included.

In addition to improvements in market access for goods and services, the upgraded agreement further enhances the ease of trade between the two countries by reducing red tape, saving time and lowering costs for businesses. Both sides have also committed through the upgraded agreement to cooperate in new areas such as e-commerce, environmental protection, small business and competition policy.

"For New Zealand, the upgraded agreement is an important part of driving economic recovery in the wake of the Newcastle pneumonia outbreak. For a small, trade-dependent economy like New Zealand, a commitment to the trade architecture and a rules-based international order is important, especially against the backdrop of the Newcastle pneumonia epidemic which has put pressure on economies around the world."

In 2013, China jumped to become New Zealand's largest trading partner and has since become New Zealand's top trading partner, top source of imports and top export market in succession. In response, Maury said New Zealand and China's cooperation in the economy and trade spanned many aspects, as did the two countries' extensive bilateral relationship. "We look forward to meeting in a face-to-face manner this year."

Maury said the standards held by the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPA) and DEPA were an extension of the standards applied by the WTO. New Zealand supports economies that are willing and able to meet these standards to join these agreements and to grow and develop. As a member of these agreements, New Zealand has received formal applications for China's accession to both agreements and will follow the process in the future.

At the same time, New Zealand recognises China's efforts to improve its business environment and is willing to share its experience in doing so with China. "Since 2019, New Zealand has planned and held seven Doing Business seminars and exchanges, at which officials from New Zealand's central and local regulators made several presentations. We hope to continue this work in the year ahead." Maury said.

"As an Embassy, we are looking forward to the 6th China International Import Expo later this year. New Zealand has participated in every China International Import Expo to date. We expect a significant number of New Zealand companies to visit China this year for the first time since the new crown pneumonia outbreak. At the same time, we would welcome more Chinese students, business visitors and tourists to New Zealand again in 2023." Maury said.