haoby John MacDonald
WELLINGTON, March 25 (Xinhua) -- The "shopping list" is all written up as New Zealand heads into talks to upgrade its free trade agreement (FTA) with China.
But trade officials and exporters have expectations that won't appear on the final documents as they want leadership from China during uncertain times.
FREE TRADE ADVOCATE
Still recovering from the United States' withdrawal from the 12-nation Trans-Pacific Partnership (TPP) agreement and with signs of growing U.S. insularity, New Zealand is seeking a new light in free trade.
New Zealand will be looking for signs from visiting Chinese Premier Li Keqiang as to how China sees the new "trade architecture" of the Asia-Pacific region, said New Zealand China Council Acting Executive Director Stephen Jacobi.
Jacobi said New Zealand exporters would like to see China "pick up the pace a bit" in the 16-nation Regional Comprehensive Economic Partnership (RCEP) talks.
Catherine Beard, executive director of the Export New Zealand lobby group, sees a major role for China in "a sort of coalition of the willing" to continue to advocate for free trade.
"Across the Asia-Pacific, there's been a lot of people pulled out of poverty due to trade. I think China understands the value of trade hugely because of the transformation of its economy, which wouldn't have been possible without access to international markets," Beard told Xinhua.
"If we can have countries like China raising the bar in agreements like RCEP, that would be hugely helpful because they have the negotiating power and if the Asia-Pacific could become a free trade area that could become very powerful," she said.
As anti-globalization is rearing its head worldwide, the Chinese leadership has recently stressed on various occasions that the country will remain committed to its opening-up policy and promoting global free trade and investment.
"We have seen in practice how the trend of economic globalization has become closely interconnected with, even inseparable from, peace, development and cooperation," Li said in a signed article carried Wednesday by an Australian newspaper, ahead of his visit to the country.
"We stand ready to work with other countries to support economic globalization and free trade, improve the global governance system and facilitate progress of mankind," said Li, who left Beijing on Wednesday for official visits to Australia and New Zealand, the first such by a Chinese premier to the two Oceanian countries in 11 years.
A NEW FIRST
This month, the New Zealand government announced an ambitious goal of having free trade agreements cover 90 percent of the country's exports by 2030, up from 53 percent now.
Trade Minister Todd McClay told Xinhua New Zealand sees China as a constructive partner. "So their agreement to launch an upgrade to our FTA is a demonstration that they support a high-quality agreement and they're starting to show leadership in the RCEP negotiations which New Zealand is also involved in."
"For any country in the world that believes trade agreements can deliver for their economies and their citizens, the best way to do this is with a high quality ambitious comprehensive agreement," said McClay.
"Certainly I would argue that the China-New Zealand FTA is one of those and we'll be looking to make sure that the level of ambition delivered to the RCEP agreement is also extremely high," McClay added.
McClay said the upgrade is another first to add to the "four firsts" already achieved in New Zealand's relations with China: the first developed country to agree to China's accession to the World Trade Organization in 1997; the first country to recognize China as a market economy in 2004; the first developed country to start FTA negotiations with China in 2004; and the first developed country to successfully conclude FTA negotiations with China in 2008.
"It shows the maturity and strength of the relationship," he said, adding New Zealand-China trade ties have grown significantly since the FTA came into effect.
PEOPLE-POWERED TRADE
So what specifically is on the agenda?
"For New Zealand, it's about finding ways to ensure that the high-quality agreement that we signed with China eight years ago remains relevant and keeps pace with the growing relationship, but in particular we'll want to look at services and investment and the digital economy," said McClay.
"We also think that non-tariff measures are important. The current agreement has a way of dealing with non-tariff measures or non-tariff barriers, but we want to make sure that it continues to deliver," he said.
Better access for meat, especially the highest quality fresh meat, said Beard, horticulture and processed forestry products are also viewed as important for New Zealand.
Much of the negotiation will focus on updating administrative requirements and regulations, though these are evolving as trade expands.
Visas should also be on the agenda so more New Zealanders can take up internships and work opportunities in China, said Asia New Zealand Foundation Executive Director Simon Draper.
While all this is important to growing trade, the FTA upgrade would be a bonus in itself, New Zealand China Trade Association Chairman Martin Thomson told Xinhua.
"The other aspect is that an FTA upgrade is very good for the profile of New Zealand within China. It just brings with it a whole lot of publicity and focus and would be seen in China as a positive step in the relationship of the two countries," Thomson said.
