This month New Zealand and Taiwan have signed an economic cooperation agreement which is set to benefit both economies.
Taiwan has been in New Zealand’s top ten most important markets and this closer partnership and easing of restrictions should help reinvigorate trade between the two economies.
Among the most notable provisions of the agreement is the removal of tariffs on New Zealand exports into Taiwan. In the next four years 98% will be eliminated and full duty-free trade will be achieved within 12 years. This gives New Zealand an edge in the competitive global marketplace and pays homage to Asia’s demand for our high quality goods and services.
The world is moving towards a more modernised approach to trade and the new agreement reflects this. The New Zealand and Taiwanese governments are committed to balancing economic objects with indigenous rights and the environment. By immediately removing tariffs for products that support sustainability and encouraging a fuller understanding of Māori and Chinese Taipei, both countries will benefit from the agreement for years to come.
It is predicted that New Zealand’s annual exports to Taiwan will grow by up to NZ$775 million dollars when the agreement comes into force next year. This increase in trade and market access will be further facilitated by the removal of flight restrictions, which currently limits travel between New Zealand and Taiwan to seven flights per week.
New Zealand’s partnership with China, Hong Kong and now Taiwan is an exciting prospect for those looking to extend their presence in Asia. If you would like to take advantage of this burgeoning opportunity or have questions about how the agreement will affect your intellectual property, please feel free to contact one of our experts here at AJ Park. We are always happy to help.
This article was written by Sue Ironside and Lucy Hopman.