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Upgraded China-New Zealand FTA to boost regional cooperation

By Tom Fowdy
0 Comment(s)Print E-mail China.org.cn, April 12, 2022
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Straddle carriers on the dock at the Ports of Auckland in New Zealand. [Photo/cfp.cn]

China and New Zealand recently ratified and implemented the upgrading of their bilateral free trade agreement, which has now come into force, eradicating most tariffs on imports and exports between the two countries. 

China is New Zealand's largest export market, accounting for nearly 30% of its exported goods. These are largely in the field of agricultural products, with China's 1.4 billion people and burgeoning food demands providing ample opportunity for New Zealand's sparsely populated country of 5 million and rich farmland. The total value of all the exports amounted to $20 billion in 2019.

It is no surprise on this note that the countries have sought to double down on free trade agreements and more deeply integrate their economies. The new commitment to an extended FTA demonstrates New Zealand's moderate and cautious example, recognizing that there is only one path to regional prosperity: that of pursuing a pragmatic foreign policy.

China is the largest and geographically closest export market to New Zealand, and there is no other country in the world capable of matching it. As a result, it is in New Zealand's economic interests to pursue a degree of regional integration with China as a Pacific Ocean country, signing up to a number of free trade deals and provisions. This path is beneficial not just for their export numbers but also by positively engaging China and ensuring that Beijing complies with certain standards and regulations on its inbound trade that meet the interests of New Zealand. As such, the positive results can be described as a "win-win." Moreover, such win-win FTA upgrades also show the importance of China to continued economic development and prosperity in the region. 

Given the global circumstances of uncertainties that are interrupting trade and business, the implementation of the upgraded protocol reflects the determination of China and New Zealand to support multilateralism and free trade through practical actions. This is conducive to safeguarding the stability of global industrial and supply chains.

Certain regional and global powers, particularly the U.S. and Australia, are pursuing Cold War-style antagonism against China, deliberately formulating political distrust, tensions, and uncertainty in relations. This is ultimately detrimental to the wider interests of countries involved as it is a foreign policy without balance or reason.

New Zealand otherwise exhibits greater maturity, sensibility, and prudence in how it handles its own respective national interests and differences with other countries, which is expected to boost bilateral economic and trade activities and provide a solid deterrent to decoupling. 

All countries can be better off following the practice of seeking common sense instead of alignment or opposition. 

Tom Fowdy is a British political and international relations analyst and a graduate of Durham and Oxford universities. For more information please visit: 

http://www.formacion-profesional-a-distancia.com/opinion/TomFowdy.htm

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