China and New Zealand signed the upgrading protocol of their free trade agreement (FTA) via video link on Tuesday with new commitments in trade market entry, investment and other key aspects, sending a positive signal of partnership to combat the pandemic, and to support multilateralism and free trade.
Based on the original China-New Zealand FTA signed in April 2008, the two sides will enjoy more benefits after the upgrading, according to a statement on the website of China's Ministry of Commerce.
China will expand opening-up of its aviation, education, finance and other sectors to New Zealand, based on the Regional Comprehensive Economic Partnership (RCEP), while New Zealand will relax the review threshold for Chinese investment, making sure that Chinese investment enjoys the same treatment as members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), read the statement.
Under the new protocol, New Zealand will not investigate Chinese government investors with investments of no more than NZ$100 million ($71.82 million) or non-government investors with investments of no more than NZ$200 million, China News Service reported.
It's a huge sign of progress, compared with the existing NZ$10 million threshold, the report said.
In addition, the scope of industries that Chinese investors can participate in has been enlarged, to include services such as marketing, human resources, and tourism in New Zealand, said the report.
Bilateral trade is expected to see rapid growth, as the ratio of zero-tariff goods that China imports from New Zealand will be increased, boosting imports of good-quality New Zealand products, analysts said.