New Zealand-China FTA: One-year on

Trade Minister Tim Groser today welcomed the first anniversary of the entry into force of the New Zealand-China Free Trade Agreement (FTA).

"This FTA is a major milestone in our relationship with China. Trade with China is critically important for New Zealand - China is now our third largest trading partner.

"NZ-China relations have continued to go from strength-to-strength. The FTA has led to increased cooperation between our two economies in a wide range of areas. This engagement brings significant gains to both countries through increased knowledge-sharing and people-to-people links.

"Despite a depressed global economy, two-way trade (imports plus exports) between New Zealand and China increased in the past year alone by 23 per cent to reach just over $10 billion.

"Our exports to China have increased by almost 60 per cent over the last year - worth $3.5 billion. Dairy exports have seen the biggest increase but there has been significant growth across a range of sectors including lamb, timber, kiwifruit, wool and wine exports.

"Some of this increase is due to market forces - it is clear that there is strong Chinese demand for quality New Zealand products. Nevertheless, the FTA provides a solid platform for strengthened commercial links with China, and we will see trade boosted as tariffs continue to fall in coming years.

"The FTA is an instrument in the battle against protectionism and sends a strong message on the importance of expanding trade in response to tough economic times.

"I am very pleased with the progress we have made in the first year of the FTA, and look forward to visiting China to mark this progress in the near future," Mr Groser said.