Nowadays, Free trade agreements of New Zealand is a topic that has gained great relevance in society. Over time, it has become a point of discussion and debate between experts and ordinary citizens. Its impact has been felt in different areas, from politics to popular culture. Free trade agreements of New Zealand has aroused the interest of many people due to its influence on our lives and its ability to generate significant changes. In this article, we will explore different aspects related to Free trade agreements of New Zealand, examining its implications, its evolution over time and its importance today.
The Economy of New Zealand is a market economy which is greatly dependent on international trade, mainly with Australia, the United States of America, China and Japan. It is strongly dependent on tourism and agricultural exports, and has only small manufacturing and high-tech components. Economic free market reforms of the last decades have removed many barriers to foreign investment, and the World Bank has praised New Zealand as being the most business-friendly country in the world.
Regional and bilateral free trade agreements have become an important part of New Zealand's international trade policy. New Zealand has used free trade agreements also known as closer economic partnerships to liberalise trade between economies. A Closer Economic Partnership Agreement with Thailand was negotiated in 2004 and implemented in 2005. Negotiations for a Free Trade Agreement with Chile, Brunei and Singapore known as the Trans-Pacific Strategic Economic Partnership were concluded in 2005. Negotiations for further agreements with Malaysia were undertaken in 2006, but failed to reach a conclusion. The historic FTA with China was signed in Beijing in April 2008.
On 27 February 2009 New Zealand and its close partner Australia signed a Free Trade Agreement with the ASEAN regional block of 10 countries. It is estimated that an FTA with ASEAN would boost aggregate GDP across the 12 countries by more than US$48 billion over the period 2000–2020 with an additional US$3.4 billion to New Zealand alone.
Free Trade Agreements in force
Here is a list of free trade agreements of which New Zealand is part. In parentheses, the abbreviation, if applicable, membership if not stated before, and the date of coming into force are to be seen.
New Zealand is negotiating bilateral and multilateral free trade agreements with the following blocs and countries:
: New Zealand - Pacific Alliance – negotiating since 2017
Mercosur: New Zealand-Mercosur Free Trade Agreement – negotiating since 2010
Gulf Cooperation Council: Negotiations began in 2007 and concluded in 2009 but the agreement is not yet in force
India India–New Zealand Free Trade Agreement – negotiating since 2007 with the establishment of a JSG (Joint Study Group) looking at the feasibility of an Indian-NZ FTA.
Russia Russia-Kazakhstan-Belarus Free Trade Agreement – negotiations began in 2010 but are currently suspended
Kazakhstan Russia-Kazakhstan-Belarus New Zealand Free Trade Agreement – negotiations began in 2010 but are currently suspended
Belarus Russia-Kazakhstan-Belarus Free Trade Agreement – negotiations began in 2010 but are currently suspended
Abandoned or superseded proposals
The Trans-Pacific Strategic Economic Partnership, a multilateral trade agreement involving 4 countries with which New Zealand has existing trade agreements – Malaysia, Brunei, Chile, Singapore, and Australia – and nations with which New Zealand does not have an existing FTA: