Taiwan-New Zealand economic accord clears legislative floor

Taipei Economic and Cultural Office in New Zealand

Taiwan-New Zealand economic accord clears legislative floor

The Legislative Yuan passed Tuesday an economic accord the country signed with New Zealand in July and a related Foreign Trade Act amendment.

The Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC) is the first economic pact Taiwan has signed with a country that is not a diplomatic ally.

The Foreign Trade Act was amended accordingly to include provisions such as expanding the range of organizations authorized to issue certificates of origin.

The Legislature also passed a resolution requiring the Council of Agriculture to help local farmers develop their brands and expand their distribution channels in order to reduce the accord's impact on them.

Hsu Kuai-sheng, head of the council's Department of International Affairs, said the pact is a landmark deal and that the Legislature's approval will have positive effects on Taiwan's efforts to sign similar agreements with other countries.

He also pointed out that Taiwan has negotiated some favorable terms with New Zealand to lower the impact on local industries, such as the gradual removal of the import tariff on milk from New Zealand over a 12-year-period.

Meanwhile, an earlier report commissioned by the Ministry of Economic Affairs shows that once the accord is fully enforced and all the trade tariffs covered by the pact are removed, Taiwan is expected to see an increase of US$303 million in its annual gross domestic product as result.

Government data show that Taiwan exported US$523 million-worth of goods to New Zealand last year, while imports from there stood at US$691 million.

The two countries began negotiating the pact in May 2012.

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