What to expect from China-New Zealand FTA Upgrading

Chinese Premier Li Keqiang's visit to New Zealand marks the 45th year of diplomatic relations between China and New Zealand, and comes three years after the two countries formed a comprehensive strategic partnership during a visit to New Zealand by the Chinese President Xi Jinping.

Chinese officials say Premier Li's visit is expected to lead to the upgrading of bilateral free trade agreement.

CRI's Min Rui has more.

Bilateral trade between China and New Zealand has increased nearly threefold compared with 2008, when the two countries first reached a free trade agreement.

Former Chinese Ambassador to New Zealand Chen Mingming has described Premier Li Keqiang's visit to New Zealand as of primary importance to keeping up the trade momentum on the two sides.

As a diplomat who was involved in launching of the FTA, he says the agreement has benefited both countries.

"The enactment of the FTA has shown that it has benefited both China and New Zealand in a number of ways. It's definitely a big plus for the growth of our relations. And I expect that Premier Li Keqiang's visit to New Zealand will further upgrade the FTA between China and New Zealand as it is planned. And this will definitely open up more business opportunities for mutual export between China and New Zealand."

The first round of negotiations on upgrading the FTA will be held in the first half of this year. Chen Mingming says the dairy export quota is likely to be lifted, which could be a boost to the New Zealand economy.

"Upgrading of the FTA will focus on a very important area, namely raising the quotas of New Zealand exports of dairy products to China which means that New Zealand can export more dairy products to China at zero tariff rate and that is very important for New Zealand, who's economy is based primarily on exports of dairy products and other agricultural products."

New Zealand dairy products make up about 40 percent of China's imported infant milk dairy market. Whole milk powder, for example, is now imported almost solely from New Zealand.

Besides dairy, prior to Li Keqiang's departure from Beijing, China's Vice Foreign Minister, Zheng Zeguang, made it clear that the upgrading of the FTA will cover more areas.

"Upgrading the FTA is a new opportunity for the two sides to expand trade and investment so as to enhance the bilateral cooperation. The two sides are also expecting to upgrade their strategic cooperation in such areas as infrastructure, agriculture and husbandry, technological innovation, education, culture, tourism and civil aviation."

Zheng also said the upgrading will bring more openness to the markets and reach a consensus on e-commerce.

Besides trade cooperation, people-to-people exchanges and tourism cooperation will also be promoted during Li's visit.

For CRI, I'm Min Rui.