The economic cooperation agreement signed last week by Taiwan and New Zealand received the Executive Yuan's official approval today. Premier Jiang Yi-huah said the pact is significant to Taiwan because it paves the way for forging similar deals with Singapore and other countries.
The Agreement Between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC) will not only open new export markets, promote investment and benefit consumers in both countries, Jiang said, but also allow Taiwan to integrate more deeply into the Asia-Pacific economy.
Premier Jiang added that Taiwan's integration into the global trade mechanism has been high on the national agenda for many years, and this year has seen several breakthroughs. In addition to the ANZTEC, Taiwan resumed talks with the U.S. on the Trade and Investment Framework Agreement in March, and concluded a services trade agreement with mainland China in June. The premier expressed gratitude to the ANZTEC negotiation team and the government agencies involved for their hard work over the past two years.
The ANZTEC deal will benefit both sides, Jiang continued. Top Taiwan products such as machine tools, electronics and information technology goods will be able to make inroads into the New Zealand market, and New Zealand's leading products will be able to enter Taiwan. However, since New Zealand's agricultural exports are very competitive, the ROC government has negotiated measures to protect local farmers. Rice products will be excluded from the tariff reduction list, while antler velvet and liquid milk will be subject to tariff quotas, which will be gradually reduced over a 12-year period. Jiang asked the Council of Agriculture to provide farmers with business guidance on the more sensitive products and help minimize the deal's potential impacts.
The ANZTEC is now pending ratification by the Legislative Yuan. It will officially take effect after Taiwan and New Zealand have exchanged documentation and verified that all legal procedures have been completed, indicated the premier. Within one month of the signing, the competent authority should also amend the Customs Import Tariff law and related regulations for the Legislature's review.