NZ-Hong Kong trade agreement in effect

Trade Minister Tim Groser. Photo / Greg Bowker

The New Zealand-Hong Kong Closer Economic Partnership Agreement (CEP) came into force on Saturday, making cuts to remaining New Zealand tariffs.

Trade Minister Tim Groser said both countries had completed the necessary legislative measures and the agreement took effect January 1.

New Zealand goods currently entering Hong Kong at a zero tariff will now be bound at that level. The CEP also paves way to further progressive reductions, which will mirror those in the New Zealand-China Free Trade Agreement.

"As the only two developed economies with Free Trade Agreements with China, New Zealand and Hong Kong have both mitigated the worst effects of the global recession through our businesses' performance in that dynamic market," Mr Groser said.

Hong Kong is New Zealand's ninth largest export market, worth $865 million in the year to October 2010.

In the first half of 2010, Hong Kong's GDP grew by a robust 7.2 per cent, largely attributable to the return of domestic demand and strong exports to mainland China.

- NZPA