KEY POINTS:
For New Zealand, successfully concluding a Free Trade Agreement (FTA) with China represents a significant and historic achievement.
Not only does it serve to deepen our existing bilateral relationship, but it also helps position New Zealand businesses so that they may have every opportunity to succeed in doing
business with this dynamic market now and in the future.
Signed in Beijing on 7 April 2008, the conclusion of the FTA signalled a new and important phase in our trade relationship with China.
It is the biggest single event in diplomatic relations between our two countries in 35 years, and our biggest bilateral trade deal since we established CER with Australia 25 years ago.
China is the fastest growing major economy in the world, currently growing at 9.5 per cent each year. Already, China is our third largest trading partner. China's middle class is now estimated to be more than 100 million people and growing - which will fuel the demand for New Zealand's exports of goods and services. There should also be opportunities for investment in both directions.
As was our aim throughout the process, the outcome of the negotiations has been a balanced, high quality, and comprehensive agreement which will liberalise and facilitate the trade in goods and services and investment between China and New Zealand.
Furthermore, beyond the economics of the agreement, the FTA also supports New Zealand's objective of broadening and deepening relations in Asia and with China in particular, and advances our goal of strengthening our economic ties in the Asia-Pacific region.
What should also not be underestimated is the fact that being the first developed country to negotiate a comprehensive FTA with China gives New Zealand, for a time, a unique competitive advantage. As witnessed at the occasion of the signature in Beijing last month, the FTA has raised New Zealand's profile to new heights and provided us with the opportunity to leverage off that profile.
Right now we have an advantage over global competitors in the China market. This advantage will not last forever. With a number of other countries also looking to negotiate their own agreements with China, it is important for New Zealand businesses to take advantage of this agreement now.
As such, following the signature of the agreement and while the Government looks to secure the passage of legislation necessary for entry into force of the FTA by 1 October as both countries intend, we see the challenge shifting from being predominantly one for government, to a challenge facing business. After all, governments don't trade, businesses do.
It is businesses' willingness, commitment, and ability to create a product or service for which there is a demand and to market it effectively which will determine the extent to which New Zealand gains value from the FTA.
With China, the challenge we all share now is to ensure that New Zealand business is in the best position to take advantage of the new opportunities which the New Zealand-China FTA has created.