NZ passes law to ratify China trade deal

The China Free Trade Agreement Bill, which will phase out tariffs on a broad range of goods and services starting Oct. 1, passed by a vote of 104 to 17, with strong support from the two main parties.

Trade Minister Phil Goff said the deal with Beijing would bring major benefits for exporters.

"Initial tariff cuts will take place on Oct. 1, resulting in the immediate elimination of tariffs on over $200 million (New Zealand dollars) worth of current New Zealand exports to China," Goff said in statement. That amount equals $150 million.

"By 2017, tariffs on 96 percent of New Zealand's exports to China, which currently cost exporters 120 million New Zealand dollars ($90 million) a year, will be phased out," he said.

Two-way trade between China and New Zealand currently is worth more than NZ$8.1 billion ($6.1 billion) a year, with Chinese exports making up about 75 percent of the total, according to Statistics New Zealand.

Tariffs on dairy products, a key New Zealand export, will be phased out through 2019, when almost all of the country's current exports to China will be tariff free.

Beyond trade in goods, the agreement also covers the services sector, from insurance and banking to education and labor supply.

The agreement allows for up to 1,800 Chinese to enter New Zealand each year to work in areas such as traditional Chinese medicine, language instruction and food service.

Goff said the agreement would give New Zealand companies a unique competitive advantage in the world's fastest-growing economy.