NZ trade deal with Hong Kong

New Zealand and Hong Kong have hammered out a comprehensive free trade agreement – the first outside China for the special administrative region.

Prime Minister John Key said it represented another link in the chain of FTAs for New Zealand.

"It's largely based on the services sector ... and will be a welcome addition for New Zealand companies looking to grow and expand into the services sector in Hong Kong," Mr Key said.

It would particularly benefit computer firms like Datacom and the hi-tech and education sectors.

It follows an earlier attempt in 2002 which foundered on Hong Kong's concerns at exposing its service sector. It also wanted first to negotiate a free trade deal with China.

The deal, which is likely to be signed next year, will require ratification and consequent law changes by Parliament, officials here said.

Hong Kong was New Zealand's ninth or tenth biggest market worth about $800 million, but the aim was to grow that.

"It's another gateway into the Asian region and it's an extension of the patchwork quilt that we are weaving in the trade area," Mr Key said.

"That leaves us next year with two very important potential FTAs, which is obviously Korea and India and ... at some point into the future Japan, leaving the only obvious and gaping hole the United States."

Mr Key yesterday held talks with United States Treasury secretary Timothy Geithner, on the eve of the Apec leaders' summit here in Singapore, at which he pressed the case for a free trade deal building on the Trans Pacific Partnership linking New Zealand, Singapore, Brunei and Chile.

- © Fairfax NZ News