Legislation bringing in China FTA passed

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Parliament has passed legislation which will bring in the Free Trade Agreement with China on October 1 and the Government says it represents a historic advance in New Zealand's trading relationships.

The New Zealand-China Free Trade Agreement Bill passed its third reading on a vote of 104 to 17, strongly supported by the National Party and opposed by the Greens, New Zealand First and the Maori Party.

Trade Minister Phil Goff said being the first developed country to sign an FTA with China would bring major benefits for exporters.

"Initial tariff cuts will take place on October 1, resulting in the immediate elimination of tariffs on over $200 million worth of current New Zealand exports to China," he said.

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

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

"Our exports to China, currently at more than $2 billion a year, are estimated to grow by between $230-350 million a year faster than they would have without an FTA."

- NZPA