WT/REG291/R/I  
 
28 February 2020  
(20-1536) Page: 1/6 
Committee on Regional Trade Agreements  
 Original: English  
 
HONG KONG, CHINA - NEW ZEALAND IMPLEMENT ATION REPORT  
 
JOINT SUBMISSION BY THE PARTIES ON THE C LOSER ECONOMIC PARTN ERSHIP 
AGREEMENT BETWEEN HO NG KONG, CHINA AND N EW ZEALAND  
This Implementation Report has been drafted in accordance with Article 15 of the 
Transparency Mechanism Decision and following the draft guidelines contained in JOB/REG/4 issued 
in January 2013.  
 
 This report does not prejudge the Parties' position on the concept and the duration of the 
implementation periods in FTAs and their relationship to the "reasonable length of time" within the 
meaning of Art. XXIV:5(c) of the GATT 1994 or "the reasonable time -frame" within Art. V:1(b) of 
the GATS.  
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1  BACKGROUND INFORMATI ON ON THE AGREEMENT   
1.1.  The Hong Kong, China - New Zealand Closer Economic Partnership Agreement (CEP) was 
signed on 29 March 2010 and the Agreement entered into force on 1 January 2011. Upon entry into 
force of the Agreement, Hong Kong, China bound its existing zero -tariff regime for all goods 
originating in New Zealand. New  Zealand removed tariffs on a linear basis and its full implementation 
has been effective since 1 January 2016.  
1.2.  Statistical data on trade in goods and on trade in services between the Parties can be found in 
Annex 1 of this repor t. 
2  PROVISIONS ON TRADE IN GOODS   
2.1   Import duties and charges, and quantitative restrictions  
2.1.  Annex 1 to Chapter 3 of the Agreement contains the tariff liberali zation schedules of the Parties. 
Hong Kong, China applies zero duty on all imports on an MFN basis. As a result, prior to the entry 
into force of the Agreement, 100% of tariff lines corresponding to 100% of Hong Kong, China 's 
imports from New  Zealand were already duty free. Thus, upon entry into force of the Agreement, 
no additional tariff lines b ecame duty free.  
2.2.  The Tariff Elimination Schedules between Hong Kong, China and New  Zealand have been 
completed over a period of six years for goods originating in Hong Kong, China.  Pursuant to the 
Agreement, New  Zealand has eliminated tariffs for all good s originating from Hong Kong, China since 
1 January 2016.  The tariff elimination schedule as presented in the factual presentation 
(WT/REG291/1/Rev.1) correctly reflects this process.  
2.1.1   Tariffs  
2.3.  Please refer to Annex 1 to Chapter 3 of the Agreement:  
• Hong Kong , China 's tariff elimination schedule:  
https://www.tid.gov.hk/english/ita/fta/hknzcep/files/HKNZCEP031_HKSchedule.pdf   
 WT/REG291/R/I  
 
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  • New Zealand 's tariff elimination schedule : 
https://www.mfat.govt.nz/assets/FTAs -agreements -in-force/Hong -Kong-FTA/NZ -HK-CEP5-NZ-
tariff-schedules.pdf   
 
2.1.2   Tariff quotas  
2.4.  Neither Pa rty maintains tariff rate quotas, including under the Agreement.  
2.1.3   Final tariff schedule applied by RTA parties  
2.5.  Final data to be found in the WTO  RTA database .  
2.2  Export duties and charges, and quantitative restrictions  
2.6.  There are no provisions on export duties and charges or quantitative restrictions in the 
Agreement. Article 2.1 in Chapter 3 of the Agreement provides that the Parties shall not adopt or 
maintain any non -tariff measures on exports except in accordance with  their rights and obligations 
under the WTO.  
2.3  Regulatory provisions on trade in goods  
2.3.1   Rules of Origin  
2.7.  Provisions concerning rules of origin and operating procedures for documentation and granting 
of tariff preferences are described in Chapter 4 of the Agre ement. Product Specific Rules of Origin  
(PSR) are covered in Annex 1 to Chapter 4.  
2.8.  The transposition of PSR in Annex 1 to Chapter 4 to reflect Harmonized Commodity Description 
and Coding System (HS)  2017 nomenclature was completed and the amendments on th e PSRs were 
agreed by the Parties on 20 July 2017.  
2.3.2   Sanitary and phytosanitary measures  
2.9.  Chapter 7 of the Agreement focuses on enhanced implementation of the WTO Agreement on 
Sanitary and Phyto -Sanitary (SPS) Measures as well as mechanisms for strengthening collaboration 
and consultation on SPS matters between the Parties. It provides a framework to address and where 
possible resolve trade access issues with a view to facilitating trade in all products, while protecting 
human, animal or plant life or health.  
2.3.3   Technical barriers to trade  
2.10.   Chapter 8 of the Agreement establishes mechanisms to reduce the impact of technical barriers 
to trade in goods, and  provides for increased cooperation between regulatory authorities. In 
Article  10, the Agreement established a Committee on Technical Barriers to Trade that has allowed 
the Parties to monitor the implementation of the Chapter.  
2.11.   Since the entry into force of  the Agreement, the Committee on Technical Barriers to Trade 
have met and agreed to work intersessionally towards establishing a mechanism to formali ze 
cooperation between regulatory authorities to improve understanding and greater alignment of each  
other 's regulatory regimes.   
2.3.4   Safeguards  
2.12.   Chapter 6, Article 3.1 restates the Parties rights and obligations under Article XIX of the 
GATT  1994 and the WTO Agreement on Safeguards.  Article 3.2 requires that global safeguard 
measures not be applied to imports from the other Party unless the imports in and of themselves 
cause or threaten serious injury.  No provisions on bilateral or special safeguards are included in the 
Agreement.  WT/REG291/R/I  
 
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  2.13.   Since entry into force of the Agreement, the Parties have not applied any global safeg uard 
measures using the mechanisms established under the Agreement.  
2.3.5   Trade defence instruments  
2.14.   The Parties have not applied any measure using the mechanisms under the Agreement.  
2.3.6   Customs -related procedures  
2.15.   Chapter 5 of the Agreement aims to simplify and harm onize customs  procedures as well as 
streamlining and facilitating trade and cooperation between the Parties. There have been regular 
productive and positive cooperation and consultation between the respective Customs 
administrations on the implementation of the Agreeme nt. 
2.16.   The Customs administrations of New  Zealand and Hong Kong, China share a strong 
relationship across all areas of Customs activities. Neither Parties have received any requests to 
make operational enquiries relating to the Agreement . 
3  PROVISIONS ON TRADE IN SERVICES  
3.1  Commitments  
3.1.  The provisions related to trade in services (Chapter 13) cover all four modes of  supply. The 
Agreement 's treatment of specific commitments in modes 1 -3 of services is on a "negative list " 
(Article 7) while mode 4 (Article 15.3 and 1 5.4) is based on a positive list.  
3.2.  There are however certain exceptions to the coverage on trade in services.  Article 2.2  provides 
that this Chapter  does not apply to government procurement, subsidies and grants, natural persons 
seeking employment or citiz enship, residence or employment. Article 2.3 provides that this Chapter  
does not apply to measures affecting air transport or related services in support of air services 
(except to aircraft repair and maintenance services, selling and marketing of air tran sport services, 
and computer reservation system services).  
3.3.  Article 8 provides for a Mandated Services Review, under which the Parties will discuss possible 
new services commitments and further cooperation in areas of mutual interest.  At the third Joint 
Commission meeting, the Parties agreed that the Mandated Services Review would be undertaken 
as part of the Second General Review of the CEP Agreement.  
3.4.  Under Article 16, the Agreement also established a committee on trade in services for the 
effective implem entation and operation of Chapter 13 and Chapter 14 (Movement of Business 
Persons).   
3.5.  Chapter 13 also establishes disciplines on domestic regulation and recogni zing the importance 
of education in its bilateral services relationship, measures to enhance the education relationship 
between the two Parties. An education cooperation arrangement between the Parties concluded in 
October 2011.   
3.2  Regulatory provisions   
3.2.1   Denial of Benefits  
3.6.  Article 14.1 of Chapter 13 provides conditions under which the Parties may deny t he benefits 
of the Chapter to a service supplier of the other Party where the Party determines that the services 
is being is  supplied by an enterprise that is owned or controlled by persons of a non -party and has 
no substantive business operations in the A rea of the other Party; or the service is being supplied 
by an enterprise that is owned or controlled by persons of the denying Party and has no substantive 
business operations in the Area of the other Party. Although substantive business operations and 
ownership and control are not defined in the Agreement, the Parties note that similar terms are used 
in the GATS. Article 14.2 requires that upon denial of benefits a Party must enter into consultations 
(if requested) with the other Party within 30 days of r eceipt of the request. Any consultations held WT/REG291/R/I  
 
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  under that paragraph are without prejudice to the rights and obligations of the Parties under 
Chapter  16 of the Agreement or the WTO Dispute Settlement Understanding .  
3.2.2   Domestic Regulation  
3.7.  Article 9 of Chapter 1 3 is concerned with domestic regulation and is based on Article VI of the 
GATS. The obligations contained apply to all sectors in which there are no reservations. Annex III to 
Chapter 13 sets out disciplines on Domestic Regulation. The purpose of this anne x is to ensure 
domestic regulations do not constitute unnecessary barriers to trade in services between the Parties. 
Annex III to Chapter 13 also describes requirements on transparency, licensing and procedures, 
qualification and procedures and technical s tandards, providing greater certainty and transparency 
for the Parties ' service suppliers.  
3.2.3   Recognition  
3.8.  Chapter 13, Article 10 concerns recognition of education, experience, qualifications, licences  or 
certification granted to services suppliers in the other Party. Ar ticle 10.2 provides that when a Party 
recogni zes the education, experience, qualifications, licences or ce rtification granted to services 
suppliers in a non -Party to the Agreement, it is not obliged to afford r ecognition to service suppliers  
of a Party to the Agreement but shall afford adequate opportunity to the other Party, upon request, 
to negotiate its accession to such an agreement or arrangement or to negotiate one comparable 
with it . 
3.2.4   Subsidies  
3.9.  Article 2.2(c) of Chapter 13 provides that the chapter does not apply to subsidies provided by 
a Party.  
3.2.5   Safeguards  
3.10.   The Agreement contains no provisions on services safeguards.  
4  OTHER PROVISIONS IN THE AGREEMENT  
4.1  Competition  
4.1.  Chapter 9 of the Agreement provides a framework for the promoti on of an open competitive 
market, reducing anti -competitive practices and the promotion of the APEC principles of non -
discrimination, comprehensiveness, transparency and accountability.  The Parties agree there is 
scope for ongoing and mutually beneficial c ooperation in this area.  
4.2  Electronic Commerce  
4.2.  Chapter 10 of the Agreement aims to minimise the regulatory burden on Electronic Commerce 
(E-commerce) , providing online consumer protection and encouraging cooperation on E -commerce 
issues. The Parties have rea ffirmed the importance of a predictable and simple legal environment 
for e-commerce and continued dialogue on matters relating to e -commerce.   
4.3  Intellectual Property rights  
4.3.  Both Parties commitments on intellectual property rights under the WTO Trade -Related  Aspects 
of Intellectual Property Rights (TRIPS) Agreement are reaffirmed in the Agreement.  In relation to 
geographical indications (GIs) the Agreement is based on adherence to international agreements . 
4.4.  The Agreement requires both Parties to provide, on re quest, information on any new laws which 
enter into force in relation to intellectual property, and to exchange information on developments in 
intellectual property policy.  WT/REG291/R/I  
 
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  4.4  Government Procurement  
4.5.  Chapter 12 of the Agreement covers Government Procurement, with Parties restating their 
commitment to the APEC Non -Binding Principles on Government Procurement. Annex I and II 
outlines the commitments made by both Parties in terms of the list of entities, covered goods and 
services, and threshold values for govern ment procurement.  
4.6.  Hong Kong, China 's List of  Entities and Covered Goods and Services  in Annex I to Chapter 
12 do not exceed its commitments under the WTO Agreement on Government Procurement (GPA). 
In 2015, New  Zealand subsequently acceded to the GPA. Both Parties noted the need for a simplified 
mechanism to amend Annexes I, III and IV to Chapter 12 and continue to discuss the matter.  
4.5  Transparency  
4.7.  Chapter  15 of the Agreement sets out measures ensuring transparent and open communication  
in relation to the laws, regulations, procedures, and administrative rulings of general application 
with respect to matters covered by the Agreement.  
4.8.  As provided for under A rticle 2 of Chapter 15, both Parties ensure that the laws, regulations, 
procedures  and administrative rulings of general  application with respect to these matters are 
promptly published or otherwise made available to interested persons and the other Party with a 
reasonable opportunity to comment on such proposed measures.  
4.6  Environment and Labour Cooperation  
4.9.  Chapter 18, Article 4 notes that parties shall continue cooperation in the context of the 
New Zealand - Hong Kong, China Environment Cooperation Agreeme nt and the Memorandum of 
Understanding on Labour Cooperation which concluded separately from, but at the same time, as 
the Agreement.  
4.10.   The Environment Cooperation Agreement establishes a set of shared environment principles 
and a framework for cooperation . The Memorandum of Understanding on Labour Cooperation 
establishes a set of shared labour principles, and establishes a framework for cooperation a nd for 
promoting mutually beneficial sharing of experience and expertise.  
4.7  Dispute Settlement  
4.11.   Chapter 16 (and its annex) of the Agreement provides a transparent mechanism for the 
resolution of disputes between Hong Kong, China and New  Zealand resulting from the 
implementation of the Agreement. An arbitral tribunal may be established if consultations fail to 
resolv e the issue. The Parties have not made use of this mechanism.  
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  WT/REG291/R/I  
 
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  ANNEX 1  
STATISTICS ON TRADE IN GOODS AND SERVICE S 
Table A1. 1 Hong Kong, China: Imports from New Zealand HK$ (million)  
Year Goods  Services  Total  
2009 3,319  1,662  4,981  
2010 3,574  1,887  5,461  
2011 4,060  2,134  6,194  
2012 4,679  2,060  6,739  
2013 4,604  1,995  6,599  
2014 4,323  2,095  6,418  
2015 3,708  1,919  5,627  
2016 3,718  1,914  5,632  
2017 4,708  2,078  6,786  
2018 5,383  N.A. N.A. 
N.A.  Not available . 
Source:  Hong Kong Census & Statistics Department  
 
Table A1. 2 New Zealand: Imports from Hong Kong, China NZ$ (million)  
Year* Goods  Services  Total  
2009 152 263 415 
2010 140 285 425 
2011 150 282 432 
2012 145 246 391 
2013 136 269 405 
2014 120 308 428 
2015 105 335 440 
2016 99 288 387 
2017 85 314 399 
2018 90 323 413 
* Year ended December.  
Source:  Stats NZ  
 
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