WT/REG348/1  
16 July 2014  
(14-4132)  Page: 1/45  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
AGREEMENT BETWEEN NEW ZEALAND AND THE SEPARATE CUSTOMS  
TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU ON ECONOMIC COOPERATION 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu, has been drawn up by the WTO Secr etariat on its own responsibility and in 
full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided 
and does not imply official endorsement or  acceptance by the Secretariat of such 
terminology. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional 
Trade Agreements (WT/L/671) and thus does not imply any value judgement by 
the Secretariat regarding the contents of the Agreement.    
Any technical questions arising from this report may be addressed to 
Ms. Jo-Ann Crawford (tel: +41 22 739 5422). Any statistical questions arising from this report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). WT/REG348/1 
 
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  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 9  
2.1   Background  informat ion ............................................................................................. 9  
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 11  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 11 
3.1.1   Genera l provisions ................................................................................................. 11 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 11 
3.1.3   Liberalization  schedule by  product ............................................................................ 12 
3.1.4   Tariff rate quotas ................................................................................................... 13 
3.2   Rules of origin .......................................................................................................... 14 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 15 
3.4   Regulatory provisions on trade in goods ....................................................................... 15 
3.4.1   Standards ............................................................................................................. 15 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 15 
3.4.1.2   Technical barriers to trade .................................................................................... 16 
3.4.2   Safeguard mechanisms ........................................................................................... 17 
3.4.2.1   Global safeguards ............................................................................................... 17 
3.4.2.2   Bilateral safeguards ............................................................................................. 17 
3.4.3   Anti-dumping and countervailing measures ............................................................... 17 
3.4.4   Subsidie s and State-aid .......................................................................................... 17 
3.4.5   Customs-re lated procedures .................................................................................... 17 
4   PROVISIONS ON CROSS BORDER TR ADE IN SERVICES AND INVESTMENT ................ 18  
4.1   Scope and definitions ................................................................................................ 18 
4.2   Cross Border Trade in Services ................................................................................... 18 
4.3   Investment .............................................................................................................. 18 
4.4   Denial of benefits ..................................................................................................... 19 
4.5   General provisions on trade in services ........................................................................ 19 
4.5.1   Mark et acce ss ....................................................................................................... 20 
4.5.2   National treatment and MFN .................................................................................... 20 
4.5.3   Local Presence ...................................................................................................... 21 
4.5.4   Performanc e Requirements ..................................................................................... 21 
4.5.5   Senior Management and Boards of  Direct ors .............................................................. 21 
4.6   Other investment-related provisions ............................................................................ 21 
4.7   Movement of  natural persons ..................................................................................... 22 
4.8   Liberalization commitments ........................................................................................ 23 
4.8.1   Chinese Taipei ....................................................................................................... 24 WT/REG348/1 
 
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  4.8.1.1   Horizont al commit ments ...................................................................................... 24 
4.8.1.2   Sector-spe cific commitments ................................................................................ 24 
4.8.2   Ne w Zealand ......................................................................................................... 27 
4.8.2.1   Horizont al commit ments ...................................................................................... 27 
4.8.2.2   Sector-spe cific commitments ................................................................................ 28 
4.9   Regulatory provisions ................................................................................................ 31 
4.9.1   Domestic regulation ............................................................................................... 31 
4.9.2   Recognition ........................................................................................................... 31 
4.9.3   Subsidies .............................................................................................................. 32 
4.9.4   Monopolies and Excl usive Service Suppliers ............................................................... 32 
4.10   Sector specific provis ions on trade in services ............................................................. 32 
4.10.1   Electronic Commerce ............................................................................................ 32 
4.10.2   Air Tran sport Serv ices .......................................................................................... 32 
4.10.3   Film and Tele vision Co-Production .......................................................................... 32 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 33  
5.1   Tran sparency ........................................................................................................... 33 
5.2   Current payments and capital movements .................................................................... 34 
5.3   Balance of payments safeguards ................................................................................. 34 
5.4   Exceptions ............................................................................................................... 34 
5.5   Accession and Withdrawal .......................................................................................... 34 
5.6   Institutio nal framework ............................................................................................. 35 
5.7   Disput e settlement ................................................................................................... 35 
5.8   Relationship with other agr eements concluded by the Parties .......................................... 36 
5.9   Government  procurement .......................................................................................... 37 
5.10   Intellectual property rights ....................................................................................... 38 
5.10.1   Competition Policy ................................................................................................ 39 
5.10.2   Trade and Labour ................................................................................................. 39 
5.10.3   Trade and Environment ......................................................................................... 40 
5.10.3.1   Cooperation on  Indigenous  Issues ....................................................................... 40 
ANNEX 1 ....................................................................................................................... . 41 
ANNEX 2 ....................................................................................................................... . 45 
 WT/REG348/1 
 
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Key Facts 
 
Parties to the Agreement:  New Zealand and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and 
Matsu 
 
Date of Signature:   10 July 2013 
 
Date of Entry into Force: 1 December 2013 
 
Date of Notification:  25 November 2013 
 
Full implementation :  1 January 2025 
 
 
1  TRADE ENVIRONMENT 
1.1  Merchandise trade 
1.1.  The Agreement (hereinafter referred to as "the Agreement") between New Zealand and the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (hereinafter referred to as 
"Chinese Taipei") on Economic Cooperation is their tenth and fifth RTA, respectively, as notified to 
the WTO.1 
1.2.  In 2012, New Zealand, with a population of 4.4 million, had a GDP estimated at 
US$167 billion; Chinese Taipei had a GDP of US$4 74 billion, and a population of 23.3 million. In 
2012, New Zealand's merchandise exports amounted to US$37 billion (representing 0.2% of global 
exports), while imports amounted to US$38 billion (0.21% of global imports). In the same year, merchandise exports from Chinese Taipei amounted to US$301 billion (1.64% of global exports), 
while imports amounted to US$270 billion (1.45%  of global imports). The structure of their 
merchandise exports and imports are considerably different, with New Zealand exporting mainly agricultural products (64.3% of total expo rts) and manufactures (22.2%) and importing 
manufactures (67.6%) and fuels and mining products (9.6%) while Chinese Taipei's exports and 
imports mainly manufactures (87% for exports and 60.2% for imports) and fuels and mining 
products (9.6% and 32.8% respectively).  
1.3.  In 2012, Chinese Taipei was New Zealand's 11
th largest merchandise trade partner and its 
13th largest source of imports. In the same year, New Zealand was Chinese Taipei's 29th largest 
merchandise export destination and its 33rd largest import source.2 
1.4.  Charts 1.1A and 1.1B show global and bila teral trends in merchandise trade for the Parties 
for the period 2000-2012. New Zealand's merchandise trade has expanded, with imports rising 
from US$13.9 billion in 2000 to US$38.1 billion in 2012, and exports from US$13.2 billion to US$37.1 billion. After falling in 2009, trade recovered, though ex ports for 2012 are down slightly 
compared to the previous year. In most of the years surveyed, New Zealand ran a slight global 
trade deficit. From 2001, Chinese Taipei's total imports and exports rose steadily with the trade 
surplus widening slightly over the period as the growth in exports outpaced that in imports. Trade fell sharply in 2009, but picked up in 2010 with imports reaching US$251.3 billion and exports 
US$273.7 billion in 2012. Bilateral trade expanded during this period with New Zealand's exports 
increasing from US$319 million in 2000 to US$668 m illion in 2012, while exports by Chinese Taipei 
to New Zealand increased from US$229 million to US$521 million over the same period. In most 
years surveyed, New Zealand has run a trade surplus in this bilateral trade. 
                                               
1 Source: WTO Regional Trade Agreement Database. 
2 Source: UN Comtrade database. WT/REG348/1 
 
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  Chart 1.1 New Zealand and Chinese Taipei: Me rchandise trade (bilateral and with world) 
0246810
050100150200250300350
2000 2002 2004 2006 2008 2010 2012A. New Zealand 
(US$ billions)
Imports from Chinese Taipei
Exports to Chinese Taipei
Total Imports
Total Exports
0246810
050100150200250300350
2000 2002 2004 2006 2008 2010 2012B. Chinese Taipei
(US$ billions)
Imports from New Zealand (Right Axis)
Exports to New Zealand (Right Axis)
Total Imports
Total Exports
 
 
Source: UNSD Comtrade database. 
1.5.  The commodity structure of trade among the Parties, as well as of their imports and exports 
to the world in the period 2010-2012, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. Over the period 2010-2012, New Zealand's four largest export product categories – live animals, prepared foods, articles of wood, and machinery – made up 62.5% of its total exports 
and accounted for 75.1% of Chinese Taipei's imports from New Zealand.
3 Over the same period, 
the four largest export product categories from Chinese Taipei – machinery, base metals, plastics, and optical equipment – made up 72.5% of its total exports and accounted for 60.7% of 
New Zealand's bilateral imports. 
                                               
3 Live animals accounted for more than half (56% ) of its imports from New Zealand in the period 
2010-2012. WT/REG348/1 
 
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  Chart 1.2 New Zealand and Chinese Taipei: product composition of merchandise trade, 
annual average (2010-2012) 
 
27
21
151175537New Zealand's imports from Chinese 
Taipei (%)
21
18
13 10755533326New Zealand's Global Imports (%)
47
108876437Chinese Taipei's
Global Exports (%)
56
111076335Chinese Taipei's imports from New 
Zealand (%)
32
25129443228Chinese Taipei's Global Imports(%)
41
976555433210New Zealand's Global Exports(%)Total: US$563 millionTotal: US$ 35 billion
Total: US$268 billion Total: US$35 billionTotal:  US$294 billion
Total: US$ 678million
Animal products
Vegetables
Prepared foodsChemicals
PlasticsWood & articles 
of woodPrecious stones
Base metalsVehicles
OpticalOther
MiscellaneousMinerals
Machinery TextilesWood pulp
 
 
Source: UNSD Comtrade database. 
1.2  Trade in services and investment 
1.6.  Services exports from New Zealand amounted to US$9.9 billion in 2012 accounting for 0.23% 
of world exports, and imports to US$11 billion  accounting for 0.26% of world imports. For 
Chinese Taipei, exports amounted to US$48.8 billio n (1.11% of world exports), and imports to 
US$42.1 billion (1.01% of world imports).4 Chart 1.3 and Table 1.1 depict the Parties' trade flows 
in services with the world and each other and by type of activity. 
1.7.  In 2012, travel services accounted for 54.9% of New Zealand's global services exports, 
followed by transport services (15.6%) and other business services (14.1%). These categories 
were also those with the largest import shares, accounting, respectively, for 30.1%, 25.6% and 
20.3% of its global services imports. In 2012, other business services accounted for 47.2% of the global services exports from Chinese Taipei, followed by travel services (24.1%) and transportation (20.5%). These categories were also those with the largest import shares, 
accounting, respectively, for 30.8%, 25.3% and 24.9%. 
                                               
4 WTO Trade Profiles. WT/REG348/1 
 
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  Chart 1.3 New Zealand and Chinese Taipei's to tal commercial services trade with world, 
2000-2012 
02468101214
2000 2002 2004 2006 2008 2010 2012A. New Zealand's imports from world
(US$ Billion) 
02468101214
2000 2002 2004 2006 2008 2010 2012B. New Zealand's exports to world
(US$ Billion) 
0102030405060
2000 2002 2004 2006 2008 2010 2012C. Chinese Taipei's imports from world
(US$ Billion) 
0102030405060
2000 2002 2004 2006 2008 2010 2012D. Chinese Taipei's exports  to world
(US$ Billion) 
 
 
Source: WTO Statistics database, New Zealand and Chinese Taipei's authorities (2010-2012). 
1.8.  In terms of bilateral trade during the period 2010-2012, New Zealand has run a trade surplus 
in most services sectors except other business services (Tables 1.1 and 1.2). In terms of 
investment, New Zealand has been a net provider of FDI in terms of both stocks and flows to Chinese Taipei.  
Table 1.1 New Zealand bilateral trade in  commercial services and investment, 
2010-2012 
in million US$ 
Services Exports Imports 
2010 2011 2012 2010 2011 2012 
Transportation services C C C C C C 
Travel 72.10 78.20 88.33 18.75 18.17 19.45 
Communications services - C 0.81 C C C 
Construction - - - - - - 
Insurance services - - - - - - 
Financial services - 0.79 0.81 1.44 C C 
Computer and information services C C C C C C 
Royalties and licence fees C - 0.81 C C - 
Other business services - 2.37 C C C 8.10 
Personal, cultural and recreational services C 0.79 C - C C WT/REG348/1 
 
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  Investment Outward Inward 
2010 2011 2012 2010 2011 2012 
FDI stocks 85.27 C C 0.63 -0.09 C 
FDI flow 8.83 C C 0.63 -0.76 C 
 
C data are confidential.  Note: Exchange rates used for converting from New Zealand dollar to US dollar were: 1.39 (2010), 1.27 
(2011) and 1.23 (2012). 
 Source: New Zealand authorities and OECD (for FDI).  
Table 1.2 Chinese Taipei's bilateral trade in commercial services and investment, 2010-
2012 
in million US$ 
Services Exports Imports 
2010 2011 2012 2010 2011 2012 
Transportation services 5.0 2.32 - 5.2 2.81 - 
Travel 14.7 18.54 - 18.5 25.50 - 
Communications services 1.0 0.97 - 1.9 2.32 - 
Construction 0.3 0.17 - - - - 
Insurance services 1.1 1.11 - 3.3 4.35 - 
Financial services 1.8 1.62 - - - - 
Computer and information services  0.17 - 1.2 1.06 - 
Royalties and licence fees 1.2 1.87 - - - - 
Other business services 51.2 45.72 - 30.5 19.30 - 
Personal, cultural and recreational services 0.3 0.33 - 1.0 1.09 - 
Investment Outward Inward 
2010 2011 2012 2010 2011 2012 
FDI stocks 6.30 6.30 6.63 32.39 104.29 104.63 
FDI flow - - 0.33 3.32 71.90 0.35 
 
Source: The authorities. 
1.9.  Chart 1.4 depicts FDI stock and flow with the world for the Parties for the period 2000-2012. 
New Zealand is a net recipient of global FDI in terms of both stocks and flows over the period 
analysed, while Chinese Taipei is a net provider. WT/REG348/1 
 
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  Chart 1.4 New Zealand and Chinese Taipei: FDI stock and flow with world, 2000-2012  
0102030405060708090
2000 2002 2004 2006 2008 2010 2012A. New Zealand's FDI stock with world
(US$ billion) 
Outward
Inward
-2-10123456
2000 2002 2004 2006 2008 2010 2012B. New Zealand's FDI flow with world
(US$ billion) 
Outward
Inward
050100150200250
2000 2002 2004 2006 2008 2010 2012C. Chinese Taipei's FDI stock with world 
(US$ billion) 
Outward
Inward
-4-202468101214
2000 2002 2004 2006 2008 2010 2012D. Chinese Taipei's FDI flow with world 
(US$ billion) 
Outward
Inward
 
 
Source: UNCTAD. 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background information 2.1.  The Agreement covers goods and services.
5 It was signed by the Parties on 10 July 2013 and 
entered into force on 1 December 2013.  
2.2.  The Agreement was notified to the WTO by the Parties on 25 November 2013 under 
Article XXIV:7(a) of GATT 1994 and Article V:7(a) of the GATS (WT/REG348/N/1 and S/C/N/715). The text of the Agreement, along with its schedules  and annexes, is available on the website of the 
Parties' authorities.
6 
2.3.  The Agreement contains 25 Chapters and eight separate Annexes (Box 2.1). Also included in 
the Agreement are implementing arrangements on Rules of Origin Operational Procedures and on 
Film and Television Co-Production. In additi on, the Parties have signed an Air Transport 
Agreement. 
                                               
5 It applies to the Separate Customs Territory of Ta iwan, Penghu, Kinmen and Matsu and to the territory 
of New Zealand, not including Tokelau. 
6 For New Zealand: http://nzcio.com/node/252 . For Chinese Taipei: http://www.moea.gov.tw/Mns/ 
english/home/English.aspx . WT/REG348/1 
 
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  Box 2.1 Structure of the Agreement 
 Preamble 
Chapter 1 Initial Provisions 
Chapter 2 Trade in Goods 
Chapter 3 Rules of Origin  
Chapter 4 Customs Procedures and Cooperation 
Chapter 5 Trade Remedies 
Chapter 6 Sanitary and Phytosanitary measures 
Chapter 7 Technical Barriers to Trade 
Chapter 8 Competition 
Chapter 9 Electronic Commerce 
Chapter 10 Intellectual Property 
Chapter 11  Government Procurement 
Chapter 12  Investment 
Chapter 13 Cross-Border trade in services 
Chapter 14 Temporary Entry of Business persons  
Chapter 15 Air Transport Services 
Chapter 16 Trade and Labour 
Chapter 17 Trade and Environment 
Chapter 18 Film and Television Co-Production 
Chapter 19 Cooperation on Indigenous Issues 
Chapter 20 Transparency 
Chapter 21 Dispute Settlement 
Chapter 22 Institutional Provisions 
Chapter 23 General Provisions 
Chapter 24 General Exceptions 
Chapter 25 Final Provisions 
Annex 1  Tariff Schedules 
Annex 2  PSR Schedule 
Annex 3 Government Procurement 
Annex 4 Non-conforming Measures 
Annex 5 Expropriation 
Annex 6 Schedules of Commitments on Temp orary Entry of Business Persons 
Annex 7 Environmental Goods List 
Annex 8 Model Rules of Procedure for Arbitral Tribunals 
 Implementing Arrangement on Rules of Origin Operational Procedures 
 Implementing Arrangement on Film  and Television Co-Production 
 Air Transport Agreement between New Zealan d and the Separate Customs Territory of 
Taiwan, Penghu, Kinmen, and Matsu 
 
Source: The Agreement. WT/REG348/1 
 
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  3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  Trade in goods between the Parties is governed by Chapter 2. The Parties agree to grant 
national treatment to each other's goods in acco rdance with Article III of GATT 1994 (Article 2). 
The Parties agree to ensure in accordance with GATT Article VIII.1 that all fees and charges of 
whatever character (other than customs duties, charges equivalent to an internal tax or other 
internal charge applied consistently with GATT Article III.2, and anti-dumping and countervailing 
duties) imposed or in connection with import and export are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation on imports or exports for fiscal purposes (Article 4). The Parties shall make available 
electronically details of the fees and charges imposed in connection with imports and exports. 
3.2.  Except in accordance with their WTO rights and obligations or in accordance with other 
provisions of the Agreement, the Parties may not adopt or maintain any non-tariff measures on 
the import of any good of the other Party (Article 5). 
3.1.2  Liberalization of trade and tariff lines 3.3.  Trade liberalization covers Chapters 1-97 of  the Harmonized System (HS). As of the entry 
into force of the Agreement, the Parties shall eliminate customs duties on originating goods of the 
other Party except as otherwise provided in the Agreement and subject to their Tariff Schedules contained in Annex 1 of the Agreement. The Parties may not increase an existing customs duty above the base rate, or adopt any new customs duty on imports of an originating good (Article 3). 
New Zealand eliminates customs duties on all orig inating goods by 2017. For Chinese Taipei, tariff 
liberalization commitments are spread ou t over a twelve year period (2013-2025). 
3.4.  Table 3.1 shows tariff and trade liberalization offered by New Zealand under the Agreement. 
In 2013, 58.3% of New Zealand's schedule was duty free on an MFN basis, corresponding to 
56.9% of its bilateral imports in 2010-2012.
7 Upon the entry into force of the Agreement, 
New Zealand liberalized 41.3% of tariff lines which accounted for an additional 40.7% of its 
bilateral imports. In 2017, New Zealand liberalizes all remaining tariff lines.  
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade 
New Zealand 
Duty phase-out 
period Number 
of lines % of total 
lines in New 
Zealand's 
tariff schedule Value of New 
Zealand's imports 
from Chinese Taipei 
(2010-2012) 
in million US$ % of New Zealand's 
total imports from 
Chinese Taipei 
2010-2012 
MFN duty free (2013) 4,381 58.3 323.3 56.9 
2013 3,100 41.3 231.3 40.7 
2017 29 0.4 13.5 2.4 
Total 7,510 100.0 568.2 100.0 
 
Note: Based on the HS 2012 nomenclature. 
 Source:  WTO estimates based on data pr ovided by the authorities and WTO-IDB. 
3.5.  As shown in Table 3.2, 29.5% of the tariff lines of Chinese Taipei were duty free on an MFN 
basis in 2013, corresponding to 23.2% of its total imports from New Zealand in 2010-2012.8 
Following the Agreement's entry into force, it libe ralized an additional 65% of lines, representing 
44% of its imports from New Zealand between 2010 and 2012. Liberalization continues until 2025 
                                               
7 Of the 7,510 tariff lines in New Zealand's schedule, 7,472 (99.49%) are subject to ad valorem  duties, 
six to specific duties, and 32 to other duties.  
8 Of the 8,928 tariff lines in Chinese Taipei's schedule, 8,757 (98.08%) are subject to ad valorem  
duties, 92 to specific duti es, and 79 to mixed duties. WT/REG348/1 
 
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  at which point 99.9% of tariff lines, correspondi ng to 100% of imports from New Zealand will be 
duty free. A total of 11 lines will remain subject to duties.  
Table 3.2 Tariff elimination commitments under the Agreement and corresponding 
average trade 
Chinese Taipei 
Duty phase-out 
period Number 
of lines % of total 
lines in the 
tariff 
schedule Value of imports 
from New Zealand 
(2010-2012) 
in million US$ % of total 
imports from 
New Zealand 
2010-2012 
MFN duty free (2013) 2,633 29.5 148.9 23.2 
2013 5,805 65.0 282.3 44.0 
2015 23 0.3 104.0 16.2 
2016 1 0.0 44.5 6.9 
2017 325 3.6 51.9 8.1 
2019 1 0.0 0.0 0.0 
2021 120 1.3 7.3 1.1 
2025 9 0.1 2.5 0.4 
Remain dutiable 11 0.1 0.0 0.0 
Total 8,928 100.0 641.4 100.0 
 
Note: Based on the HS 2012 nomenclature. 
 Source:  WTO estimates based on da ta provided by the authorities. 
3.1.3  Liberalization schedule by product 
3.6.  Table 3.3 shows New Zealand's tariff liberalization by HS section. The vast majority of lines 
are liberalized upon the Agreement's entry into force with the remainder scheduled to be liberalized in 2017. 
Table 3.3 New Zealand: Tariff eliminatio n under the Agreement, by HS Section
 
HS Section MFN average% No. of lines  MFN 2013 no. of duty-free lines  Number of duty-free lines 
under the Agreement 
2013 2017 
I 0.7 378 322 56  
II 1.0 337 269 68  
III 1.1 61 48 13  
IV 2.6 527 252 275  
V 0.4 213 198 15  
VI 0.7 951 816 135  
VII 3.1 389 153 234 2 
VIII 2.5 102 54 48  
IX 2.5 206 103 103  
X 0.0 221 221   
XI 4.2 1,045 475 561 9 
XII 5.7 105 38 67  
XIII 2.4 225 119 102 4 
XIV 1.2 68 52 16  
XV 2.6 798 394 390 14 
XVI 2.8 1,179 510 669  
XVII 3.4 232 98 134  
XVIII 1.0 234 182 52  
XIX 2.0 32 18 14  
XX 4.0 200 52 148  
XXI 0.0 7 7   
Total 2.3 7,510 4,381 3,100 29 
 
Note: Based on the HS 2012 nomenclature. 
 Source:  WTO estimates based on data pr ovided by the New Zealand authorities. 
3.7.  Table 3.4 shows Chinese Taipei's tariff liberali zation by HS section. All industrial products are 
liberalized upon entry into force of the Agreement. Agricultural products not immediately liberalized are scheduled for liberalization in 2015-2025. The majority of lines are liberalized upon WT/REG348/1 
 
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  the Agreement's entry into force with the most of  the remainder scheduled to be liberalized by 
2025. Eleven lines in HS Chapters 10 and 11 will remain dutiable (subject to specific duties) once the Agreement is fully implemented; these are rice and rice products. 
Table 3.4 Chinese Taipei: Tariff eliminat ion under the Agreement, by HS Section
 
HS 
Section MFN 
average%  No. of 
lines MFN 2013 no. 
of duty-free 
lines Number of duty-free lines under the Agreement 
Remain 
dutiable 2013 2015 2016  2017  2019 2021 2025  
I 17.8 707 66 436 21  137 1 37 9  
II 
11.9 561 165 305  1 50  29  11
* 
III 12.7 78 28 47   3     
IV 16.6 467 55 221 2  135  54   
V 1.0 231 156 75        
VI 2.6 1,427 492 935        
VII 4.8 355 12 343        
VIII 3.3 87 34 53        
IX 1.9 154 112 42        
X 0.0 182 182         
XI 8.8 1,208 47 1,161        
XII 6.0 76 7 69        
XIII 6.7 257 10 247        
XIV 0.1 76 75 1        
XV 2.6 894 530 364        
XVI 3.6 1,293 335 958        
XVII 9.0 257 58 199        
XVIII 2.6 363 162 201        
XIX 1.7 21 14 7        
XX 3.2 224 83 141        
XXI 0.0 10 10         
Total 6.4 8,928 2,633 5,805  23 1 325 1 120 9 11 
 
* contains specific duties only.  Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. Based on the HS 2012 nomenclature. 
 Source:  WTO estimates based on da ta provided by the authorities. 
3.1.4  Tariff rate quotas 
3.8.  Chinese Taipei establishes transitional TRQs on two products - liquid milk (8 lines) and deer 
velvet (1 line) under the Agreement. Over a 12 year transitional period New Zealand will have 
access to specific tariff quotas with expanding vo lumes and duty-free treatment within the quotas 
(Table A2.1). Products imported under these TRQs  are not counted towards any other tariff quotas 
provided for such goods in its WTO tariff schedule. 
3.9.  During the first 11 years following entry into force of the Agreement it shall not apply or 
maintain a safeguard measure (including a provisional or special safeguard measure) under 
GATT Article XIX, the WTO Agreement on Safeguards and Article 5 of the WTO Agreement on 
Agriculture to in-quota products imported under the TRQ. During the 12th and subsequent years 
following the Agreement's entry into force, it shall not apply a special safeguard measure under 
Article 5 of the WTO Agreement on Agriculture to  imports of liquid milk from New Zealand. 
3.10.  Treatment no less favourable than that accorded to a non-Party shall be accorded to 
New Zealand with respect to market access for liqu id milk and deer velvet. Should an agreement 
or arrangement with a non-Party be negotiated that provides for duty-free access in quantities 
greater (in absolute terms or relative to traditional trade patterns) than the TRQs established 
under the Agreement, Chinese Taipei shall enter into discussions with New Zealand to determine 
how equivalent treatment shall be extended to New Zealand. Should it negotiate an agreement or WT/REG348/1 
 
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  arrangement with a non-Party that provides for fast er liberalization of over-quota tariff rates than 
under the Agreement, such treatment shall be extended to New Zealand.9 
3.2  Rules of origin 3.11.  Chapter 3 and Annex 2 (Product Specific  Rules Schedule) concern rules of origin.  
3.12.  Article 1 sets out definitions used in the Chapter. Article 2 concerns originating goods. A 
good is considered to be originating if it is either (a) wholly obtained or produced in a Party as provided in Article 3 of Chapter 3, (b) produced entirely in one or both Parties exclusively from 
originating materials from one or both Parties, or (c) produced in one or both Parties using 
non-originating materials that conform to a change in tariff classification (CTC) requirement (as provided for in Article 4), a regional value content (RVC) requirement (as provided for in Article 5) or other requirements as specified in Annex 2.  
3.13.  Article 3 of Chapter 3 concerns goods wholly produced or obtained. It provides in 
sub-paragraphs (a)-(j) a list of goods that for the purposes of Article 2(a) are considered to be wholly produced or obtained. Article 5 of Chapter 3 sets out the formula for calculating the RVC.  
3.14.  The rules on accumulation permit originatin g goods or materials from a Party, incorporated 
into a good in the other Party, to be considered as originating in the other Party (Article 6). Article 7 describes the minimal operations and processing that are not sufficient to confer origin. 
The de minimis rules in Article 8 permit a good that does not satisfy the CTC requirement pursuant 
to Annex 2 to nonetheless be considered as originating if the value of all non-originating materials used that did not meet the CTC requirement do no t exceed 10% of the fob value of the final good 
and the good meets all other applicable requirements of the Chapter. Article 9, on direct 
consignment of goods, provides that a good will retain its originating status if the conditions set 
out in Article 9(a) direct consignment, or (b) the good has transited through a non-Party, are met. 
3.15.  Article 11 of Chapter 3 provides that with regard to the CTC requirement, accessories, spare 
parts, tools and instructional or other information materials presented with the good shall be 
considered part of the good but shall be disregarded in determining whether all the non-originating materials have undergone the applicable change in tariff classification, provided these are 
classified with and not invoiced separately fr om the good. If a good is subject to an RVC 
requirement, the value of the accessories, spare pa rts, tools and instructional or other information 
materials presented with the good shall be taken into account as originating or non-originating materials, as the case may be, in calculating th e RVC of the good. In determining whether a good 
is originating, the origin of any indirect materials shall be disregarded (Article 12).  
3.16.  Article 13 provides that the determination of whether identical and interchangeable 
materials are originating shall be made either by ph ysical segregation of the goods or by use of an 
inventory management method recognized in the generally accepted accounting principles of the 
exporting Party.  
3.17.  Section B of Chapter 3 sets out the operational procedures on the issuance and verification 
of Declarations and Certificates of Origin. A claim for preferential tariff treatment can be based on 
a written or electronic declaration or certification of origin, or other evidence to substantiate the tariff preference claimed for the goods. The declaration and certification of origin must comply with the Implementing Arrangement on Rules of Origin  Operational Procedures which is attached to 
Chapter 3. Exceptions from a declaration or certificate of origin are granted where the customs 
value does not exceed US$1,000 or equivalent, or if the importing Party has waived the requirement for such evidence. The importing Pa rty may conduct a verification of origin in 
accordance with Article 21. In the event that pref erential tariff treatment is denied, the importing 
Party must provide in writing the full reasons for the decision and the avenues available to the importer for review of the decision (Article 22). 
3.18.  Annex 2 contains the product specific rules of origin that confer originating status. The 
product specific rules applying to industrial goods provide for the most part for a change in tariff classification (CTC) at the Chapter, Heading or Su b-heading level. For some goods, an alternative 
                                               
9 Does not apply to any agreement concluded between Chinese Taipei and Singapore. WT/REG348/1 
 
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  is provided through the addition of an RVC requ irement of 40%. Processed agricultural products 
are for the most part subject to an RVC or CTC requirement, while unprocessed or wholly obtained agricultural products are subject to a CTC requirement only.  
3.3  Export duties and charges,  and quantitative restrictions 
3.19.  Except in accordance with their WTO rights and obligations or in accordance with other 
provisions of the Agreement, the Parties may not adopt or maintain any non-tariff measures on the export of any good of the other Party (Article 5). 
3.20.  Neither Party shall introduce or maintain any export subsidy on any agricultural good 
destined for the other Party. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and agree to work together toward an agreement in the 
WTO to eliminate those subsidies and prevent their reintroduction in any form (Article 6). 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 
3.21.  Chapter 6 deals with Sanitary and Phytosanitary (SPS) measures. In Article 2 the Parties set 
out the objectives of the Chapter. Article 3 provid es that the Chapter applies to all SPS measures 
of a Party that may, directly or in directly, affect trade between them.  
3.22.  In Article 4 the Parties affirm that nothing in Chapter 6 or the implementing arrangements 
shall limit the rights or obligations of the Partie s under the WTO SPS Agreement. Article 5 provides 
that the Parties may conclude implementing arrangements setting out details for the implementation of the Chapter. Article 6 provid es that the contact point for and the competent 
authorities of each Party shall be set out in an implementing arrangement.
10 Article 7 provides that 
the Parties may make determinations in relation to regionalization, pest-or disease-free areas, areas of low pest or disease prevalence, zoning and compartmentalization consistent with the SPS 
Agreement. In Article 8, the Parties recognize that the application of equivalence is an important 
tool for trade facilitation and that a determination of equivalence may be made in relation to partial or full equivalence of SPS measures an d systems. Article 8 further details how such 
determinations of equivalence may be achieved. Eq uivalence decisions are to be recorded in an 
implementing arrangement, including any additional conditions to be applied in the case of partial equivalence. 
3.23.  The Parties have the right to audit the ex porting Party's competent authority and associated 
inspection system. Audits are to be commensurate with the associated risk and designed to check 
the effectiveness of the regulatory controls of the competent authorities of the exporting Party. 
The scope of the audit may include an assessment of the competent authorities' control system, 
including reviews of inspection and verification  programmes and on-site checks. These procedures 
shall be carried out in accordance with provisions agreed and recorded in an implementing arrangement.
11 As mutually agreed, a Party may share the results and conclusions of its audits 
with non-Parties and use the results and conclusions of the audits conducted by countries not 
party to the Agreement. Articles 10 and 11 provide for certification and import checks. Notification 
procedures and the provision for the exchange of information are outlined in Articles 13 and 15. 
Provision for emergency measures is contained in Article 14.  
3.24.  The Parties establish a Joint Management Committee to facilitate bilateral trade in goods 
affected by SPS measures and to give practical effect to Chapter 6. The Committee shall meet within one year of the entry into force of the Ag reement and at least annually thereafter or as 
                                               
10 According to the Parties, a draft implementing arrangement has been agreed for Article 6, Competent 
Authorities and Contact Points, and should be signed within the next few months. 
11 According to the Parties, no other implementing arrangements have been discussed between the 
Parties at this stage (May 2014). WT/REG348/1 
 
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  mutually determined.12 The Committee may agree to establish technical working groups to identify 
and address technical and scientific issues arising from Chapter 6. 
3.4.1.2  Technical barriers to trade 3.25.  Chapter 7 concerns technical barriers to trade (TBT). The objectives of the Chapter are set 
out in Article 1. Article 3 provides that the Chapter applies to the preparation, adoption and 
application of all technical regulations, standard s, and conformity assessment procedures that may 
affect trade in goods between the Parties except (a) technical specifications prepared by 
"governmental" entities for the production or consumption requirements of such entities, and 
(b) SPS measures covered by Chapter 6. Articl e 3.4 notes that nothing in the Chapter shall 
prevent a Party from adopting or maintaining technical regulations, standards, or conformity assessment procedures in accordance with the TBT Agreement, including those necessary to fulfil a 
legitimate objective, which expressly include, inter alia, security requirements, prevention of 
deceptive practices, protection of human health or safety, animal or plant life or health or the environment.  
3.26.  Articles 1 to 9 of the TBT Agreement are in corporated into and made part of the Agreement 
mutatis mutandis . On standards, the Parties shall cooperate with each other to ensure that 
international standards, guides and recommendations that are likely to become a basis for 
technical regulations and conformity assessment procedures do not create unnecessary obstacles 
to international trade. In determining whether an international standard, guide or recommendation within the meaning of the TBT Agreement exists, th e Parties shall base their determination on the 
Decision contained in WTO document G/TBT/1/Rev.10.  
3.27.  Article 6 of Chapter 7 concerns conformity assessment procedures. Each Party shall accord 
to conformity assessment bodies located in the other Party treatment no less favourable than it accords to its own conformity assessment bodies. Further to Article 6.4 of the TBT Agreement, 
where a Party requires test results, certifications, and/or inspections as positive assurance that a 
product conforms to a standard or technical regulation, it shall not require conformity assessment bodies to be located in that Party or impose  requirements on conformity assessment bodies 
located outside that Party that would effectively require conformity assessment bodies to have a 
presence in that Party, and permits conformity assessment bodies located in the other Party to 
apply to the Party for a determination that they comply with any procedures, criteria and other conditions the Party requires to deem them competent to test or certify the product or conduct an 
inspection. A Party may at any time request information and discussion on matters pertaining to 
conformity assessment bodies in the other Party in cluding the process used to accredit, approve, 
licence or otherwise recognize conformity asse ssment bodies and their technical competence. 
Where a Party does not accept the results of a conformity assessment procedure conducted in the 
other Party, or declines to enter into negotiations for the conclusion of a mutual recognition agreement, it shall explain the reasons for its decision, upon request. 
3.28.  In Article 7 the Parties recognize that a broad range of mechanisms exist to facilitate the 
acceptance of conformity assessment results, to  support greater regulatory alignment and to 
eliminate unnecessary technical barriers to trade. They agree to intensify their exchange and collaboration on such mechanisms and to give du e consideration to a request from the other Party 
to negotiate and conclude agreements for achi eving equivalence of technical regulations. 
3.29.  In Article 8 the Parties agree to a range of measures to enhance transparency and 
information exchange on technical regulations and conformity assessment procedures. In Article 9, 
either Party may request technical discussions with the other Party to resolve any matter arising 
under Chapter 7. Such discussions are without prejud ice to the rights and obligations of the Parties 
under the Agreement's dispute settlement mechanism, the WTO Agreement, or any other 
agreement to which both Parties are party. In Article 10, the Parties establish a Committee on 
Technical Barriers to Trade through which they shall intensify their joint work in the fields of technical regulations, conformity assessment pr ocedures and standards. The TBT Committee shall 
meet within one year of the Agreement's entry into force and thereafter as agreed.
13 The 
                                               
12 According to the Parties, the Joint Management Committee has not met (as of May 2014). The Parties 
are currently discussing arrangements for meeting in the second half of 2014. 
13 According to the Parties, the Committee has not yet met (as of May 2014). WT/REG348/1 
 
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  Committee may establish working groups to carry out the functions (as detailed in Article 10) with 
which it is charged. 
3.30.  The Parties affirm the following existing bilateral arrangements: (a) the Arrangement 
Facilitating Trade in Electrical and Electronic Products (July 2005); and (b) the Regulatory 
Cooperation Arrangement on Standards, Tech nical Regulations and Conformity Assessment 
(March 2010). The Parties may conclude further implementing arrangements, including on specific product sectors of mutual interest
14 to the Parties.15  
3.4.2  Safeguard mechanisms 
3.4.2.1  Global safeguards 3.31.  The Parties maintain their rights and obligations under GATT Article XIX and the WTO 
Agreement on Safeguards (Article 1, Chapter 5). 
3.32.  A Party taking any measure pursuant to GATT Article XIX and the Agreement on Safeguards 
shall exclude imports of an originating good from the other Party from the action if such imports do not in and of themselves cause or threaten to cause serious injury (Article 2, Chapter 5).  
3.33.  A Party may at any time request consultations with the other Party on any matter arising in 
Chapter 5 (Trade Remedies). Such consultations shall be conducted through the relevant contact 
points and shall take place within 30 days of the receipt of the request, unless the Parties mutually 
determine otherwise. Any such action is without prejudice to the rights and obligations of the 
Parties under Chapter 21 (Dispute Settlement) or under the WTO DSM. 
3.4.2.2  Bilateral safeguards 3.34.  There are no provisions in the Ag reement dealing with bilateral safeguards. 
3.4.3  Anti-dumping and countervailing measures 
3.35.  The Parties maintain their rights and obligations under GATT Article VI, the WTO Agreement 
on Implementation of Article VI, and the WT O Agreement on Subsidies and Countervailing 
Measures (Article 1, Chapter 5). 
3.4.4  Subsidies and State-aid 3.36.  The Parties maintain their rights and obligations under the WTO Agreement on Subsidies 
and Countervailing Measures (Article 1, Chapter 5). 
3.4.5  Customs-related procedures 3.37.  Chapter 4 sets out the provisions on customs procedures and cooperation. Customs 
procedures of the Parties shall conform wher e possible to the standards and recommended 
practices of the World Customs Organization (Artic le 3). The Parties shall provide a single point, 
electronic or otherwise through which its traders may submit all required information in order to obtain clearance of goods.  
3.38.  The Parties shall determine the customs valu e of goods traded between them in accordance 
with the provisions of GATT Article VII and th e Customs Valuation Agreement (Article 4). The 
Parties shall provide for written advance rulings in respect of tariff classification and origin of 
goods to be issued to importers in their "jurisdi ction", or to exporters or producers in the other 
Party and shall adopt or maintain procedures in order to issue such written advance rulings (Article 6). Rulings shall be made within 40 days with respect to tariff classification and 90 days with respect to origin of goods. 
                                               
14 The interests of Chinese Taipei in that regard include medical devices and pharmaceuticals.  
15 According to the Parties, no arrangements have been concluded (as of May 2014). WT/REG348/1 
 
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  3.39.  The Parties shall adopt or maintain procedures which allow goods to be released within 
48 hours of arrival unless certain conditions prevail. With regard to risk management, the Parties shall administer customs procedures to facilitate the clearance of low-risk goods and focus on high-risk goods (Article 10). The Parties shall provide for the right of appeal without penalty in 
regard to customs administrative rulings, determinations or decisions by the importer, exporter or 
any other affected person. The Parties agree to cooperate and consult on customs-related procedures and to establish one or more enquiry points. Either customs administration may at any 
time request consultations with the other customs administration on any matter arising from the 
operation of implementation of Chapter 4. Such  consultations shall be conducted through the 
relevant contact points and shall take place within 30 days of the request, unless otherwise agreed (Article 13). Each customs administration shall make available all customs laws, regulations and 
any administrative procedures it applies or enforces on the internet and through any other media 
as appropriate. 
4  PROVISIONS ON CROSS BORDER TR ADE IN SERVICES AND INVESTMENT 
4.1  Scope and definitions 
4.2  Cross Border Trade in Services 4.1.  Chapter 13 covers measures adopted or main tained by a Party affecting cross border trade in 
services (CBTS) by service suppliers of the other Party. These include measures affecting: (i) the 
purchase, payment or use of a service; (ii) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally; and 
(iii) the presence of natural persons of a Party for the supply of a service in the other Party. This 
Chapter includes Annexes 4:I and 4:II which contain the Parties' lists of non-conforming measures 
(exceptions from the core disciplines of the CB TS and Investment chapters). Chapter 14 on the 
Temporary Entry of Business Persons sits alongside the CBTS and Investment Chapters. 
4.2.  Under the Agreement, CBTS means the supply of  a service: (i) from the "jurisdiction" of one 
Party to the "jurisdiction" of the other Party (mode 1); (ii) in the "jurisdiction" of one Party to the service consumer of the other Party (mode 2); or (iii) by a service provider of one Party through 
presence of natural persons of a Party in the "jur isdiction" of the other Party (mode 4). CBTS does 
not include the supply of a service in a Party by an investor of the other Party or a covered investment as defined in Article 2 of Chapter 12 (Investment). 
4.3.  Chapter 13 does not apply to government procurement; services supplied in the exercise of 
governmental authority; subsidies or grants provided by a Party, including government-supported 
loans, guarantees and insurance, except as provided for in Article 14 of Chapter 13 (subsidies)
16; 
measures affecting natural persons of a Party seeking access to employment or the employment 
market of a Party. In addition, the Chapter does not apply to measures affecting air transport 
services or related services in support of air services other than aircraft repair and maintenance services; the selling and marketing of air tran sport services; computer reservation system 
services; speciality air services; and ground handling services (Article 2).  
4.4.  The Parties agree to consult within two years of the Agreement's entry into force and at least 
every three years thereafter, or as otherwise agre ed, to review the implementation of the Chapter 
on CBTS and to consider other trade in services issues of mutual interest, with a view to the 
progressive liberalization of trade in services between them on a mutually advantageous basis 
(Article 9, Chapter 13). 
4.3  Investment 
4.5.  Chapter 12 on investment applies to measures adopted or maintained by a Party relating to: 
(i) investors of the other Party
17; (ii) covered investments18; and, (iii) all investments in the Party 
                                               
16 See section on Subsidies below. 
17 "Investor of a Party" is defi ned in Article 2, Chapter 12. 
18 According to Article 2, "investment" means every ki nd of asset that an investor owns or controls, 
directly or indirectly, that has the characteristics of an investment, including such characteristics as the 
commitment of capital or other resources, the expectation of gain or profit, or the assumption of risk. This may 
take different forms, including: an enterprise; shares; bonds; rights under contracts; claims to money or to WT/REG348/1 
 
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  with regard to disciplines on performance requirements (Article 7). The Chapter does not bind 
either Party in relation to any act or fact that took place or ceased to exist before the Agreement's entry into force. The investment Chapter does not apply to services supplied in the exercise of governmental authority.  
4.6.  In the event of an inconsistency between the investment Chapter and another Chapter of the 
Agreement, the latter prevails to the extent of the inconsistency. 
4.7.  The Parties' lists of non-conforming measures are set out in Annexes 4:I and 4:II. The key 
obligations of national treatment, MFN treatment, performance requirements and senior 
management and boards of directors do not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors, or activiti es as set on in that Annex. National and MFN 
treatment do not apply to any measure that is an exception to, or a derogation from, a Party's 
obligations under the TRIPS Agreement. The obligat ions of national treatment, MFN treatment and 
senior management and boards of directors do no t apply to government procurement or subsidies 
or grants provided by a Party, including government-supported loans, guarantees, and insurance. 
4.8.  The Parties shall accord to covered investments treatment in accordance with the customary 
international law minimum standard of treatment, including fair and equitable treatment and full protection and security.  
4.9.  Nothing in Chapter 12 shall be construed to prevent either Party from adopting, maintaining 
or enforcing any measure otherwise consistent with the Chapter that it considers appropriate to ensure that investment activity is undertaken in a manner sensitive to environmental concerns (Article 16). 
4.4  Denial of benefits 
4.10.  A Party may deny the benefits of Chapter 13 (CBTS) to a service provider of the other Party 
where the Party establishes that the service is be ing supplied by an enterprise that is owned or 
controlled by persons of a non-Party and the enterprise has no substantive business operations in 
the other Party, or the service is being supplied by  an enterprise that is owned or controlled by 
persons of the denying Party and the enterprise has no substantive business operations in the 
other Party. 
4.11.  A Party may deny the benefits of Chapter 12 (Investment) to an investor of the other Party 
where the investment is being made by an enterprise that is owned or controlled by persons of a non-Party and the enterprise has no substantive business operations in the other Party; or 
investors of the other Party where the investment is  being made by an enterprise that is owned or 
controlled by persons of the denying Party and the enterprise has no substantive business operations in the other Party. 
4.12.  In both cases, the denial of benefits shal l only occur if prior notification and consultation 
have taken place. 
4.5  General provisions on trade in services 
4.13.  Chapters 12 and 13 contain a number of  core disciplines (Market Access, National 
Treatment, MFN, Local Presence, Senior Management and Boards of Directors and Performance Requirements) which are subject to the sched uling of non-conforming measures. As a 
consequence, these obligations apply fully, unless reservations are listed in Annex 4:I or 4:II (and 
unless other exceptions in the Agreement apply). Annex 4:I represents a standstill commitment as 
a Party will be able to maintain, review, or ev en amend the measures listed there, but not make 
them more restrictive. By contrast, Annex 4:II contains the specific sectors where the Parties may 
adopt or maintain new or even more restrictive measures. 
                                                                                                                                               
any contractual performance related to a business or having an economic value; intellectual property rights 
and goodwill; rights conferred pursuant to law or contract such as concessions, licences, authorisations and 
permits; and other tangible and inta ngible, movable and immovable property  and any related property rights, 
such as leases, mortgages, liens and pledges.  WT/REG348/1 
 
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  4.5.1  Market access 
4.14.  The Parties grant each other access to their respective markets for their services and 
service suppliers through Article 4 of Chapter 13. The types of limitations the Parties may not adopt or maintain mirror those in Article XVI of GATS, with the exception of the limitation on 
capital participation by investors of the other Party, which is captured in the national treatment 
and MFN provisions of Chapter 12 on investment. The Parties inscribe limitations and exceptions to the Market Access obligation in their Schedules of non-conforming measures (Annexes 4:I and 
4:II) The Market Access obligation must be read together with a negative list of non-conforming 
measures in Annex 4 of the Agreement. Under Annex 4:II New Zealand reserves the right to adopt or maintain any measure that is not inconsistent with its obligations under Article XVI of the GATS. 
4.5.2  National treatment and MFN 
4.15.  Each Party shall accord to services and service providers of the other Party treatment no 
less favourable than it accords, in like circumst ances, to its own services and service providers 
(National Treatment), and to services and serv ice providers of any non-Party (MFN treatment), 
pursuant to Articles 5 and 6 of Chapter 13 respectively. 
4.16.  Nonetheless, the Parties reserve the right to adopt or maintain any measure that accords 
differential treatment to non-Parties under any bilateral or multilateral international agreement in 
force or signed prior to the date of entry into fo rce of the Agreement, in respect of agreements on 
the liberalization of trade in goods or services or investment, including any measures taken as part of a wider process of economic integration or trade liberalization between the parties to such agreements. The Parties also reserve the right to adopt or maintain any measure that accords 
differential treatment to non-Parties under any international agreement in force or signed after the 
date of entry into force of the Agreement involving fisheries, maritime matters, or aviation.  
4.17.  With regard to investment, a Party shall a ccord to investors of the other Party and covered 
investments treatment no less favourable than it accords, in like circumstances, to its own 
investors and to investments of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments 
(Article 5, Chapter 12).  
4.18.  Article 15 of Chapter 12 provides that nothing in Article 5 (National Treatment) shall be 
construed to prevent a Party from adopting or maintaining a measure that prescribes special formalities in connection with covered investments, such as residency requirements for registration 
or a requirement that covered investments be legally constituted under the laws or regulations of 
the Party, provided that such formalities do not materially impair the protections afforded by a Party to investors of the other Party and covere d investments. A Party may however require an 
investor of the other Party or a covered investment, to provide information concerning that 
investment solely for informational or statistical purposes. 
4.19.  Each Party shall accord to investors of the other Party and covered investments treatment 
no less favourable than it accords, in like circumstances, to investors of any non-Party and to 
investments of investors of a non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments (Article 6, Chapter 12). The provision of MFN treatment with regard to investment does not apply to dispute 
resolution procedures other than those set out in  the Agreement. The Parties reserve the right to 
adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or si gned prior to the date of entry into force of the 
Agreement. The Parties reserve the right to adopt or maintain any measure that accords 
differential treatment to countries under any international agreement in force or signed after the date of entry into force of the Agreement involving fisheries, maritime matters or aviation. 
4.20.  Articles 5 (National Treatment) and 6 (MFN Treatment) of Chapter 12 do not apply to any 
measure that is an exception to, or derogation from, a Party's obligations under the TRIPS Agreement. Articles 5 (National Treatment), 6 (MFN Treatment) and 8 (Senior Management and 
Boards of Directors) of Chapter 12 do not appl y to government procurement, or subsidies or 
grants provided by a Party, including governme nt-supported loans, guarantees, and insurance. WT/REG348/1 
 
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  4.5.3  Local Presence 
4.21.  According to Article 7 of Chapter 13 (CBTS), neither Party may require a service supplier of 
the other Party to establish or maintain a representative office or any form of enterprise, or to be resident in its "jurisdiction" as a condition for the supply of cross-border trade in services. 
4.5.4  Performance Requirements 
4.22.  In connection with the establishment, acquisition, expansion, management, conduct, 
operation, or sale or other disposition of an investment of an investor of a Party or of a non-Party, 
the Parties may not impose or enforce performance requirements  (Chapter 12, Article 7) , 
inter alia , on export performance; domestic content requirements; purchase, or use of 
domestically produced goods; foreign exchange inflows requirements; restrictions on sales of 
goods or services based on the volume or value of their export or foreign exchange earnings; 
technology transfer
19; or exclusive supply. 
4.23.  Neither Party may condition the receipt or continued receipt of an advantage in connection 
with the establishment, acquisition, expansion, ma nagement, conduct, operation, or sale or other 
disposition of an investment of an investor of a Party or of a non-Party, on local content, purchase, 
or use of locally produced goods, foreign exch ange inflows, or foreign exchange earnings 
(Chapter 12, Article 7).20  
4.24.  The prohibition on most performance requirements does not apply to qualification 
requirements for goods or services with respect to export promotion and foreign aid programmes, 
to government procurement, and to requirements imposed by an importing Party relating to the content of goods necessary to qualify for preferential tariffs or quotas (Chapter 12, Article 7.3). 
4.5.5  Senior Management and Boards of Directors 
4.25.  Neither Party may require that an enterprise  o f  t ha t  P a r t y ,  t h at  i s  a  c o v e r e d  i n v e s t m e n t  
appoint to senior management positions natural persons of any particular nationality. Neither Party 
may require that a majority of the board of directors, or any committee thereof, of an enterprise of 
that Party that is a covered investment, be of a particular nationality, or resident in the Party. Neither Party may require that less than a majority of the board of directors, or any committee 
thereof, of an enterprise of that Party that is a covered investment, be of a particular nationality, 
or resident in the Party, where that requirement wo uld materially impair the ability of the investor 
to exercise control over its investment (Article 8, Chapter 12).  
4.6  Other investment-related provisions 
4.26.  Neither Party shall "nationalize", exprop riate or subject to measures equivalent to 
"nationalization" or expropriation a covered investment except for public purpose; in a non-discriminatory manner; on payment of prompt, adequate and effective compensation; and in 
accordance with due process of law (Article 13, Chapter 12). Article 13 does not apply to the 
issuance of compulsory licences granted in relation to IPRs in accordance with the TRIPS Agreement, or to the revocation, limitation or creation of IPRs, consistent with Chapter 10 
(Intellectual Property). The investment chapter also includes an annex on indirect expropriation 
(Annex 5) which provides elaboration on indirect expropriation and which clarifies , inter alia , that 
except in rare circumstances measures taken in the exercise of a Party's regulatory powers as may be reasonably justified in the protection of the public welfare, including public health, safety and 
the environment, shall not constitute an indirect expropriation. 
                                               
19 Does not apply when a Party authorizes use of an  IPR in accordance with Article 31 of the TRIPS 
Agreement or amendment, or to measures requiring the disclosure of proprietary in formation that fall within 
the scope of and are consistent with Article 39 of the TR IPS Agreement, or when the requirement is imposed or 
enforced by a court, administrative tribunal to remedy a practice determined to be anticompetitive under the Party's competition laws. 
20 Exceptions to certain provisions of Article 7 are ma de in the case of export promotion and foreign aid 
programmes, government procurement an d requirements relating to domestic content requirements necessary 
to qualify for preferential tariff treatment or preferential quotas. WT/REG348/1 
 
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  4.27.  The Parties shall permit all transfers into and out of their "jurisdiction" relating to a covered 
investment to be made freely and without delay in  a freely usable currency at the market rate of 
exchange at the time of transfer (Article 12, Chapter 12). 
4.28.  Articles 11 and 14 of Chapter 12 deal respectively with treatment in case of armed conflict 
or civil strife and subrogation. 
4.29.  Section B of Chapter 12 provides for an investor-Party dispute settlement mechanism which 
can only be employed where the Party consents to having a claim brought against it. 
4.7  Movement of natural persons 
4.30.  Chapter 14 governs the temporary entry of business persons. The objectives of the Chapter 
are to facilitate the movement of business persons engaged in the conduct of trade and investment between the Parties, and to establish streamlined and transparent procedures for 
applications made by business persons of the other Party, while recognizing the need of a Party to 
ensure its security and to protect its domestic labour force and employment. 
4.31.  The scope of the Chapter extends to measures affecting the temporary entry and stay of 
business persons of one Party into the other Party including business visitors, intra-corporate 
transferees, installers or servicers, and independ ent professionals. The Chapter does not apply to 
measures affecting natural persons of a Party seeking access to the employment market of the 
other Party, nor to measures regarding reside nce, or employment on a permanent basis. 
Definitions used in the Chapter are set out in Article 3. In accordance with its Annex 6 commitments, Article 5 requires each Party to grant temporary entry or extension of temporary stay in accordance with Annex 6, provided the business persons (a) follow prescribed application 
procedures for the immigration formality sought, and (b) meet all relevant eligibility requirements 
for entry to the relevant Party.  
4.32.  The Parties' commitments in respect of the temporary entry of business persons are set out 
below in Tables 4.1 and 4.2. 
Table 4.1 New Zealand's commitments on mode 4 
Category Migratory Condition Length of Stay 
Business Visitor Business Vi sitor for business purposes 
(defined in Annex 6) Aggregate 3 months stay in any 
calendar year. 
Intra-Corporate Transferee Senior manager,  
specialist (defined in Annex 6) Maximum 3 years 
 
Installers or Servicers Defined in Article 3 of Chapter 14 Maximum 3 month entry in any 
12 months 
Independent Professional Only in respect of services sectors set 
out in New Zealand's Schedule of 
Specific Commitments in the WTO and 
the service sectors set out in Annex 6, 
subject to economic needs tests Maximum stay 12 months 
 
Source: Chapter 14 and New Zealand's Annex 6 Schedu le of Temporary Entry of Business Persons. 
Table 4.2 Chinese Taipei's commitments on mode 4 
Category Migratory Condition Length of Stay 
Business Visitor Business Visitor for business purposes 
(defined in Annex 6) No more than 90 days. 
Intra-Corporate Transferee Responsible person, 
Senior manager or  
specialist (defined in Annex 6) Maximum 3 years that may be 
renewed for one-year periods 
indefinitely 
Installers/Servicers Defined in Article 3 of Chapter 14 No more than 90 days WT/REG348/1 
 
- 23 - 
 
  Category Migratory Condition Length of Stay 
Independent Professional Only in respect of services sectors set out 
in the Schedule of Specific Commitments 
in the WTO, subject to economic needs 
tests.  
New Zealand licensed lawyer for provision 
of advice on New Zealand law and the 
practice of international law, subject to 
economic needs test. Maximum stay one year 
 
 
 
Multiple periods, each no more than 
30 days 
 
Source: Chapter 14 and the Annex 6 Schedule of Temporary Entry of Business Persons. 
4.33.  New Zealand reserves the right to adopt or maintain any measure in cases of 
labour/management disputes, and also with respect to ships' crews. With respect to audiovisual 
services, the New Zealand immigration instructions, authorised under the Immigration Act 2009, stipulates a special procedure for the granting of  visas to entertainers, performing artists and 
associated support personnel for work purposes. To  be eligible for a work visa or work permit, 
such applicants must come within the policy guidelines agreed to between the Minister of Immigration, independent promoters, agents or producers and the relevant performing artists' 
unions.  
4.34.  Chinese Taipei reserves the right to adopt or maintain any measure in cases of 
labour/management disputes. 
4.35.  The Parties agree to designate contact points to facilitate communication and the effective 
implementation of the Chapter. They agree to pub lish promptly on the internet where possible, or 
if not, otherwise make publicly available the requirements for temporary entry, explanatory 
material on all relevant immigration formalities and any modifications or amendments to any 
requirements for temporary entry. 
4.36.  Article 8 of the Chapter on the applicatio n of dispute settlement procedures provides that 
the Parties shall endeavour to settle any differences arising through consultations. A Party may not 
use the dispute settlement mechanism set out in Chapter 21 unless (a) the matter involves a 
pattern of practice, and (b) the business persons affected have exhausted all available domestic 
remedies.  
4.8  Liberalization commitments 
4.37.   Both Chapter 12 on Investment and Chapter 13 on CBTS follow a negative-list approach 
which implies that, with respect to the core discipl ines of Market Access, National Treatment, Most 
Favoured Nation Treatment, Local Presence, Senior Management and Boards of Directors and 
Performance Requirements all sectors or sub-sectors are assumed to be open to competition from 
services suppliers or investors of the other Party,  unless otherwise specified in Annex 4:I or 4:II. 
4.38.  As a consequence, the obligations of national and MFN treatment, market access and 
liberalization of local presence requirements apply fully to CBTS between the Parties in all sectors, 
unless reservations are listed in Annexes 4:I or 4:II.
21 Annex I represents a standstill commitment 
as a Party will be able to maintain, review, or even amend the measures listed there, but not make 
them more restrictive. By contrast, Annex 4:II contains the specific sectors where the Parties may 
adopt or maintain new or even more restrictive measures. 
4.39.  Similarly, national and MFN treatment as well as liberalization from performance 
requirements, and senior management and board of  director requirements will fully apply to 
investment-related matters in all sectors, except for the reservations contained in Annex 4:I and 
4:II.22 
4.40.  The Parties agree to consult within two years of the Agreement's entry into force and at 
least every three years thereafter, or as otherwis e agreed to review implementation and consider 
                                               
21 Any existing non-conforming measures at the region al or local level of government are bound, but not 
listed under Annex 4:I (Chapter 13, Article 8). 
22 Any existing non-conforming measures at the region al or local level of government are bound, but not 
listed under Annex 4:I (Chapter 12, Article 9). WT/REG348/1 
 
- 24 - 
 
  other trade in services issues of mutual interest with a view to the progressive liberalization of 
trade in services between them on a mutually advantageous basis. 
4.8.1  Chinese Taipei 4.41.  Under Annex 4:I, it has listed 35 reservations for existing measures, of which one is 
horizontal. It also listed nine Annex 4:II reservations, five of which are horizontal. 
4.42.  The following sections refer to its horizontal and sector-specific commitments and 
liberalization. 
4.8.1.1  Horizontal commitments 
4.43.  As in its GATS schedule, Chinese Taipei maintains a mode 3 national treatment reservation 
on the leasing or ownership of land for certain uses and in certain areas. Likewise, those lands cannot be used as collateral by persons from Chin ese Taipei to "foreigner s". Under the Agreement, 
"foreigners" are allowed to acquire land in Chinese Taipei for self-use, investment or public welfare 
purposes provided that such land  is used for certain purposes.
23 
4.44.  Under future Annex 4:II reservations, it ha s scheduled nine reservations of which five are 
horizontal and which permit it to adopt or maintain measures with regard to the following: 
provision of law enforcement and correctional servic es and certain services to the extent they are 
social services established or maintained for a public purpose24; rights or preferences granted to 
its indigenous peoples; rights or preferences granted to minorities with social or economic 
disadvantages; the production, use, distribution  and retail of nuclear energy; and existing 
restrictions on investment and CBTS by persons of a non-Party or investors or service suppliers owned or controlled by persons of a non-Party. 
4.8.1.2  Sector-specific commitments 
4.45.  Table 4.3 compares the degree of liberaliz ation (modes 1-3) by sector in the Agreement 
with that in Chinese Taipei's GATS Schedule. In particular, it indicates whether for a given 
subsector the sectoral commitments in the Agreement (except as indicated in the horizontal 
reservations) are improved or the same as those in the GATS.
25 
Table 4.3 Chinese Taipei: comparison betwee n GATS and the Agreement sector-specific 
commitments in trade in services (excluding mode 4)  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to the 
GATS, sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) 
are: Sector-specific 
reservations 
(or provisions) 
specified in 
1. Business services  partial improved  Annex 4:I  
A. Professional Services  partial improved  
B. Computer and Related Services  full same  
C. Research and Development Services  full same  
D. Real Estate Services  partial improved  
E. Rental/Leasing Services without Operators  partial improved  
F. Other Business Services  partial similar  
2. Communication services  partial improved Annex 4:I and 4:II 
A. Postal services  -- improved  
B. Courier services  partial improved  
                                               
23 These include residences, business operations, churches, hospitals, "foreign" schools, embassies or 
consulates, public welfare institutions offices, ce meteries, or other uses th at have been approved. 
24 I n c o m e  s e c u r i t y  o r  i n s u r a n c e ,  s o c i a l  s e c u r i t y  o r  i n s u r a n c e ,  s o c i a l  w e l f a r e ,  p u b l i c  e d u c a t i o n ,  p u b l i c  
training, health, child care, public sewage services. 
25 This Factual Presentation follows the WTO Services Sector Classification list, which is based on the UN 
Central Product Classification (CPC) and consists of 12 subsectors (WTO document MTN.GNS/W/120). WT/REG348/1 
 
- 25 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to the 
GATS, sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) 
are: Sector-specific 
reservations 
(or provisions) 
specified in 
C. Telecommunication services  partial Improved  
D. Audiovisual services partial Improved  
E. Other  -- Improved  
3. Construction & related engineering services  partial full - 
A. General construction work for buildings  partial full  
B. General construction work for civil engineering  partial full  
C. Installation and assembly work  partial full  
D. Building completion and finishing work  partial full  
E. Other  partial full  
4. Distribution services  partial full - 
A. Commission agents' services  full full  
B. Wholesale trade services  partial full  
C. Retailing services  partial full  
D. Franchising  full full  
E. Other -- full  
5. Educational services  partial improved Annex 4:I 
A. Primary education services  -- partial  
B. Secondary education services  partial partial  
C. Higher education services  partial improved  
D. Adult education  partial improved  
E. Other education services  partial improved  
6. Environmental services  partial improved Annex 4:I and 4:II 
A. Sewage services  partial Improved   
B. Refuse disposal services  partial Improved   
C. Sanitation and similar services  partial Improved   
D. Other partial Improved   
7. Financial services partia l Improved Annex 4:I and 4:II 
A. All insurance and insurance-related services  partial Same  
B. Banking and other financial services partial Improved  
C. Securities and futures partial Same  
8. Health related and social services partial Improved Annex 4:I and 4:II 
A. Hospital services partial Improved  
B. Other Human Health Services  -- Improved  
C. Social Services  -- --  
D. Other partial Improved  
9. Tourism and travel related services  partial Full - 
A. Hotels and restaurants (including catering)  partial Full  
B. Travel agencies and tour operators services  full Full  
C. Tourist guides services  partial Full  
D. Other -- Full  
10. Recreational, cultural and sporting se rvices partial Improved Annex 4:I and 4:II 
A. Entertainment services  -- Partial  
B. News agency services  full Same  
C. Libraries, archives, museums and other cultural 
services  -- Partial  
D. Sporting and other recreational services  partial Improved  
E. Other  -- Partial  
11. Transport services  partial Improved Annex 4:I and 4:II 
A. Maritime Transport Services  -- Partial  
B. Internal Waterways Transport -- Partial  
C. Air Transport Services  partial Improved  
D. Space Transport  -- Full  
E. Rail Transport Services  partial Similar  WT/REG348/1 
 
- 26 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to the 
GATS, sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) 
are: Sector-specific 
reservations 
(or provisions) 
specified in 
F. Road Transport Services partial Similar  
G. Pipeline Transport  -- Full  
H. Services auxiliary to all modes of transport  partial Full  
I. Other Transport Services  -- Full  
12. Other services not included elsewhere     
 
Note: 'Improved' means commitments that go beyond the GATS as regards market access or national 
treatment, under any of the three modes. 'Similar'  means commitments that do not go beyond the 
GATS. 'Partial' means commitments that, under th e GATS, are subject to some sector-specific 
limitation(s) under market access or national treatment, under any of the three modes. 
 -- No commitments.   Source: Schedule of Specific Commitments under the GATS (GATS/SC/136/Rev.1) and relevant section of 
Annex 4:I and 4:II of the Agreement. 
 
4.46.  In business services, commitments are broa der compared to its GATS schedule, although 
some reservations remain and new ones are introduced such as local presence requirements for 
professional services and for real estate services subsectors, which are not scheduled under the GATS. Reservations in legal services; accounting, auditing and book keeping services; and taxation 
services mirror the partial commitments scheduled under the GATS, thus opening up other forms 
of these services. New reservations, not contained in its GATS schedule have been added on mining, agriculture, animal husbandry, forestry, and logging.
26 New subsectors such as medical 
and dental services and services provided by mi dwives, nurses, physiotherapists and para-medical 
personnel that do not appear in its GATS Schedule are not subject to restriction under the Agreement.  
4.47.  In communication services, the business of delivering letters, postcards or other 
correspondence is reserved to a state-owned company under the Agreement. No commitments are 
made in postal services in the GATS. Concerning telecommunication services, the limit for total direct shareholding by "foreigners" has been  raised to 49% (from 20% under the GATS) and 
specified shareholding limits in the state-owned company Chunghwa Telecom. Investment ceilings 
on "foreign" mobile satellite service operators in the GATS have been relaxed under the Agreement 
which permits such operators to provide service by entering into cooperative agreements with 
domestic companies. In its GATS Schedule ther e are no commitments on radio and television 
transmission services, while radio and television services are subject to domestic content requirements. Under the Agreement, a future meas ure has been scheduled for radio and television 
broadcast services reserving the right to adopt or  maintain any measure relating to broadcasting 
services in its "territory", to international broadcasting services originating from Chinese Taipei, 
and to the allocation of spectrum in relation to broadcasting services.  
4.48.  Commitments in construction and related engineering services have been improved. The 
Agreement covers mode 1 while in its GATS schedule it is unbound. In distribution services, there 
are no commitments in the GATS for wholesale an d retailing services for firearms and military 
equipment; under the Agreement no reservations are scheduled, thus liberalizing the subsector. In 
education services, the establishment of a maximum of two for-profit "foreign" national primary 
and secondary schools by New Zealand are permitted. In adult and other education the restrictions on board composition in the GATS Schedule have been relaxed under the Agreement, though the latter restricts "foreign" persons from serving as a local manager for institutions providing adult 
and/or other education services. 
                                               
26 CBTS and investment in fisheries and aquaculture ar e restricted. Foreign investment is not allowed in 
forestry, wood logging and hunting and is conditionall y restricted in agricultur e and animal husbandry. WT/REG348/1 
 
- 27 - 
 
  4.49.  Two reservations are scheduled relating to water, limiting investment in water rights and 
reserving water supply. Under future measur es, any future measure may be adopted or 
maintained with respect to the provision of public sewage services. 
4.50.  In the GATS Schedule, there are no limitations on modes 1-3 in reinsurance and 
retrocession services and insurance auxiliary services. Under the Agreement, commitments in 
CBTS and investment in the insurance sector remain as liberal as in the GATS schedule. In its GATS Schedule, mode 1 is unbound for all listed banking subsectors listed, while there is no 
limitation on mode 1 in securities and futures for the provision and transfer of financial information 
and financial data processing and related software. Under the Agreement, CBTS in banking subsectors is dependent upon prior approval and acquisition of the relevant business licences from the competent authorities. Banking services may only be provided through certain institutions; in 
addition to those mentioned in its GATS Schedule, trust companies and issuers of stored value 
cards have been added in the Agreement. A future measure on financial services for CBTS and investment has been scheduled permitting the adoption or maintenance of any measure that 
accords differential treatment to countries under a bilateral or multilateral international agreement 
that comes into force after the Agreement's entry into force. 
4.51.  In health related and social services, there are investment and board composition 
reservations related to hospitals and clinics. The right to adopt or maintain any measure related to 
social services for a public purpose is reserved.  
4.52.  There are no reservations in tourism and trav el related services thus liberalizing this sector 
entirely for modes 1-3. In recreational, cultural and sporting services, commitments have been 
expanded to entertainment, libraries, archives, museums and other cultural services, for which 
there are no GATS commitments, subject to certain reservations. For games of luck and chance it 
sets out a future measure with regard to CBTS and investment. 
4.53.  Unlike in the GATS, commitments have been extended to maritime, internal waterways, 
space and pipeline transport services while establishing thresholds for investment and board composition in maritime services, and the operation of internal waterways transport is not 
permitted unless approved by the competent authorities. It also adds new restrictions, not 
included in its GATS schedule prohibiting investment in rail services. Certain air transport services have been liberalized
27, subject however to a number of restrictions including investment 
thresholds and board composition in airfield operation and management; shareholding limits and 
board composition in private airport terminal companies; investment thresholds and prescriptions 
on the juridical form of airport ground handling services companies or catering service companies; and restrictions on the juridical form and investment thresholds in speciality air services. A future 
measure has also been scheduled with regard to CBTS in air transportation ground handling 
services.  
4.8.2  New Zealand 
4.54.  Under Annex 4:I, New Zealand has listed eigh t reservations, of which one is horizontal. It 
also listed 29 Annex 4:II reservations, nine of which are horizontal in nature. 
4.55.  The following sections refer to New Zealand's horizontal and sector-specific commitments 
and liberalization. 
4.8.2.1  Horizontal commitments 
4.56.  In its GATS schedule, New Zealand requires that certain investment activities receive prior 
approval.
28 Under the Agreement, certain overseas non-issuer companies are required to file 
audited financial statements with the Registrar of Companies.  
                                               
27 The Agreement does not apply to measures affectin g air transport services or related services in 
support of air services other than ai rcraft repair and maintenance servic es; the selling and marketing of air 
transport services; computer reservation system serv ices; speciality air services; and ground handling 
services. 
28 New Zealand has taken a broadly similar future me asure which requires prior approval for entities 
with asset values of NZ$20 million (NZ$10 million unde r GATS). Under the Agreement, the acquisition or WT/REG348/1 
 
- 28 - 
 
  4.57.  Under Annex 4:II measures, New Zealand has scheduled 29 reservations, of which nine are 
horizontal. The latter relate to the provision of public law enforcement and correctional services and social services for a public purpose; the allo cation, collection, treatment and distribution of 
drinking water; services provided in the exercise of governmental authority; the sale of shares or 
assets in government controlled or owned enterprises; measures not inconsistent with 
New Zealand's obligations under Article XVI of th e GATS; prior approval of certain investment 
activities; the control, management or use of protected areas or species; nationality or residency 
measures in relation to animal welfare and the preservation of plant, animal and human life and 
health; and measures in respect of the foreshore and seabed, internal waters, territorial sea, the 
Exclusive Economic Zone and the continental shelf. 
4.8.2.2  Sector-specific commitments 
4.58.  Table 4.4 compares the degree of liberaliz ation (modes 1-3) by sector in the Agreement 
with that in New Zealand's GATS Schedule. In particular, it indicates whether for a given subsector the sectoral commitments in the Agreement (except as indicated in the horizontal reservations) 
are improved or the same as those in the GATS.
29 
4.59.  In business services, New Zealand's commitments are broader compared to its GATS 
schedule. For legal services and taxation services, New Zealand's commitments under the 
Agreement are more extensive than the GATS. Subsec tors such as integrated engineering services 
and urban planning and landscape architectural services for which it has no commitments under the GATS are not subject to reservations under th e Agreement, thus resulting in liberalization.  
4.60.  New Zealand has fully liberalized computer and related services under the Agreement. 
Research and development services, not scheduled  by New Zealand under the GATS, are partially 
liberalized, but remain subject to a future measure with respect to R&D services carried out by state funded institutions when such research is conducted for public purpose. In addition, 
New Zealand retains the right to adopt or maintain any measure with regard to research and 
experimental development services (CPC 8510). Rental/leasing services without operators, partially liberalized under the GATS, have been  fully liberalized for modes 1-3. Under other 
business services, New Zealand has liberalized a number of subsectors that have not been 
scheduled under the GATS, such as market research and public opinion polling, management consulting and related services, placement and supply services of personnel, investigation and security, photographic services, and printing, publishing and convention services. Certain 
subsectors, such as services incidental to agriculture, firefighting services, technical testing and 
analysis services, fisheries and aquaculture, and nuclear energy are subject to a number of future 
measures, thus limiting potential liberalization. 
4.61.  In communications services, New Zealand has listed no reservations under the Agreement 
for postal and courier services in Annex 4:I, thus liberalizing these subsectors.
30 In 
telecommunications, in both the Agreement and the GATS, New Zealand requires government 
approval for a shareholding exceeding 49.9% in Chorus Limited, New Zealand's largest 
telecommunications infrastructure company. The absence of other reservations in this subsector results in more liberalization under the Agreement compared to New Zealand's GATS commitments. In audiovisual services, New Zealand requires written approval for the acquisition of 
licences or management rights to use the radio frequency spectrum under the Agreement (not 
listed in its GATS Schedule) and has scheduled future measures regarding the right to adopt or maintain preferential co-production arrangements fo r film and television productions as well as any 
measure with respect to the promotion of film and television production and local content. 
                                                                                                                                               
control of certain categories of land is also subject to  prior approval, as is shar eholding in the commercial 
fishing industry. 
29 This Factual Presentation follows the WTO Services Sector Classification list, which is based on the UN 
Central Product Classification (CPC) and consists of 12 subsectors (WTO document MTN.GNS/W/120). 
30 Certain horizontal reservat ions in Annex 4:II apply. WT/REG348/1 
 
- 29 - 
 
  Table 4.4 New Zealand: comparison between  GATS and the Agreement sector-specific 
commitments in trade in services (excluding mode 4)  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to 
the GATS, 
sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) 
are: Sector-specific 
reservations 
(or provisions) 
specified in 
1. Business services  partial improved Annex 4:I and 4:II  
A. Professional Services  partial improved  
B. Computer and Related Se rvices  partial full  
C. Research and Development Services  partial improved  
D. Real Estate Services  full full  
E. Rental/Leasing Servic es without Operators  partial full  
F. Other Business Services   partial improved  
2. Communication services  partial improved Annex 4:I and 4:II  
A. Postal services  -- improved  
B. Courier services  -- improved  
C. Telecommunication services  partial improved  
D. Audiovisual services partial less  
E. Other  -- improved  
3. Construction & related engineering services  partial full -- 
A. General construction work for buildings  partial full  
B. General construction wo rk for civil engineering  partial full  
C. Installation and assembly work  partial full  
D. Building completion and finishing work  partial full  
E. Other  partial full  
4. Distribution services  partial improved Annex 4:II 
A. Commission agen ts' services  partial improved  
B. Wholesale trade services  partial improved  
C. Retailing services  full same  
D. Franchising  -- full  
E. Other -- full  
5. Educational services  partial improved Annex 4:II 
A. Primary education services  full same  
B. Secondary education services  full same  
C. Higher education services  full same  
D. Adult education  -- full  
E. Other education services  -- full  
6. Environmental services  -- -- Annex 4:II 
A. Sewage services  -- --  
B. Refuse dispos al services  -- --  
C. Sanitation and similar services  -- --  
D. Other -- --  
7. Financial services partial same Annex 4:II 
A. All insurance and insu rance-related services  partial same  
B. Banking and other financia l services partial same  
C. Other -- same  
8. Health related and social services -- improved Annex 4:II 
A. Hospital services -- improved  
B. Other Human Health Services  -- improved  
C. Social Services  -- improved  
D. Other -- improved  
9. Tourism and travel related services  partial improved -- 
A. Hotels and restaurants (including catering)  full same  
B. Travel agencies and to ur operators services  full same  
C. Tourist guides services  full same  
D. Other -- improved  
10. Recreational, cultural and sporti ng services -- improved Annex 4:II 
A. Entertainment services  -- improved  
B. News agency services  -- improved  
C. Libraries, archives, museums and other cultural 
services  -- --  
D. Sporting and other recreational services  -- improved  
E. Other  -- improved  WT/REG348/1 
 
- 30 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to 
the GATS, 
sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) 
are: Sector-specific 
reservations 
(or provisions) 
specified in 
11. Transport services  partial improved Annex 4:I and 4:II  
A. Maritime Transport Services  partial improved  
B. Internal Waterways Transport -- full  
C. Air Transport Services  partial improved  
D. Space Transport  -- full  
E. Rail Transport Services  partial full  
F. Road Transport Services partial full  
G. Pipeline Transport  full full  
H. Services auxiliary to all modes of transport  partial improved  
I. Other Transp ort Services  -- full  
12. Other services not included elsewhere  -- --  
 
Note: 'Improved' means commitments that go beyond the GATS as regards market access or national 
treatment, under any of the three modes. 'Similar'  means commitments that do not go beyond the 
GATS. 'Partial' means commitments that, under th e GATS, are subject to some sector-specific 
limitation(s) under market access or national treatment, under any of the three modes. 
 -- No commitments.   Source: Schedule of Specific Commitments under the GATS (S/DSC/W/NZL) and relevant section of 
Annex 4:I and 4:II of the Agreement. 
4.62.  In construction services, New Zealand has fully liberalized modes 1-3, an improvement over 
its GATS Schedule where mode 1 is unbound (due to lack of technical feasibility) and a subsector of other services (CPC 518) is not scheduled. 
4.63.  In distribution services, New Zealand retains the right under the Agreement, as in the 
GATS, to adopt or maintain any measure for public health or social security purposes with respect 
to wholesale and retail trade services in tobacco products and alcoholic beverages. Franchising and 
other services, which are not subject to GATS commitments, have been liberalized. In education 
services, in addition to primary, secondary and tertiary education in private institutions already liberalized in its GATS Schedule, New Zealand liberalizes adult and other education services, while 
reserving the right to adopt or maintain any measure with regard to public education and with 
respect to the use of statutorily protected educational terms and titles. 
4.64.  In environmental services, a sector in which it has no GATS commitments, New Zealand 
reserves the right to adopt or maintain any measure with regard to public utilities and water, 
including the allocation, collection, treatment and distribution of drinking water. In financial 
services, New Zealand reserves the right to adopt or maintain any measure with respect to financial services as defined in the GATS Annex on Financial Services  that is not inconsistent with 
its obligations under Articles XVI, XVII and XVIII of  the GATS, thus maintaining a GATS floor on its 
commitments under the Agreement. 
4.65.  In health and related social services, a sector in which it has no GATS commitments, 
New Zealand has taken three future measures with  respect to the following: adoption services; 
hospital services, and maternity deliveries and related services, including services provided by midwives to the extent that they are provided by  the private sector; and social services to the 
extent that they are established for a public purpose.  
4.66.  In recreational, cultural and sporting services, a sector in which it has no GATS 
commitments, New Zealand has liberalized the subsectors of entertainment services and new agency services. A future measure reserving the right to adopt or maintain any measure in respect 
of libraries, archives, museums and other cultural services restricts liberalization in this subsector. 
Additionally, New Zealand reserves the right to adopt or maintain any measure with respect to gambling, betting and prostitution services. WT/REG348/1 
 
- 31 - 
 
  4.67.  In transport services, for maritime transport, New Zealand maintains a future measure 
limiting cabotage (passengers and cargo); the prov ision of certain port services; operating a fleet 
under the New Zealand flag and; the registration of  vessels in New Zealand. Rental of vessels with 
crew and maintenance and repair of vessels are not subject to restriction under the Agreement. 
Internal waterways transport and space tran sport, for which New Zealand has no GATS 
commitments, are liberalized under the Agreement. For air transport, in addition to the subsectors liberalized in its GATS Schedule, New Zealand has liberalized aircraft repair and maintenance, 
specialty air services and ground handling. Under the Agreement, investment in international 
scheduled air services and in Air New Zealand is restricted. In rail transport, New Zealand has liberalized maintenance and repair of rail transport equipment and supporting services for rail transport services in addition to its GATS commi tments. Road transport services have been fully 
liberalized under the Agreement. 
4.9  Regulatory provisions  4.9.1  Domestic regulation 
4.68.  Article 12 of Chapter 13 of the Agreement, applicable to modes 1, 2 and 4, mirrors 
GATS Article VI. Where authorization is required for the supply of a service, in addition to provisions that mirror GATS Article VI.3, the Agreement provides the following: in the case of an 
incomplete application, at the request of the appl icant, the Party will identify all the additional 
information required to complete the application and provide the opportunity to remedy deficiencies within a reasonable time-frame; to the extent practicable, establish an indicative time-frame for the processing of an application; and if an application is rejected or denied, to the 
maximum extent possible, inform the applicant in writing and without undue delay the reasons for 
such action. In addition, each Party shall ensure  its competent authorities, where appropriate, 
accept copies of documents authenticated in accordance with domestic law, in place of original 
documents.  
4.69.  If licensing or qualification requirements include the completion of any examination, each 
Party shall ensure that the examination is scheduled at reasonably frequent intervals; and a 
reasonable period of time is provided to enable interested persons to submit an application. The 
Parties shall ensure that any licensing and qualification fees charged by the competent authority for the completion of relevant application procedures are reasonable, transparent and 
commensurate with the administrative costs incurred by the authority, including those for activities 
related to regulation and supervision of the relevant service. 
4.70.  If the results of negotiations related to Ar ticle VI(4) of GATS enter into effect, the Parties 
agree to review the results of such (or similar) negotiations and may incorporate such results into 
the Agreement. 
4.9.2  Recognition 4.71.  Article 13 of Chapter 13 mirrors GATS Article VII. Where a Party recognizes, autonomously 
or by agreement or arrangement, the education or experience obtained, requirements met or 
licences or certification granted in a non-Party, nothing in Article 6 (MFN treatment) shall be construed to require the Party to accord such recognition to the education or experience obtained, requirements met, or licences or certifications granted in the other Party. A Party that is a party to 
such an agreement or arrangement, whether existi ng or future, shall afford adequate opportunity 
for the other Party, upon request, to negotiate it s accession to such an agreement or arrangement 
or to negotiate a comparable one. Where a Party accords recognition autonomously, it shall afford 
adequate opportunity for the other Party to demonstrate that education or experience obtained, 
requirements met, or licences or certifications granted in that other Party should be recognized. 
4.72.  Where appropriate, the Parties agree to fac ilitate the establishment of dialogue between the 
relevant experts, regulators and/or industry bodies to share and maintain qualifications recognition 
processes with a view to encourage the achievement of recognition of qualifications and/or professional registration. Such recognition may be achieved through harmonization, recognition of regulatory outcomes, recognition of qualifications  and professional registration awarded by one 
Party as a means of complying with the regulatory requirements of the other Party (whether WT/REG348/1 
 
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  accorded autonomously or by mutual arrangement) or recognition arrangements concluded 
between the Parties and between industry bodies. 
4.9.3  Subsidies 4.73.  Notwithstanding the fact that Chapter 13 do es not apply to subsidies provided by a Party, 
the Parties agree to review the issue of disciplines on subsidies related to CBTS in the light of any 
disciplines agreed under Article XV of GATS with a view to the incorporation of such disciplines into the Agreement. A Party which considers that it is adversely affected by a subsidy of the other 
Party related to CBTS may request consultations on such matters (Article 14, Chapter 13). 
4.9.4  Monopolies and Exclusive Service Suppliers 4.74.  Provisions on monopolies and exclusive service suppliers are based on the provisions of 
Article VIII of the GATS (Article 15, Chapter 13). 
4.10  Sector specific provisions on trade in services 
4.10.1  Electronic Commerce 4.75.  Chapter 9 deals with Electronic Commerce. The objectives of the Chapter are set out in 
Article 1. The Parties agree inter alia  to promote the efficient functioning of e-commerce 
domestically and internationally, ensure that regulations and the development of regulations affecting e-commerce are transparent, and work to build consumer and business confidence in 
support of the wider utilization of e-commerce be tween the Parties and globally. The Parties agree 
to work towards the implementation of initiatives which provide for the use of paperless trading (Article 3). The Parties agree to maintain their cu rrent practice of not imposing customs duties on 
electronic transmissions between them. The Parties agree to consult each other upon request 
concerning any policies or decisions which may impact adversely on e-commerce aspects of trade 
between them. The Parties do not have recourse to the Agreement's dispute settlement mechanism in respect of any issue arising fr om or relating to the e-commerce Chapter. 
4.10.2  Air Transport Services 
4.76.  Chapter 15 governs Air Transport Services. The objectives of the Chapter are to create 
opportunities for air transport services between and beyond the Parties' respective flight 
information regions, and ensure the highest degree of  safety and security in air transport services. 
4.77.  The Chapter is applied to the measures that a Party adopts or maintains in the matter of air 
transport services. The Air Transport Agreement between New Zealand and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu  (Air Transport Agreement) is incorporated into the 
Agreement; in case of incompatibility, the Air Tr ansport Agreement prevails to the extent of the 
incompatibility. 
4.78.  The Parties shall promote cooperation between their competent authorities for the purpose 
of establishing technical or operational arrangements that facilitate the exchange of information on 
civil aviation safety and environment matters, mutual recognition of safety regulatory certification and/or processes, and trade in civil aviation-related goods and services. 
4.79.  Any dispute that arises with respect to the application or interpretation of Chapter 15 or the 
Air Transport Agreement shall be governed by the Agreement's dispute settlement mechanism, 
except as provided in Article 4. The Parties shall in the first place attempt to settle it by consultations. Failing that, the complaining Party may request the establishment of an arbitral 
tribunal. The arbitrators shall have specialized knowledge of, or experience in, air transport 
services. 
4.10.3  Film and Television Co-Production 
4.80.  Chapter 18 governs film and television co-production. The Parties agree that a 
co-production film shall be entitled to all the benefits which are or may be accorded to domestic films by each of the Parties under their respective laws. Any benefits which may be granted within WT/REG348/1 
 
- 33 - 
 
  either Party in relation to a co-production film shall accrue to the co-producer who is permitted to 
claim those benefits in accordance with the law of that Party, subject to any other relevant international obligations. Co-production films shall require, prior to the commencement of shooting, joint approval of the competent authoritie s. In considering proposals for the making of a 
co-production film, the competent authorities shal l apply the rules set out in the Implementing 
Arrangement on Film and Television Co-Production.
31 Further articles of the Chapter deal inter alia  
with financial contributions, co-productions involving non-Parties, conditions for participation, and 
filming.  
4.81.  The Parties agree to establish a Film and Television Mixed Commission to supervise and 
review the operation of Chapter 18 and make any proposals considered necessary to improve its effectiveness. It shall be convened at the requ est of either Party within six months of such 
request.
32 Neither Party shall have recourse to the Agreement's dispute settlement mechanism in 
respect of any issue arising from  or relating to Chapter 18. 
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 
5.1.  The Parties agree to designate one or more contact points to facilitate communication 
between them on any matter relating to Chapter 2 (Trade in Goods).33 Where either Party 
considers that any actual or proposed measure of the other Party may materially affect trade in 
goods between the Parties, that Party may request detailed information relating to that measure and, if necessary, request consultations with a view to resolving any concerns about the measure (Article 7, Chapter 2). 
5.2.  Each Party shall publish promptly or otherwise make publicly available international 
agreements pertaining to or affecting trade in cross-border services to which it is a signatory. Each Party shall respond promptly to all requests by the other Party for specific information on any of its 
measures of general application which pertain to or affect the operation of Chapter 13 or 
international agreements concerning CBTS to which it is a signatory (Article 10, Chapter 13). 
5.3.  Each Party shall designate a contact point for trade in services to facilitate communication 
between the parties, and shall provide details of such contact point to the other Party.
34 Any 
amendments to the details of their contact points shall be notified (Article 11, Chapter 13). 
5.4.  Chapter 20 sets out a number of provisions governing transparency. The Parties shall ensure 
that their laws, regulations, administrative guid ance, procedures, and administrative rulings of 
general application35 with respect to any matter covered by the Agreement are promptly, no later 
than 90 days after implementation or enforcem ent, published or otherwise made available 
(including through the internet or in print form) to enable interested persons and the other Party 
to become acquainted with them. The Parties shall establish or maintain judicial, quasi-judicial or 
administrative tribunals, or procedures, for the purpose of the prompt review and correction of final administrative actions regarding matters covered by the Agreement, other than those taken 
for prudential reasons.  
5.5.  The Parties agree to designate contact points to facilitate communications on any matter 
covered by the Agreement. They agree to noti fy actual or proposed measures that might 
materially affect the operation of the Agreement or substantially affect the other Party's interest. 
They also agree to provide reasonable notice in the event of administrative proceedings. 
                                               
31 The Implementing Arrangement sets out the Parties' competent authorities for Chapter 18, outlines 
the approval process, and provides details of the contra ct between the co-producers governing the making of a 
co-production film. 
32 The Parties have indicated that they are discussing  arrangements to meet informally in the coming 
months. 
33 The Parties have indicated that such contact points have been set up. 
34 The Parties have indicated that such contact points have been set up. 
35 Defined in Article 1 of Chapter 20. WT/REG348/1 
 
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  5.2  Current payments and capital movements 
5.6.  The Parties permit all transfers and payments  relating to CBTS to be made freely, without 
delay and in a freely usable currency at the market rate of exchange, into and out of their "jurisdictions".
36 A Party may, however, prevent or delay a transfer or payment through the 
equitable, non-discriminatory and good faith application of its laws relating to: bankruptcy, 
insolvency or the protection of the rights of creditors; issuing, trading or dealing in securities, futures, options, or derivatives; financial report ing or record keeping of transfers when necessary 
to assist law enforcement or financial regulatory authorities; criminal or penal offences; ensuring 
compliance with orders or judgments in judicial or administrative proceedings; or social security, public retirement or compulsory savings schemes (Article 16, Chapter 13).  
5.3  Balance of payments safeguards 
5.7.  Article 3 of Chapter 24 provides for the use of certain measures in the case of serious balance 
of payments and external financial difficulties or  under threat thereof affecting trade in goods, 
services or investment. Specifically this would permit, for goods and services, the use of restrictive 
measures in accordance with GATT 1994 and the Understanding on the Balance of Payments 
Provision of GATT 1994, and GATS respectively. For investment, this would permit restrictions with regard to the transfer of funds related to inve stment, including those on capital account and the 
financial account.  
5.4  Exceptions 5.8.  Chapter 24 sets out general exceptions. For the purposes of the Agreement, Article XX of the 
GATT 1994 and GATS Article XIV are incorporated in to the Agreement. The Parties understand that 
the measures referred to in GATT Article XX(b) and GATS Article XIV(b) include environmental 
measures necessary to protect human, animal or plant life or health and that GATT Article XX(g) applies to measures relating to the conservation of living and non-living exhaustible natural 
resources. They further agree that nothing in the Agreement shall be construed to prevent the 
adoption or enforcement by a Party of measures ne cessary to protect that Party's works or specific 
sites of historical or archaeological value, or to support creative arts
37 of significant value to that 
Party as a whole. 
5.9.  In the case of security exceptions, for th e purposes of the Agreement, GATT Article XXI and 
GATS Article XIV bis are incorporated into the Agreement, mutatis mutandis. 
5.10.  Article 4 of Chapter 24 provides that a Party shall not be prevented from taking measures 
for prudential reasons, including for the protection of investors, depositors, policy holders or 
persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Article 5 provides that nothing in the Agreement applies to 
taxation measures. The Agreement only grants rights or imposes obligations with respect to 
taxation measures where corresponding rights or obligations are also granted or imposed under the WTO Agreement, or under Article 13 (Expropria tion) of Chapter 12 (Investment). Nothing in 
the Agreement shall affect the rights and obligations of the Parties under any tax agreement 
relating to the avoidance of double taxation in force between the Parties. Article 6 of Chapter 24 concerns the Treaty of Waitangi. 
5.5  Accession and Withdrawal 
5.11.  There are no provisions on accession to the Agreement. 
5.12.  Article 3 of Chapter 25 provides that eith er Party may withdraw from the Agreement upon 
180 days advance written notice to the other Party. 
                                               
36 Subject to measures to safeguard the balance of payments as outlined in Article 3 of Chapter 24 (see 
Section 5.3).  
37 Defined in a footnote to Article 3.3 of Chapter 24. WT/REG348/1 
 
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  5.6  Institutional framework 
5.13.  Chapter 22 of the Agreement addresses institutional provisions. The Parties establish a Joint 
Commission whose functions are to consider any matter relating to the Agreement's implementation, review its general functioning, co nsider any proposal to amend it, supervise the 
work of all committees and working groups, and consider any other matter that may affect its 
operation. The Joint Commission may inter alia , establish additional committees and working 
groups, further the implementation of the Ag reement through implementing arrangements, 
approve any modifications of the lists of entiti es and thresholds in Annex 3 to Chapter 11 
(Government Procurement), explore measures for the further expansion of trade and investment 
between the Parties, facilitate dialogue on Good Re gulatory Practices, seek to resolve differences 
or disputes, seek expert advice where this would he lp it make an informed decision, and take such 
other action in the exercise of its functions as the Parties may agree. 
5.14.  The Joint Commission shall meet within on e year of the Agreement's entry into force and 
annually thereafter, or as otherwise mutually determined.
38 The Parties shall undertake a general 
review of the Agreement, with a view to furthering  its objectives, within two years of its entry into 
force and at least every three years thereafter, unless agreed otherwise. 
5.15.  Article 3 of Chapter 22 deals with the transposition of tariff schedules and technical 
revisions to the Product Specific Rules Schedule.  
5.7  Dispute settlement 5.16.  Chapter 21 of the Agreement deals with dispute settlement in general, while Section B of 
Chapter 12 (on investment) deals with investor-Party disputes. 
5.17.  Article 3 of Chapter 21 contains the definitions used in the Chapter. Article 2, on scope and 
coverage, provides that the Chapter applies to the avoidance or settlement of disputes between the Parties regarding the interpretation or a pplication of the Agreement; wherever a Party 
considers that an actual or proposed measure of the other Party is not or would not be in 
conformity with the obligations of the Agreement or the other Party has otherwise failed to carry 
out its obligations; or wherever a Party considers that any benefit it could reasonably have 
expected to accrue to it under any provision of the Agreement is being nullified or impaired as a 
result of the application of any actual or proposed measure, whether or not such measure is in conformity with the Agreement. Article 2.2 provides that (subject to the Choice of Forum provision) the Chapter is without prejudice to the rights of the Parties to have recourse to dispute 
settlement under other agreements to which they are party.  
5.18.  Where a dispute arises under the Agreement and another agreement to which both Parties 
are party, the Complaining Party will have the choice of forum. That forum shall then be used to 
the exclusion of other possible fora in respect of that matter.  
5.19.  Article 5 sets out the procedure for consultations with respect to a dispute under the 
Chapter. Article 5.3 provides that upon receipt of a written request for consultations, the 
Responding Party shall reply within seven days and enter into consultations within (a) 15 days in 
the case of urgency or perishable goods, or (b) 30 days. Per Article 5.5, if the Responding Party does not enter into consultations within the time-limit or otherwise agrees, the Complaining Party may proceed directly to the establishment of an arbi tral tribunal pursuant to Article 7. Article 6 of 
Chapter 21 permits the Parties, at any time, to agr ee to good offices, conciliation or mediation.  
5.20.  Articles 7-12 set out the adjudication provisions of Chapter 21. A Party may request the 
establishment of an arbitral tribunal if consultations fail to resolve the dispute within 30 days of 
receipt of the request (urgency/perishable goods) or 60 days regarding all other matters.  
5.21.  Article 8 provides that an arbitral pane l shall consist of three members, appointed and 
nominated in accordance with Articles 8.2-8.5. Th e required expertise of arbitrators is set out in 
Articles 8.6. Once composed, the functions and working method of the arbitral tribunal must 
comply with the requirements of Article 9. Detail s regarding the proceedings of the arbitral tribunal 
                                               
38 According to the Parties, the Joint Commission is scheduled to meet in November 2014. WT/REG348/1 
 
- 36 - 
 
  are set out in Article 10 and Annex 8 on Model Rules of Procedure for Arbitral Tribunals. The 
tribunal may seek information from any individual or body which it deems appropriate. The modalities for issuing the report of the tribunal are set out in Article 12. The Parties may agree to terminate the proceedings of an arbitral tribunal, if a mutually satisfactory solution has been 
found, or to suspend its work for a period not exceeding 12 months. 
5.22.  Articles 13-14 of Chapter 21 concern implementation and compliance within a reasonable 
period of time. The findings and rulings of the arbitral tribunal shall be final and binding on the 
Parties. The Parties shall immediately comply with such findings and rulings; if not practicable to 
comply immediately, then within a reasonable period of time to be mutually determined by the P a r t i e s .  I f  t h e  P a r t i e s  f a i l  t o  a g r e e  o n  t h e  r e a s o n a b l e  p e r i o d  o f  t i m e  w i t h i n  4 5  d a y s  o f  t h e  presentation of the tribunal's final report, either Party may refer the matter to the original tribunal. 
The tribunal will respond within 60 days (or up to a maximum of 90 days).  
5.23.  Article 15 of Chapter 21 deals with Compen sation and Suspension of Benefits. Following a 
failure to comply with the findings and rulings of the tribunal or upon notification that the 
responding Party does not intend to so, the Parties shall enter into negotiations with a view to 
reaching a mutually satisfactory agreement on any necessary compensatory adjustment. If no 
agreement is reached within 20 days, the complaining Party may then suspend benefits of 
equivalent effect. Compensation and suspension of  benefits shall be temporary. The responding 
Party may request the tribunal to decide upon whether the suspension of benefits is of equivalent effect. Article 16 provides for review by the arbi tral tribunal of the level of benefits suspended 
upon written request of the responding Party. 
5.24.  Unless the arbitral tribunal decides otherwise,  each Party shall bear the cost of its appointed 
arbitrator, its own expenses and half the cost of the chair and other expenses (Article 17).  
5.8  Relationship with other agreements concluded by the Parties 
5.25.  Article 3 of Chapter 23 provides that no thing in the Agreement shall derogate from the 
existing rights and obligations of a Party under the WTO Agreement or any other international agreement to which it is party. In the event of any inconsistency, the Parties shall immediately 
consult with each other with a view to finding a mutually satisfactory solution in accordance with 
customary rules of public international law. 
5.26.  Table 5.1 below sets out other regional trade agreements to which the Parties are party.  Table 5.1 New Zealand and Chinese Taipei: Participation in other regional trade 
agreements (notified and non-notified , in force), as of 28 February 2014 
RTA Name Date of 
entry into 
force Coverage Year of 
notification WTO Legal 
Cover 
New Zealand 
Hong Kong, China - New Zealand 01-Jan-11 Goods & 
Services 2011 GATT Art. XXIV & 
GATS Art. V 
New Zealand - Malaysia 01-Aug-10 Goods & 
Services 2012 GATT Art. XXIV & 
GATS Art. V 
ASEAN - Australia - New Zealand 01-Jan-10 Goods & 
Services 2010 GATT Art. XXIV & 
GATS Art. V 
China - New Zealand 01-Oct-08 Goods & 
Services 2009 GATT Art. XXIV & 
GATS Art. V 
Trans-Pacific Strategic Economic 
Partnership 28-May-06 Goods & 
Services 2007 GATT Art. XXIV & 
GATS Art. V 
Thailand - New Zealand 01-Jul-05 Goods & 
Services 2005 GATT Art. XXIV & 
GATS Art. V 
New Zealand - Singapore 01-Jan-01 Goods & 
Services 2001 GATT Art. XXIV & 
GATS Art. V 
Australia - New Zealand (ANZCERTA) 01-Jan-83  
01-Jan-89 Goods 
Services 1983 
1995 GATT Art. XXIV  
GATS Art. V 
South Pacific Regional Trade and Economic 
Cooperation Agreement (SPARTECA) 01-Jan-81 Goods 1981 Enabling Clause WT/REG348/1 
 
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  RTA Name Date of 
entry into 
force Coverage Year of 
notification WTO Legal 
Cover 
Chinese Taipei  
El Salvador- Honduras - Chinese Taipei * Goods & 
Services 2010 GATT Art. XXIV & 
GATS Art. V 
Nicaragua - Chinese Taipei 01-Jan-08 Goods & 
Services 2009 GATT Art. XXIV & 
GATS Art. V 
Guatemala - Chinese Taipei 01-Jul-06 Goods & 
Services 2011 GATT Art. XXIV & 
GATS Art. V 
Panama - Chinese Taipei 01-Jan-04 Goods & 
Services 2009 GATT Art. XXIV & 
GATS Art. V 
Singapore- Chinese Taipei 19-Apr-14 Goods & 
Services 2014 GATT Art. XXIV & 
GATS Art. V 
The Cross-Straits Economic Cooperation Framework Agreement (ECFA) 12-Sep-10 Goods & 
Services Not notified 
 
* Date of entry into force with El Salvador: 1-Mar-08; and with Honduras: 15-Jul-08.  Source: WTO Secretariat. 
5.9  Government procurement 
5.27.  Chapter 11 concerns government procurement.39 The Parties recognize the importance of 
conducting government procurement in accordance with the fundamental principles of the APEC Non-Binding Principles on Government Procurement of transparency, value for money, open and 
effective competition, fair dealing, accountability and due process, and non-discrimination, in order 
to facilitate competitive opportunities for suppliers of the Parties.  
5.28.  The Chapter applies to measures regarding government procurement by any contractual 
means, including purchase, hire purchase, rental or lease, with or without an option to buy, as well 
as build-operate-transfer contracts and public works concessions contracts. Covered entities are 
listed in Annex 3:1. New Zealand has listed 24 entities at central government level. All agencies subordinate to these entities are covered by the Agreement. For New Zealand, Chapter 11 applies 
to all goods and services (including construction) procured by the listed entities unless otherwise 
specified.
40 For Chinese Taipei the list of entities and covered goods and services under Chapter 11 
are those listed in Annexes 1, 4, 5, and 6 including relevant notes in the "Final Appendix I Offer of 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu".41 For Chinese Taipei, 
Chapter 11 does not cover commercial sponsorship arrangements; the acquisition, development, production or co-production of programme materials by broadcasters and procurement for broadcasting time; procurement of agricultural products made in furtherance of agricultural 
support programmes and human feeding programmes; procurement of goods relating to electricity 
projects;
42 and procurement in respect of national security exceptions including procurements 
made in support of safeguarding nuclear materials, radwaste management or technology.  
5.29.  Thresholds for goods, services other than construction services, and construction services 
are listed in Annex 3:II as SDR 130,000, 130,000 and 5,000,000, respectively, for both Parties.43 
5.30.  Article 2.2 of Chapter 11 lists a number of instances to which the Chapter does not apply.44 
Article 4 contains a general exceptions clause. The Parties agree to grant to goods, services and 
                                               
39 Chinese Taipei is a party to the WTO's GPA; New Zealand is an observer, currently negotiating 
accession. 
40 Exceptions are the procurement of  research and development services ; procurement of public health, 
education and welfare services; and procurements relating to commercial sponsorship arrangements. 
41 WTO document GPA/113 dated 2 April 2012. 
42 HS headings 8501 electric motors and generators (except electric motors with capacity of 
22 megawatts or greater, electric generators wi th capacity of 50 megawatts or greater, 850164); 
8504 electrical transformers and converters (except electric al transformers and static converters, with capacity 
of 1 to 600 megawatts); 8532 power capacitors; 8535 electrical switches, breakers, switch-gears (for a voltage exceeding 1,000 volts); 8536 electrical switches, breake rs, switch-gears (for a voltage not exceeding 1,000 
volts); 8537 switch boards, controller panels; power cables including optical fibre cables (except cable related 
to telecommunications applications); 9028 electricity supply meters. 
43 These thresholds are the same as it lists under the GPA. WT/REG348/1 
 
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  suppliers treatment no less favourable than that accorded to their domestic goods, services and 
suppliers. Rules of origin applied to goods or services for procurement covered by the Chapter shall be no different from those app lied in the normal course of trade. 
5.31.  Under Article 5, a Party, including its entities, shall not seek, take account of, impose or 
enforce offsets at any stage of a procurement. 
5.32.  Articles 7-12 deal with non-disclosure of information, publication of information on 
procurement, procurement procedures, notice of intended procurement, conditions for 
participation and lists of registered or qualified suppliers. The Parties agree to ensure that their 
entities do not prepare, adopt or apply any techni cal specification with the purpose or effect of 
creating unnecessary obstacles to trade. Other articles of Chapter 11 deal with tender documentation, exceptions to open or selective tendering, awarding of contracts, post-award 
information, ensuring integrity in procurement practices, domestic review of supplier complaints, 
electronic communications and contact points, and cooperation.  
5.10  Intellectual property rights 
5.33.  Chapter 10 concerns Intellectual Property. The Parties agree on promoting the importance 
of IPR in fostering trade in goods and services, innovation, and economic, social and cultural development; promoting the effective protection, enforcement and maintenance of IPRs; and 
recognize the need to achieve a fair balance betw een the rights of IPR holders, the legitimate 
interests of users and the wider interest of the public with regard to protected subject matter. 
5.34.  The Parties reaffirm their commitment to the TRIPS Agreement (incorporated into the 
Agreement, mutatis mutandis ) and any other multilateral agreement relating to IPR to which they 
are both party. The Parties agree to maintain an effective legal framework to give effect to the 
rights and obligations applicable under the TRIPS Agreement. They agree to maintain transparent 
regulations, efficient and non-discriminatory enforcement mechanisms, access to expeditious 
remedies, and to maintain an effective framework for the enforcement of IPRs.  
5.35.  The Parties agree to designate contact points to facilitate communications and to cooperate 
with a view to eliminating trade in goods infringing IPRs. The Parties may establish appropriate 
measures to protect genetic resources, traditional knowledge and traditional cultural expressions 
or folklore. The Parties agree to protect trademar ks where they predate, in their "jurisdiction", 
geographical indications in accordance with th eir domestic law and the TRIPS Agreement. The 
Parties recognize that geographical indications may be protected through a trademark system. 
Where a Party provides for the protection of a geog raphical indication by means of registration or 
designation, that Party shall provide an opportunity for interested parties to oppose such registration or designation, and seek cancellation of such registration or designation. The grounds 
for opposing or cancelling the registration or designation of a geographical indication are laid out in 
Article 7.  
5.36.  Either Party may request consultations with the other Party in relation to an IPR issue, 
including enforcement. In the event that consultations fail to resolve any such issue, the 
requesting Party may refer the issue to the Joint Commission for consideration. The Parties agree to the termination of two 1998 Intellectual Property Arrangements as laid down in Article 9. 
                                                                                                                                               
44 These include, inter alia , the purchase or acquisition of goods and services by an entity of a Party 
from another entity of that Party, except where tender s are called; procurement of goods and services outside 
the procuring Party for consumption outside the procuring Party; non-contractual agreements or any form of assistance to persons or go vernmental authorities; procurement conduc ted for the specific purpose of providing 
international assistance, including development aid; the procurement or acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions, or services related to the sale, redemption and distribution of pu blic debt, including loans and government bonds, notes 
and other securities; hiring of government employees and related employment measures; any procurement by 
an entity on behalf of an organisation that is not an en tity; the acquisition or rental  of land, existing buildings 
or other immovable property or the rights thereon; or  the procurement of goods or services in respect of 
contracts for construction, refurbishment or furnishing of chance ries or government offices abroad. WT/REG348/1 
 
- 39 - 
 
  5.10.1  Competition Policy 
5.37.  Chapter 8 deals with competition. The Parties recognise the strategic importance of 
promoting open and competitive markets through the effective application of competition policies for the purposes of enhancing trade and investment, economic efficiency and consumer welfare. 
They endorse the APEC Principles to Enhance Co mpetition and Regulatory Reform and agree to 
promote competition and ensure that the desi gn of trade and competition policies and the 
implementation of domestic laws give due weight to their effects on competition. Accordingly, the 
Parties will provide for transparency in policies, laws and rules, and their implementation; apply 
competition policies to economic activities in a manner that does not discriminate between or among economic entities in like circumstances; maintain a high-level government commitment to promote competition and enhance economic efficien cy; set out clear responsibilities within their 
respective administrations for promoting and identi fying the competition and efficiency dimensions 
in the development of policies and rules, and their implementation: promote coherent and effective implementation of trade and competition policies within their respective "jurisdictions"; 
and foster appropriate cooperation between trade and competition officials. 
5.38.  The Parties shall adopt or maintain competition laws that proscribe anticompetitive business 
conduct, with the objective of facilitating economic efficiency and consumer welfare, and shall take 
appropriate action with respect to such conduct. At the time of the Agreement's entry into force 
this obligation is fulfilled by the Commerce Act 1986 (for New Zealand) and the Fair Trade Act (for Chinese Taipei). The Parties shall maintain an authority or authorities responsible for the enforcement of their competition laws and shall endeavour to apply such laws to all commercial 
activities in their "jurisdiction" and not discriminate on the basis of nationality when enforcing such 
laws. 
5.39.  Other provisions of Chapter 8 deal with exemptions and exceptions, the adoption or 
maintenance of private rights of action, consumer protection, cooperation and exchange of 
information, and consultations. The Parties do not have recourse to the Agreement's dispute settlement mechanism in respect of any issue arising from or relating to the Competition Chapter. 
5.10.2  Trade and Labour 
5.40.  Chapter 16 governs trade and labour. The objectives of the Chapter as set out in Article 1 
are to: (a) promote the common aspiration that free trade and investment should lead to job creation, decent work and meaningful jobs for wo rkers, with terms and conditions of employment 
that adhere to internationally recognised fundam ental labour principles and rights; (b) promote, 
through cooperation and dialogue, better understanding of each Party's labour systems, sound labour policies and practices, and the improved ca pacity and capability of each Party to address 
labour issues; (c) promote the improvement of work ing conditions and living standards within the 
Parties, and protection and observance of fundamen tal labour principles and rights; and (d) enable 
the discussion and exchange of views on labour issues  of mutual interest or concern with a view to 
reaching consensus on those issues.  
5.41.  The key commitments as laid down in Article 2 include respecting the right of each Party to 
set, administer and enforce its own labour laws, regulations, policies and practices according to its priorities while recognizing the fundamental labour principles and rights of freedom of association 
and the effective recognition of the right to collective bargaining, the elimination of all forms of 
forced or compulsory labour, the effective abolition of child labour, and the elimination of discrimination in respect of employment and occupation. The Parties shall ensure that their labour 
laws are not set or applied for protectionist purp oses. They agree to promote public awareness of 
their labour laws, regulations, policies and practices domestically. 
5.42.  The Parties agree to a number of institutional and cooperative arrangements including 
designating contact points, meetings of the Parties, seeking public participation and cooperating on 
mutually agreed labour issues. The Parties shall attempt to resolve any issue on the Chapter's implementation through consultations which shall not exceed 180 days, unless otherwise mutually agreed. Neither Party may have recourse to the Agreement's dispute settlement mechanism for 
any matter arising under Chapter 16. WT/REG348/1 
 
- 40 - 
 
  5.10.3  Trade and Environment 
5.43.  Chapter 17 governs trade and environment. The objectives of the Chapter as set out in 
Article 1 are to: (a) contribute to the goal of sustainable development by promoting mutually supportive trade and environment policies; and (b) enhance the capacities and capabilities of the 
Parties to address trade-related environmental issues including through cooperation.  
5.44.  The key commitments as laid down in Article 2 include respecting the right of each Party to 
set, administer and enforce its own environmental laws, regulations, policies and practices 
according to its priorities; and fulfilling their international environmental obligations and intentions 
to pursue high levels of environmental protection. They agree not to weaken their environmental laws, regulations and policies in a manner affecting trade or investment between them and to ensure that their environmental laws, regulations and policies and practices are not set or applied 
for trade protectionist purposes. The Parties acknowledge the importance of transparency, 
appropriate communication, and consultation in the development or implementation of measures aimed at protecting the environment. They agree to promote public awareness of their 
environmental laws, regulations, policies and practices domestically and to ensure the processes 
and institutions for the operation and enforcement of their environmental laws and regulations are 
fair, equitable and transparent. 
5.45.  In order to facilitate trade in environmental goods and services, the Parties agree to 
eliminate all tariffs on environmental goods (as contained in Annex 7)
45 upon the Agreement's 
entry into force; to facilitate the movement of business persons involved in the sale, delivery or installation of environmental goods or  the supply of environmental services
46 in accordance with 
Chapter 14 (Temporary Entry of Business Persons); endeavour to address any non-tariff barriers 
that impede trade in environmental goods or se rvices; and encourage the application of good 
regulatory principles to the design of any future standards and regulations relating to 
environmental goods and services, including transp arency, proportionality, a preference for least 
trade-distorting measures, and the use of internationally agreed standards. 
5.46.  The Parties agree to encourage the development and use of flexible and voluntary 
mechanisms to protect natural resources and the environment in their "jurisdictions", and to 
encourage entities applying voluntary environmental goals or standards, to do so in a transparent manner. 
5.47.  The Parties agree to a number of institutional and cooperative arrangements including 
designating contact points, meetings of the Parties, seeking public participation and cooperating on 
mutually agreed environmental issues. The Parties shall attempt to resolve any issue on the Chapter's implementation through consultations which shall not exceed 180 days, unless otherwise 
mutually agreed. Neither Party may have reco urse to the Agreement's dispute settlement 
mechanism for any matter arising under Chapter 17. 
5.10.3.1  Cooperation on Indigenous Issues 
5.48.  Chapter 19 deals with cooperation on indigenous issues. The objectives of the Chapter are 
to: (a) seek to enhance cultural and people-to-people contacts between the indigenous peoples in Chinese Taipei and New Zealand's M āori; and (b) expand and facilitate trade and economic 
relations between the indigenous peoples in Chinese Taipei and New Zealand's M āori. The Parties 
agree to a number of measures to promote and exchange experiences between their indigenous 
peoples as laid out in Article 2. They agree to consult each other concerning any policies or decisions which may adversely impact indigenous peoples' aspects of trade between the Parties. 
Neither Party shall have recourse to the Agreement's dispute settlement mechanism for any 
matter arising under Chapter 19. 
                                               
45 Annex 7 contains a total of 132 products at the HS six digit level in HS Chapters 40, 56, 73, 76, 84, 
85, 87, 90 and 94. 
46 Environmental services refers to  services directly related to the investment, sale, delivery or 
installation of environmental goods (listed in Annex 7), as well as services that fall under the WTO classification MTN.GNS/W/120 or the Provisional Central Product Classification, 1991. WT/REG348/1 
 
- 41 - 
 
  ANNEX 1 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MF N imports is shown in Tables A1.1 and A1.2, by 
agricultural (WTO definition), non-agricultural and total products. Applied MFN duty rates in 2013 
serve as a comparison.  
2. New Zealand's overall average applied MFN ta riff rate in 2013 was 2.3%. The average 
applied tariff on agricultural goods was 1.7%, comp ared to an average applied tariff of 2.4% on 
non-agricultural products. Duty-free tariff lines a ccounted for 58.3% of all tariff lines. Upon entry 
into force of the Agreement, exporters from Chin ese Taipei enjoyed duty-free market access in all 
agricultural goods, while the share of duty-free tariff lines in non-agricultural products rose from 57.3% to 99.5%. By the end of the transition pe riod in 2017, all lines are to be duty-free.  
Table A1.1 New Zealand: Indicators of MFN ta riff rates and preferential rates for imports 
from Chinese Taipei   
Origin of 
goods Year ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2013 2.3 5.7 58.3 1.7 5.0 64.8 2.4 5.8 57.3 
Chinese 2013 0.0 6.6 99.6 0.0 0.0 100.0 0.0 6.6 99.5 
Taipei 2014 0.0 4.9 99.6 0.0 0.0 100.0 0.0 4.9 99.5 
 2015 0.0 3.3 99.6 0.0 0.0 100.0 0.0 3.3 99.5 
 2016 0.0 1.7 99.6 0.0 0.0 100.0 0.0 1.7 99.5 
 2017 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 
a WTO Definition.  Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data prov ided by the New Zealand authorities. 
3. The average applied MFN rate of Chinese Taip ei was 6.4%. The average applied tariff on 
agricultural products was 13.4% compared to an average applied tariff of 5.1% for 
non-agricultural products. Duty-free tariff lines a ccounted for 29.5% of all tariff lines. Upon entry 
into force of the Agreement, New Zealand's export ers enjoyed a relative margin of preference of 
61.9% for agricultural goods vis-à-vis  the prevailing MFN tariff in 2013, and 94.1% for non-
agricultural goods. Overall, New Zealand's expo rters enjoyed a margin of preference of 82.8% vis-
à-vis the prevailing average applied MFN tariff. By the end of the transition period in 2025, the 
share of duty free lines vis-à-vis  New Zealand is scheduled to increase to 99.9% of the total tariff, 
of which 99.3% will be for agricultural lines and 100% for non-agricultural lines.  
Table A1.2 Chinese Taipei: Indicators of MFN tariff rates and preferential rates for 
imports from New Zealand   
Origin of 
goods Year ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2013 6.4 9.1 29.5 13.4 17.8 23.0 5.1 7.3 30.8 
New 2013 1.1 24.5 94.5 5.1 25.6 75.4 0.3 21.9 98.4 
Zealand 2014 0.9 19.4 94.5 4.1 20.3 75.4 0.3 17.2 98.4 
 2015 0.6 14.5 94.8 3.0 15.4 76.9 0.2 12.4 98.4 
 2016 0.4 9.4 94.8 2.0 10.2 77.0 0.1 7.6 98.4 
 2017 0.2 17.4 98.4 0.9 19.6 92.5 0.0 12.0 99.6 
 2018 0.1 14.1 98.4 0.7 16.3 92.5 0.0 9.0 99.6 
 2019 0.1 11.0 98.4 0.6 12.9 92.5 0.0 6.2 99.6 
 2020 0.1 7.7 98.4 0.4 9.5 92.5 0.0 3.1 99.6 WT/REG348/1 
 
- 42 - 
 
  Origin of 
goods Year ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
 2021 0.0 300.0 99.8 0.2 300.0 98.7 0.0 0.0 100.0 
 2022 0.0 300.0 99.8 0.2 300.0 98.7 0.0 0.0 100.0 
 2023 0.0 300.0 99.8 0.2 300.0 98.7 0.0 0.0 100.0 
 2024 0.0 300.0 99.8 0.2 300.0 98.7 0.0 0.0 100.0 
 2025 0.0 0.0 99.9 0.0 0.0 99.3 0.0 0.0 100.0 
 
a WTO Definition.  Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. Based on the HS 2012 nomenclature.  
 Source: WTO estimates based on data  provided by the authorities. 
4. Table A1.3 shows the market access opportunities in New Zealand for the top 25 exports 
from Chinese Taipei, which in 2010-2012 accounted fo r an average of 49% of its global exports. 
The table shows in which year all HS 8-digit tariff  lines corresponding to the product definition will 
become duty free in New Zealand.  
5. Its top 25 exports cover a total of 116 HS lines of which 86 were already duty-free on an 
MFN basis in 2013. Upon entry into force of the Agreement, the remaining 30 lines became duty-free.  
Table A1.3 New Zealand: Market access opportunities under the agreement for the top 
25 exports from Chinese Taipei to the world   
Chinese Taipei's top  export products in 2010-2012 Access Conditions to New Zealand's 
import markets 
MFN (2013)  Duty-
free in 
2013 HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of lines 
Duty-
free Dutiable 
854239 other 16.0 0.0 1   
271019 other 4.9 0.7 23 4 4 
901380 other devices, appliances and 
instruments 3.3 0.0 1   
851712 telephones for cellular networks or for 
other wireless networks 2.7 0.0 1   
901390 parts and accessories 2.6 0.0 1   
854140 photosensitive semiconductor devices, 
including photovoltaic cells whether or 
not assembled in modules or made up 
into panels; light emitting diodes 2.3 0.0 1   
854232 memories 2.1 0.0 1   
853400 Printed circuits. 2.0 0.0 1   
847330 parts and accessories of the machines 
of heading 84.71 1.9 0.0 1   
852351 solid-state non-volatile storage devices 1.4 0.0 1   
853120 indicator panels incorporating liquid 
crystal devices (lcd) or light emitting diodes (led) 1.2 0.0 1   
291736 terephthalic acid and its salts 0.9 0.0 1   
390330 acrylonitrile-butadiene-styrene (abs) 
copolymers 0.9 0.0 1   
851770 parts 0.7 1.7 4 2 2 
731815 other screws and bolts, whether or not 
with their nuts or washers 0.7 5.0  2 2 
710812 other unwrought forms 0.6 0.0 1   
900120 sheets and plates of polarising material 0.6 0.0 1   
871200 Bicycles and other cycles (including 
delivery tricycles), not motorised. 0.6 2.5 1 1 1 WT/REG348/1 
 
- 43 - 
 
  Chinese Taipei's top  export products in 2010-2012 Access Conditions to New Zealand's 
import markets 
MFN (2013)  Duty-
free in 
2013 HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of lines 
Duty-
free Dutiable 
870899 other 0.6 4.1 3 8 8 
392690 other 0.6 1.9 8 5 5 
847170 storage units 0.5 0.0 1   
271012 light oils and preparations 0.5 1.5 12 5 5 
271020 petroleum oils and oils obtained from 
bituminous minerals (other than crude) and preparations not elsewhere specified or included 0.5 0.7 18 3 3 
710692 semi-manufactured 0.5 0.0 1   
852580 television cameras, digital cameras 
and video camera recorders 0.4 0.0 1   
Total of above 49.0  86 30 30 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on da ta provided by the New Zealand authorities and UNSD, Comtrade 
database.  
6. Table A1.4 shows the market access opportunities in Chinese Taipei for New Zealand's top 
25 exports, which in 2010-2012 accounted for an average of 54.6% of New Zealand's global 
exports. The table shows in which year all HS 8- digit tariff lines corresponding to the product 
definition will become duty free under the Agreement.  
7. New Zealand's top 25 exports cover a total of 66 HS lines of which 17 were already 
duty-free on an MFN basis in 2013. The remaining lines are progressively liberalized from 2015 to 
2021. 
Table A1.4 Chinese Taipei: Market acce ss opportunities under the agreement for 
New Zealand's top 25 exports to the world   
New Zealand's top export products in 2010-2012 Access Conditions to Chinese Taipei's 
import markets 
MFN (2013) Duty-free in  
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
lines Duty-free 
Dutiable 
2013 
2015 
2016 
2017 
2021 
040221 not containing added sugar or other 
sweetening matter 10.9 10.0  1 1     
270900 Petroleum oils and oils obtained 
from bituminous minerals, crude. 4.3 0.0 2       
020230 boneless 3.6 0.0  3  3    
040210 in powder, granules or other solid 
forms, of a fat co ntent, by weight, 
not exceeding 1.5 % 3.4 10.0  1 1     
440320 other, coniferous 3.3 0.0 2       
020442 other cuts with bone in 3.1 15.0  1    1  
040510 butter 2.8 5.0  1 1     
081050 kiwifruit 2.2 20.0  1   1   
220421 in containers holding 2 l or less 2.1 10.0  1 1     
040690 other cheese 2.1 5.0  1 1     
040590 Fats and oils derived from milk, 
other than butter and dairy spreads 2.0 11.5  2 2     
760110 aluminium, not alloyed 2.0 0.0 1       
440710 coniferous 1.7 0.0 2       
040490 Milk products of natural milk 
constituents, whether or not 1.3 27.5  1    1  WT/REG348/1 
 
- 44 - 
 
  New Zealand's top export products in 2010-2012 Access Conditions to Chinese Taipei's 
import markets 
MFN (2013) Duty-free in  
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
lines Duty-free 
Dutiable 
2013 
2015 
2016 
2017 
2021 
sweetened, n.e.s. 
020422 other cuts with bone in 1.3 15.0  1    1  
710812 other unwrought forms 1.2 0.0 2       
020443 boneless 1.0 15.0  1    1  
210690 Food preparations, n.e.s. 1.0 16.6  18 9   3 6 
510121 shorn wool 0.9 0.0 1       
350110 casein 0.9 4.0  1 1     
190190 Malt extract; food preparations of 
flour/groats/meal/starch/malt extract 0.8 16.0  13 5   1 7 
080810 apples 0.8 20.0  1 1     
901920 ozone therapy, oxygen therapy, 
aerosol therapy, artificial respiration or other therapeutic respiration apparatus 0.7 0.0 6       
470321 coniferous 0.6 0.0 1       
190110 preparations for infant use, put up 
for retail sale 0.6 5.0  1 1     
Total of above 54.6  17 49 24 3 1 8 13 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided by  the authorities and UNSD, Comtrade database.  WT/REG348/1 
 
- 45 - 
 
  ANNEX 2 
Table A2.1 Summary of TRQ commitments by Chinese Taipei for certain imports from 
New Zealand  
Description of 
products (HS) 
Tariff 
Code 
 In-quota Tariff 
Quantity  
 In-quota 
Tariff rate Out-of-quota 
tariff rate MFN (2013) rate 
Liquid Milk 
 04011010 
04011020 04012010 04012020 04014010 04014020 04015010 04015020 On EIF, 5,500 
tonnes rising 
progressively to 
10,000 tonnes 
(2022-2024). 
Duty-free as of 
2025. Duty-free 
 NT$14/KGM NT$15.6/KGM  
Deer Velvet 05079020 On EIF, 1,000 
KGM rising 
progressively to 
3,750 KGM by 
2024. Duty-free as 
of 2025. Duty-free On EIF, 500% 
decreasing to 
300% by 2024. 
Duty-free as of 
2025. 500% 
 
Source: Prepared by the WTO Secretariat, ba sed on the Agreement and the tariff schedule. 
__________