WORLD TRADE  
ORGANIZATION   
WT/REG291/1  
6 January 2012 
 (12-0017) 
Committee on Regional Trade Agreements  
  
 
   
 
 
FACTUAL PRESENTATION 
 
Closer Economic Partnership Agreement  
between  
Hong Kong, China and New Zealand 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considera tion of the Closer Economic Partnership 
Agreement between Hong Kong, China and Ne w Zealand has been drawn up by the 
WTO Secretariat on its own responsibility and in full consultation with the Parties.  
The report has been drawn up in accordance with the rules and procedures contained 
in the Decision for a Transparency M echanism for Regional Trade Agreements 
(WT/L/671).   Any technical questions arising from this report may be addressed to 
Mr. Peter Milthorp (tel: +41 22 739 5016). WT/REG291/1 
Page iii  
 
 
TABLE OF CONTENTS 
 
  Page 
I. TRADE ENVIRONMENT 1 
A. M ERCHANDISE TRADE  1 
B. T RADE IN SERVICES AND INVESTMENT  5 
II. CHARACTERISTIC ELEMENT S OF THE AGREEMENT 10 
A. B ACKGROUND INFORMATION  10 
III. PROVISIONS ON TRADE IN GOODS 12 
A. I MPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  12 
1. General provisions 12 
2. Liberalization of trade and tariff lines 12 
3. Liberalization schedule 13 4. Tariff rate quotas 15 
B. R
ULES OF ORIGIN  15 
C. E XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  16 
D. R EGULATORY PROVISIONS ON TRADE IN GOODS  17 
1. Standards 17 
(a) Technical barriers to trade 17 
2. Safeguard mechanisms 18 
(a) Global safeguards 18 
(b) Bilateral safeguards 18 (c) Special safeguards 19 
3. Anti-dumping and countervailing measures 19 
4. Subsidies and State-aid 19 5. Customs-related procedures 19 
6. Other regulations 20 
(a) Competition 20 
(b) Electronic commerce 20 
E. S
ECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  20 
IV. PROVISIONS ON TRADE IN SERVICES 20 
A. S COPE AND DEFINITIONS  20 
B. D ENIAL OF BENEFITS  21 
C. G ENERAL PROVISIONS ON TRADE IN SERVICES  22 
1. Market access 22 
2. National and MFN treatment 22 3. Local presence 22 
4. Movement of natural persons 22 
D. L
IBERALIZATION COMMITMENTS  24 
(a) Horizontal Commitments 25 
(b) Sector-specific commitments 25 
E. R EGULATORY PROVISIONS  28 
1. Domestic regulation 28 
2. Recognition 28 
3. Subsidies 29 4. Safeguards 29 
5. Other 29 
F. S
ECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  29 
 WT/REG291/1 
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V. GENERAL PROVISIONS OF THE AGREEMENT 29 
A. T RANSPARENCY  29 
B. C URRENT PAYMENTS AND CAPITAL MOVEMENTS  30 
C. E XCEPTIONS  30 
D. A CCESSION AND TERMINATION  30 
E. I NSTITUTIONAL FRAMEWORK  30 
F. D ISPUTE SETTLEMENT  31 
G. R ELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  33 
H. G OVERNMENT PROCUREMENT  34 
I. I NTELLECTUAL PROPERTY RIGHTS  36 
ANNEX  37 WT/REG291/1 
Page 1  
 
 
 
 
 
Key Facts 
 
Parties to the Agreement: 
 
Hong Kong, China and New Zealand 
 
Date of Signature:  29 March 2010 
 
Date of Entry into Force: 1 January 2011 
 
Date of Notification:  3 January 2011 
 
  I. TRADE ENVIRONMENT 
1. The Agreement between Hong Kong, China and New Zealand for a Closer Economic 
Partnership Agreement (the Agreement) was notifie d to the WTO pursuant to Article XXIV:7(a) of 
the GATT 1994 and Article V:7(a) of the GATS.
1   
2. The parties to the Agreement have very differe nt economies, in terms of size, profile and 
structure.  In 2010 Hong Kong, China's GDP was estimated at US$224 billion and New Zealand's at 
US$127 billion (in 2009).   
3. Hong Kong, China's total merchandise expor ts and imports tota lled US$401 billion and 
US$442 billion respectively (excluding intra-EU trade), making it the world's 6th largest exporter and 
5th largest importer in 2010.  New Zealand's to tal merchandise exports  and imports totalled 
US$31.4 billion and US$30.6 billion respectively, making it the world's 43rd largest exporter and 
40th largest importer (excluding intra-EU trade).2 
4. In commercial services, in 2010 Hong Kong, China was ranked 7th in exports 
(US$106 billion) and 12th in imports (US$51 billion), excluding intra-EU trade.  New Zealand's 
exports of commercial services in 2010 totalled US$8.6 billion, ranking 35th, with imports totalling 
US$9 billion, ranking New Zealand 39th globally.  Hong Kong, China's trade to GDP ratio over 
2008-2010 was 413.  New Zealand's trade to GDP ratio over 2007-2009 was 58. 
A. MERCHANDISE TRADE  
5. In 2010, Hong Kong China's exports to New Zealand were US$493 million, ranking it its 
28th largest export market.  During 2010, Hong Kong,  China's imports from New Zealand were 
US$459 million, ranking it 26th in New Zealand's sources of imports.   
6. In 2010, New Zealand's exports to Hong Kong, China were US$615 million, ranking it 
New Zealand's 9th largest export market.  In the same year New Zealand's imports from 
Hong Kong, China were US$104 million, ranking 24th amongst New Zealand's import sources.3  
                                                      
1 WT/REG291/N/1 and S/C/N/578 of 7 January 2011. 
2 Source UN, Comtrade database. 
3 Source: UN, Comtrade database. WT/REG291/1 
Page 2  
 
7. Recent developments in intra-party trade are presen ted in Charts I.1 and I.2.  Over the period 
2000-2010, Hong Kong, China initially ran a small deficit but since 2005 especially, it has been 
widening (Chart I.1).  New Zealand's overall trade deficit has fallen and in 2009 and 2010 it registered 
a balance in its trade account.  In its bilatera l trade with Hong Kong, China New Zealand's trade 
surplus increased over the period 2000-2010 (Chart I.2).
4 
 
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0.00.20.40.60.81.01.21.41.61.82.0
050100150200250300350400450
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.1 - Hong Kong, China: Merchandise imports from and exports to world 
and the New Zealand, 2000-2010
US$billion
Imports from New Zealand
Exports to New ZealandTotal imports
Total exportsLeft hand scale: Right hand scale:
Re-exports to New ZealandUS$billion
Source: UNSD, Comtrade database. 
 
    
                                                      
4 There is a discrepancy in the figures reported by the Parties on merchandise trade due to re-exports 
forming a very high share of Hong Kong, China's exports (see Chart I.1 which separates re-exports and exports). WT/REG291/1 
Page 3  
 
 
0246810
0510152025303540
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.2 - New Zealand: Merchandise im ports from and exports to world and 
Hong Kong, China, 2000-2010
Source : UNSD, Comtrade database.Imports from Hong Kong, China
Exports to Hong Kong, ChinaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
8. The commodity structure of trade between the Parties as well as their imports and exports to 
the world in the period 2008-2010 is shown in Ch art I.3 on the basis of broad Harmonised System 
(HS) Sections.  Hong Kong, China's main impor ts from New Zealand, live animals and animal 
products (HS Section I), also account for the largest share of New Zealand's global exports (55.6% of 
Hong Kong China's imports from New Zealand) while Hong Kong, China's main global export 
category, machinery (HS Section XVI) also accounts  for almost half (44.5%) of New Zealand's 
imports from Hong Kong, China. WT/REG291/1 
Page 4  
 
Chart I.3
Hong Kong, China and New Zealand: prod uct composition of merchandise trade, 
annual average (2008-2010)
Hong Kong, China's imports from New Zealand New Zealand's imports from Hong Kong, China
Source:  UNSD, Comtrade database.Per cent
Total:  US$ 439 million Total:  US$ 116 million
Total:  US$ 396 billion Total: US$ 30 billion
Total:  US$ 367 billion Total:  US$ 29 billionHong Kong, China's global exportsNew Zealand's global exportsHong Kong, China's global imports New Zealand's global importsOther
4.6
Live animals
55.6
Machinery 9.3Prepared foods 7.4
Vegetables 8.6Base metals 4.8Raw hides and skins 4.6Chemicals 2.2
Plastics 2.8
Machinery
45.1Other
8.4
Miscellaneous 4.5
Wood pulp 6.0Precious stones 3.5
Chemicals 4.4Base metals 4.0
Textiles 13.1Optical 7.5Plastics 3.5
Machinery
21.4
Plastics 4.9Other 
6.2
Base metals 5.4Textiles 4.5Miscellaneous 2.6
Minerals 
17.0
Vehicles 12.8Chemicals 10.0Prepared foods 6.6Vegetables 2.1
Optical 3.3
Wood pulp 3.3Other 
6.4
Textiles 6.9Optical 4.8Machinery
54.3 Miscellaneous 3.5Base metals 2.8Chemicals 2.5
Precious stones 7.1Plastics 3.7Live animals 2.0
Raw hides and skins 2.4
Minerals 3.5
Other 
10.4
Articles of wood 5.9Wood pulp 3.0
Machinery 6.6Chemicals 4.9Live animals
38.5
Base metals 5.7Vegetables 5.2
Minerals 5.7
Prepared foods 8.9Textiles 2.9Vehicles 2.2
Optical 5.3
Textiles 9.5Precious stones 
7.7Machinery
56.7Miscellaneous 4.2Plastics 3.7Base metals 2.6Raw hides and skins 2.6Other 
7.7
 
 
 WT/REG291/1 
Page 5  
 
 
B. TRADE IN SERVICES AND INVESTMENT  
9. Chart I.4 shows Hong Kong, China's total commercial services trade, with a breakdown by 
sector for the period 2000-2009.  During the period 2000-2009 Hong Kong, China ran a surplus in its 
global services trade.  Its largest exports consist of other business services and transportation services, 
while its largest imports are travel and transportation services. 
020406080100
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: UNCTADStat.Chart I.4
Hong Kong,China, to tal commercial serv ices trade, 2000-2009
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
 
 
 
  
 
     
 
    WT/REG291/1 
Page 6  
 
10. Chart I.5 shows bilateral commercial services trade between the Parties for the period 
2000-2009.  During the period Hong Kong, China ran a surplus with New Zealand.  Imports by 
Hong Kong, China from New Zealand are dominated by travel services, while it exports mainly transportation services. 
050100150200250
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: WTO estimates based on national data.Chart I.5
Hong Kong, China,  bilateral commercial  services trade with  New Zealand, 2000-2008
US$ million
Transportation services Travel Other commercial services
 
 
 
 
    
 
    
 
   WT/REG291/1 
Page 7  
 
 
11. New Zealand's global trade in services (Chart I.6) are dominated by travel services for 
exports, while imports are mainly travel and transportation services. 
0246810
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Note: no export data in 2009 for construction and insurance services.
Source: UNCTADStat.Chart I.6
New Zealand, total commercial services trade, 2000-2009
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
 
 
 
 
    
 
     
 
    
 
 WT/REG291/1 
Page 8  
 
12. Charts I.7 and I.8 show respectively Hong Ko ng, China's and New Zealand's total foreign 
direct investment for the period 2000-2010.  Bo th are net inward recipients of FDI.  
Hong Kong, China's inward and outward stock of FDI in particular grew rapidly during this period, 
with the exception of a fall in 2008.  Followin g a steady increase during this period, FDI in 
New Zealand also declined in 2008;  outward FDI has increased gradually although remains far 
smaller than New Zealand's inward FDI stock. 
02004006008001,0001,200
2000
200120022003
2004
20052006200720082009
201002004006008001,0001,200
2000
2001
2002
20032004
2005
20062007
2008
20092010Chart I.7
Hong Kong, China, inward and outward fore ign direct investment stock with world, 
2000-2010
Source: UNCTADStat.Inward OutwardUS$ billion US$ billion
 
 
 
 WT/REG291/1 
Page 9  
 
 
 
 
 
 
    
 
     
 
    
 
   051015202530354045505560657075
2000
20012002
2003
2004
2005
2006
2007
20082009
2010051015202530354045505560657075
2000
2001
2002
20032004
2005
20062007
2008
2009
2010Chart I.8
New Zealand, inward and outward foreign direct investment stock with world, 
2000-2010
Source: UNCTADStat.Inward OutwardUS$ billion US$ billionWT/REG291/1 
Page 10  
 
13. Chart I.9 shows New Zealand's inward and outward investment flows with Hong Kong, 
China, for the period 2000-2010.  While both outw ard and inward FDI flows increased during this 
period, inward flows grew more rapidly and s ubstantially exceed outward investment flows. 
050100150200250300350400450500550600650700750800850
2008 2009 2010050100150200250300350400450500550600650700750800850
2008 2009 2010Chart I.9
New Zealand , inward and outward foreign direct  investment stock and flow with 
Hong Kong, Ch ina, 2008-2010
Inward OutwardUS$ million US$ million
Source: New Zealand authorities. 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
14. The Hong Kong, China-New Zealand Cl oser Economic Part nership Agreement 
(the Agreement) was signed between the Parties on 29 March 2010, and entered into force on 
1 January 2011.   
15. The goods and services aspects of the Agreement were notified to the WTO by the Parties on 
3 January 2011 under Article XXIV:7 of the GATT 1994 and Article V:7(a) of the GATS respectively 
(document WT/REG291/N/1 and S/C/N/578).  The te xt of the Agreement, and its Annexes are 
available from the following websites: 
 
 WT/REG291/1 
Page 11  
 
 
 Hong Kong, China:   
 http://www.tid.gov.hk/englis h/trade_relations/hknzcep  
 New Zealand:  
 " http://www.mfat.govt.nz/Trade-and-Economic -Relations/2-Trade-Relationships-and-
 Agreements/Hong-Kong/index.php#text " 
16. The Agreement is comprised of 20 Chapters and their Annexes.  Chapter 20 Article 1 
provides that Annexes and footnotes to the Ag reement are part of the Agreement.   
Box I.1:  Outlin e of the Agreement  
Chapters, Annexes  Title/description  
Preamble 
Chapter 1   Initial Provisions 
Chapter 2   General Definitions and Interpretations  
Chapter 3   Trade in Goods 
Annex I to Chapter 3 - Tariff Schedules   
Chapter 4   Rules of Origin 
Annex I to Chapter 4 - Product Specific Rules of Origin  
Chapter 5   Customs Procedures and Cooperation 
Chapter 6   Trade Remedies Chapter 7   Sanitary and Phytosanitary Measures 
Chapter 8   Technical Barriers to Trade 
Chapter 9   Competition Chapter 10   Electronic Commerce 
Chapter 11   Intellectual Property 
 
Chapter 12   Government Procurement  
Annex I to Chapter 12 - List of Entities and Covered Goods and Services Annex II to Chapter12 - Thresholds 
Annex III to Chapter 12 - Sing le Electronic Point of Access 
Annex IV to Chapter 12 - Contact Point  
Chapter 13   Tr ade in Services 
Annex I to Chapter 13 - Schedules of Hong Kong, China and New Zealand Schedule of Non Conforming Measures 
Annex II to Chapter 13 - Schedules of Hong Kong, Ch ina and New Zealand - Sectors in respect of which 
Non Conforming measures may be taken.  Annex III to Chapter 13 - Disciplines on Domestic Regulation 
Annex IV to Chapter 13 - Education Co-operation 
 Chapter 14   Movement of Business Persons 
Annex I to Chapter 14 - Movement of Natural Persons 
 Chapter 15   Transparency 
 
Chapter 16   Dispute Settlement 
Annex I to Chapter 16 - Model Rules of Procedure for Arbitral Tribunals 
 Chapter 17   Administrative and Institutional Provisions  
Chapter 18   General Provisions 
Chapter 19   Exceptions Chapter 20   Final provisions 
 
Source: WTO Secretariat, based on the Agreement.  WT/REG291/1 
Page 12  
 
III. PROVISIONS ON TRADE IN GOODS 
A. I
MPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
17. Each Party accords national treatment to the other per Article III of the GATT 1994 
(Chapter 3, Article 2).5  
18. The Agreement provides that from the date of entr y into force of the Agreement, neither Party 
may increase any existing customs duty nor introdu ce any new duty.  Except as specifically reserved 
in both Parties' Tariff Schedules in Annex I to Chap ter 3, each Party must eliminate customs duties on 
imports of goods from the other Party from the entry into force of the Agreement.  Although there is 
no explicit reference to a transition period, tariff liberalization is due to be completed by 2016. 
2. Liberalization of trade and tariff lines 
19. Trade in goods under the Agreement is classifi ed under the Harmonized System (Chapter 2, 
Article 1 (i), and Annex I to Chapter 3 (Tariff Sc hedules of the Parties)).  The tariff elimination 
schedule is described below in Tables III.1 A and B. 
20. Table III.IA sets out customs duty eliminati on (tariff lines and trade) as applied by 
Hong Kong, China.  Hong Kong, China applies zero duty on all imports on an MFN basis.  As a 
result, prior to the entry into force of the Agre ement, 100% of tariff lines corresponding to 100% of 
Hong Kong, China's imports from New Zealand were already duty free.  Thus, upon entry into force of the Agreement, no additional ta riff lines became duty free.   
Table III.1 
A.  Hong Kong, China's 2011 MFN Tariffs and corresponding average trade 
Duty phase-out 
period Number of lines a % of total lines in 
Hong Kong, China's 
tariff schedule Value of Hong Kong, 
China's imports from  
New Zealand (2008-2010)  
in million US$ a % of Hong Kong, 
China's total imports 
from New Zealand 
2008-2010 
MFN duty free 
(2011) 7,078 100.00 416.3 100.0 
 
a excludes products beyond HS chapter 97.  
Note: Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by Hong Kong, China and the WTO-IDB. 
 
21. Table III.IB sets out customs duty elimination (tariff lines and trade) as applied by 
New Zealand.  Prior to the entry into force of th e Agreement, 57.7% of tariff lines on an MFN basis, 
corresponding to 60.1% of New Zealand's imports from Hong Kong, China were already duty free.  
Upon entry into force of the Agreement, 419 additio nal tariff lines became duty free.  New Zealand 
will liberalize the rest of its tariff in stages.  At  the end of the implementation period (2016) 100% of 
imports from Hong Kong, China will be duty free.   
 
 
  
 
  
 
                                                      
5 Chapter 3, Article 2 additionally provides "… Ar ticle III of GATT 1994 is incorporated into and 
made part of this Agreement, mutatis mutandis ." WT/REG291/1 
Page 13  
 
 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. New Zealand 
Duty phase-out 
period Number of lines a % of total lines in New 
Zealand's tariff 
schedule Value of New Zealand's 
imports from Hong Kong, 
China(2008-2010)  
in million US$ a % of New Zealand's 
total imports from 
Hong Kong, China 
2008-2010 
MFN duty free (2011) 4,207 57.7 60.1 52.5 
2011 419 5.7 1.4 1.2 
2012 1,965 27.0 36.9 32.2 
2013 86 1.2 0.1 0.1 
2014 466 6.4 3.3 2.9 
2016 145 2.0 12.6 11.0 
Total 7,288 100.00 114.4  100.0 
 
a excludes products beyond HS Chapter 97. Note: Exchange rates used for converting data from New Zeal and dollars to US dollars were: NZ$1.39938 per US$ (2008), 1.60016 
(2009) and 1.38743 (2010)  
 Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provide d by New Zealand and the WTO-IDB. 
 
3. Liberalization schedule 
22. Before the Agreement's entry into force, 100% of Hong Kong, China's MFN duty rates were 
zero.  Under the Agreement, Hong Kong, China will  continue to retain zero duty rates on all imports 
from New Zealand.   
23. Chart III.1 below shows duty elimination commi tments by New Zealand under the Agreement 
and corresponding MFN duties.  The bulk of New Zealand's tariff liberalization will take place in 
2012 with the majority of tariff lines liberalized bei ng subject to MFN rates of up to 10%.  By the end 
of the implementation period, all imports  from Hong Kong, China will be duty free. WT/REG291/1 
Page 14  
 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,00020112012201320142016Chart III.1
New Zealand's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by New Zealand.Number of duty-free lines (cumulative)
Duty-free ≤10% MFN is: non ad valorem 
 
 
Table III.2 shows New Zealand's tariff elimination vis-a-vis  Hong Kong, China by HS section.  Of the 
416 lines liberalized upon entry into force of th e Agreement, 74 fall under HS section IV, and 
67 under XVI.  Of the 113 lines remaining dutiable at  the end of the implementation period,106 fall 
under HS section XI and XII (textiles and clothing and footwear).  The majority of the tariff is to be 
liberalized in 2012 with 1,965 lines becoming duty free.  Most of these tariff lines are found in HS Sections XVI (machinery), XV (base metals), V II (plastics and rubber) and IV (prepared foods).  
The remaining tariff is to be liberalized completely by 2016.  
 
Table III.2 
New Zealand: Tariff elimination und er the Agreement, by HS section 
HS section and description  MFN 
avg.%  Total No. 
of lines a Number of duty-free lines  
MFN 2011 2011 2012 2013 2014 2016 
I Live animals and animal products 0.8 251 209 23 19    
II Vegetable products 1.2 300 231 43 26    
III Animal or vegetable fats and oils 1.1 58 45 4 9    
IV Prepared food etc. 2.6 482 226 75 181    
V Minerals 0.3 189 178 1 10    
VI Chemicals and chemical 
products 0.7 951 815 41 89  6  
VII Plastics and rubber 3.1 389 153 32 192 2 7 3 
VIII Hides and skins 2.5 102 54 6 29  10 3 
IX Wood and articles 2.5 205 102 42 61    
X Pulp, paper etc. 0.0 228 228      
Table III.2 (Cont'd)WT/REG291/1 
Page 15  
 
 
HS section and description  MFN 
avg.%  Total No. 
of lines a Number of duty-free lines  
MFN 2011 2011 2012 2013 2014 2016 
XI Textiles and textiles articles 4.2 1,059 484 24  9 49 400 93 
XII Footwear, headgear 5.7 106 38 1 9  43 15 
XIII Articles of stone 2.4 226 119 13 91 3   
XIV Precious stones, etc. 1.2 68 52  16    
XV Base metals and base metals 
products 2.5 802 397 27 374 4   
XVI Machinery 2.8 1,178 513 67 579 3  16 
XVII Transport equipment 3.4 233 99 4 105 24  1 
XVIII Precision equipment 0.9 240 188 10 34   8 
XIX Arms and ammunition 1.8 35 21  12   2 
XX Miscellaneous manufactured 
articles 3.7 179 48 6 120 1  4 
XXI Works of art, etc. 0.0 7 7      
Total 2.4 7,288 4,207 419 1,965 86 466 145 
 
a excludes products beyond HS chapter 97. 
Note: products with specific duties are excl uded in the calculation of tariff averages. 
Based on the HS 2007 nomenclature.   
 
Source :   WTO estimates based on da ta provided by New Zealand.  
 
4. Tariff rate quotas 
24. Neither Party maintains tariff rate quotas (TRQs), including under the Agreement. 
B. RULES OF ORIGIN  
25. Provisions concerning rules of origin are described in Chapter 4 of the Agreement 
(Articles 1-24). 
26. Article 1 of Chapter 4 contains definitions of key terms.  Article 3 provides for preferential 
tariff treatment under the Agreement to be applicable  to goods originating in the Area of the other 
Party.  Section A of Chapter 4 describes the rules for determining the origin of a good while Section B 
contains operational provisions concerning th e application of the rules of origin. 
27. Chapter 4, Article 2 describes th e circumstances in which a good can qualify as originating in 
the Area of a Party to the Agreement:  if it is (a) who lly obtained or produced in the Area of a Party;  
(b) is produced entirely in the Area of one or both  Parties from materials originating from one or both 
Parties;  or (c) is produced in the Area of one or  both Parties using non-originating materials that 
conform to a change in tariff classification or "r egional value content" (RVC) requirement or other 
requirement as specified in Annex I to Chapter 4,  and meets the other applicable provisions of 
Chapter 4 (Chapter 4, Article 5).   
28. Chapter 4, Article 4, (a)-(j) defines "wholly obtained or produced goods", such as plant and 
plant goods, live animals born in the Area of a Part y, produce of live animals reared in the Area of a 
Party, and minerals extracted in the Area of a Party.   
29. Chapter 4, Article 5 concerns the determina tion of "regional value content", per (a) a 
"build-up"6 or (b) a "build-down"7 formula.  Chapter 4 Article 6 provides that accumulation of 
originating materials from the Area of a Party incorporated into a good from the Area of the other Party shall be considered to orig inate in the Area of the other Pa rty.  Minimal processes that do not 
confer a change in origin are described in Chapter 4, Article 7.1 (a)-(f).  Chapter 4, Article 8 requires 
that a good that does not undergo a change in tari ff classification is nonetheless an originating good if 
                                                      
6 RVC=[(material cost + labour cost + overhead cost + profit + other costs)/FOB] X 100%. 
7 RVC=[(FOB - value of non-orig inating materials)/FOB] x 100%. WT/REG291/1 
Page 16  
 
the value of all non-originating materials do not ex ceed 10% of the FOB value of the good and if the 
good meets all other applicable requirements of the Chapter.  Conditions concerning direct 
consignment from the Area of one Party to another or transit through one or more non-Parties that 
does not change origin are described in Chapter 4,  Article 9.  It requires either that the good be 
transported directly from one Party to the other or that it has transited through one or more non-parties 
with or without trans-shipment or temporary stor age for up to six months in the non-parties but has 
not entered trade or commerce there and not underg one any operation other than unloading/reloading, 
repackaging and any other operation to preserve it in good  condition or transport it to the other Party.  
Packing materials and containers will not be ta ken into account in determining origin. Packing 
materials and containers in which a good is packaged  for retail sale are taken into account if the good 
is subject to a RVC requirement (Chapter 4, Article 10).  Accessories, spare parts, tools and 
instructional or other information materials presented with the good are to be considered part of the 
good provided that they are not invoiced separately from the originating good and their quantities and 
values are customary for that good.  Nevertheless, if the good is subject to a RVC requirement, the value of the accessories, spare parts, tools and inst ructional or other information materials shall be 
taken into account in calculating the RVC of the good (C hapter 4, Article 11).  Indirect materials used 
or consumed in the production of a good (such as fuel , tools, solvents etc.) are covered by Article 12.2 
(a)-(h).  Article 13 describes the identification of iden tical and interchangeable materials in relation to 
determination of an originating good.   
30. Compliance with and implementation of the provisi ons of Section A of Chapter 4 is described 
in Section B and Articles 14-24 of the Chapter.  Chapter 4, Article 15 su b-paragraph (a) defines 
"certificate of origin" and (b) "declaration of origin ".  Chapter 4 Article 16.1 permits either Party to 
request from an importer claiming preferential tariff treatment a declaration of origin.  In such a case an importer can only receive preferential treatment pe r the Agreement if it furnishes a declaration of 
origin or other substantiating evidence.  Under Chapter 4 Article 16.2 New Zealand shall require 
certificates of origin for goods falling under HS Chapters 61 and 62 (textiles and clothing) imported 
from Hong Kong, China and claiming preferential tariff treatment.  
31. Chapter 4, Article 17.1-3 describes the form and content of a declaration or certificate of 
origin.  Further operational certification procedures fo r the application for and issuance of a certificate 
of origin are to be mutually determined by th e Parties pursuant to an exchange of letters under 
Article 17.4.  Under Article 18, declarations of origin are not required for shipments under US$1,000, 
or if otherwise waived in respect of specific goods  by the importing Party.  According to the Parties 
no specific goods waivers have been issued to date in respect of this Article. 
32. Article 22 of Chapter 4 sets out the circumstances in which the customs authority of an 
importing Party may conduct a verification of the orig in of a good.  The verification shall take place 
only if there are reasonable grounds to doubt the accuracy or authenticity of the declaration or 
certificate of origin, or the origin  status of the goods concerned;  to facilitate audit checks by the 
importing Party on a risk management basis;  or to ascertain fulfilment of any other requirements of 
the Chapter.  Under Article 23, the customs authorities may deny preferential tariff treatment if information requested in order to conduct a verifi cation is not provided, or if the good does not meet 
the origin rules set out in Chap ter 4 of the Agreement.  Any reasons for denial of preferential 
treatment must be provided in writing by the customs administration of the importing Party to the exporter, importer or producer.  Article 24 permits an application for a refund of excess import 
customs duties or deposit paid in the event of a denial of preferential tariff treatment. up to 12 months 
after import in certain defined circumstances. 
C. E
XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
33. There are no provisions on export duties and charges or quantitative restrictions in the 
Agreement.  Chapter 3, Article 5.1 provides that th e Parties shall not adopt or maintain any non-tariff 
measures on exports except in accordance with th eir rights and obligations under the WTO. WT/REG291/1 
Page 17  
 
 
D. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
34. Sanitary and phytosanitary measures (SPS) are dealt with in Chapter 7 of the Agreement, 
Articles 1-14.  The objectives of the Chapter are stated in Article 1 and focus on enhanced 
implementation of the WTO Agreement on SPS as well as the facilitation of trade and communication 
and collaboration on SPS.   Article 3 expressly incorporates the definitions in Annex A of the 
Agreement on SPS and applies the definitions de veloped by CODEX, OIE and under the IPPC.  
Article 4 notes that the Agreement shall not limit th e rights or obligations of the Parties under the 
Agreement on SPS.   
35. Pursuant to Chapter 7, Article 5, the "Imple menting Arrangement 1" identifies the competent 
authorities and contact points.  For Hong Kong, China these are the Agriculture, Fisheries and 
Conservation Department and the Food and Envi ronmental Hygiene Department;  while in 
New Zealand the authorities are MAF Biosecurity  New Zealand (MAFBNZ) in the Ministry of 
Agriculture and Forestry and the New Zealand Food Safety Authority (NZFSA).8  Article 5.2-5 
defines the responsibilities of the competent author ities and contact points, including establishing 
technical groups to identify and address relevant techni cal and scientific issues at the request of either 
Party.  According to the Parties no technical worki ng group has been established yet.  Article 6 is the 
enabling provision for the adoption of Implementing Arrangements.  Under Article 7.1-3, the Parties 
are permitted to make determinati ons of equivalence, pursuant to Article 4 of the WTO Agreement on 
SPS, which shall be recorded in an "Implementing Arrangement".  The Parties indicate that no 
determination of equivalence has been made.  
36. Chapter 7, Article 8.1-3 permits the Parties to make determinations pursuant to Article 6 of 
the WTO Agreement on SPS.  The Parties may agree the procedures and principles for those determinations, which shall be recorded in an "Imp lementing Arrangement".  Verification and audit of 
the exporting Parties compliance with the Chapter is permitted under Article 9.  
37. Chapter 7, Article 10 permits the application of  "Emergency Measures" for the protection of 
human, animal or plant life or health.  Any such me asures must be notified to the contact point of the 
other Party within 24 hours of application.  Pursuant  to Article 11.1, notification of the other Party is 
required of any significant food safety issue or change in animal or plant health or pest status.  Under 
Article 11.2, when a Party notifies the other Party of non-compliant imports from the second Party, the two Parties shall cooperate on identifying cons ignments and consult on  appropriate remedial 
actions to address non-compliance. 
38. Chapter 7, Article 12.1 permits a Party to requ est a detailed explanation of and justification 
for the measure.  Consultations can be requested  per Article 12.2.  Article 14 provides that any 
consultations held under Articles 10, 11 or 12 of Chapter 7 are without prejudice to the rights and 
obligations of the Parties under Chapter 16 of the Agreement ("Dispute Settlement") or the 
WTO Dispute Settlement Understanding (DSU).   
(a) Technical barriers to trade 
39. Chapter 8, Articles 1-12, are concerned with Technical Barriers to Trade (TBT).  Article 1 
describes the objectives of the Chapter focusing on increasing and facilitating trade, exchange of 
information and co-operation.  Article 2 defines th e scope of application of the Chapter and provides 
that all goods traded between the Pa rties are covered by the Chapter, regardless of the origin of the 
goods, save those covered by Chapter 12 on Govern ment Procurement and Chapter 7 on SPS.   
                                                      
8 The Implementing Arrangement 1 entered into force on  the same date as the Agreement.  Available at 
http://www.tid.gov.hk/english/trade_relatio ns/hknzcep/files/HKNZCEP211_SPSIA1.pdf . WT/REG291/1 
Page 18  
 
40. The rights and obligations of the Parties under the WTO Agreement on TBT are restated in 
Chapter 8 Article 4.  Article 5 requires the Parties to ordinarily use international standards to the 
extent provided by Articles 2 and 5 and Annex 3 of the WTO Agreement on TBT as the basis for their 
technical regulations and conformity assessment pr ocedures.  Under Article  5.2 any determination 
about the existence of such a standard shall be  undertaken in conformity with Decisions and 
Recommendations adopted by the WTO Committee on TBT.   
41. Chapter 8, Article 6.1 exhorts the Parties to consider accepting the equivalence of technical 
regulations of the other Party even where these regul ations differ from their own, provided they are 
satisfied that the regulations adequately fulfil thei r own regulatory objectives.  Article 6.2 requires a 
Party to explain why they do not accept the equivalen ce of a regulation, if so requested.  Article 6.3 
requires the Parties to positively consider any request  by the other Party to negotiate arrangements for 
achieving equivalence of technical regulations.   
42. Chapter 8, Article 7.1(a)-(g) sets out a number of mechanisms to facilitate the acceptance of 
conformity assessment procedures in the other Pa rty.  Conformity assessment procedures applied 
between the Parties should not be more restrictive than necessary to facilitate trade.  The Parties may 
accredit or recognize each other's conformity assessment bodies on terms no less favourable than 
accorded to their own conformity assessment bodies.  Any refusal to accredit or otherwise recognize a 
body of the other Party must, at the request of that  Party, be explained.  Any failure to accept the 
results of any conformity assessment in the other Part y must also be explained at the request of that 
Party.  Article 7.7 requires each Party to give positiv e consideration to a request by the other Party to 
negotiate and conclude arrangements to facilitate recognition of the results of conformity assessment 
procedures conducted by bodies in the other Party.  If such a request is declined, the Party declining 
must at the request of the other Party, explain why.  Article 8 enjoins the Parties to enhance 
co-operation in regulatory effectiveness.  Article 8.2 requires the establishment of work programmes 
on specific subjects under Article 10 of Chapter 8.  The Parties indicate that no such work 
programmes have been established.  
43. Chapter 8, Article 9 contains additional tr ansparency obligations, including for notices 
published under Articles 2(9) and (10) or 5(6) a nd (7) of the WTO Agreement on TBT.  Chapter 8, 
Article 10.1(a)-(f) defines the responsibilities of the contact points of the Parties.  Articles 10.2 and 3 respectively require the communication of the de signated contact point and the updating of any 
changes to the contact point.  Article 10.4 requi res the establishment of a TBT Committee to promote 
and monitor the implementation of Chapter 8.  The functions of the Committee are described in 
Article 10.5(a)-(f).  The Committee is expected to hold its inaugural meeting on 15 March 2012.  
Article 11 requires the Parties to identify any add itional trade facilitating agreements or arrangements 
regarding standards, technical regulations and c onformity assessment, which may be the subject of 
additional Annexes or Implementing Arrangements to  the Chapter.  According to the Parties no 
additional Annexes or Implementi ng Arrangements have been concl uded.  Article 12 regulates the 
holding of technical consultations on any matter under the Chapter. 
2. Safeguard mechanisms 
(a) Global safeguards 
44. Chapter 6, Article 3 concerns Safeguard Measure s.  Article 3.1 restates the Parties rights and 
obligations under Article XIX of the GATT 19 94 and the WTO Agreement on Safeguards.  
Article 3.2 requires that safeguard measures not be applied to imports from the other Party unless the 
imports in and of themselves cause or threaten serious injury.  
(b) Bilateral safeguards 
45. 
The Agreement contains no prov isions on bilateral safeguards. WT/REG291/1 
Page 19  
 
 
(c) Special safeguards 
46. The Agreement contains no provisions on special safeguards.   
3. Anti-dumping and countervailing measures 
47. Trade Remedies are dealt with in Chapter 6 of the Agreement.  Article 1.1 states that the 
Parties will not take any trade remedy action under Article VI of the GATT 1994, the 
WTO  Agreement on Implementation of Article VI , the WTO Agreement on Subsidies and 
Countervailing Measures (SCM), Article XIX of the GATT 1994 and the WTO Agreement on Safeguards in an arbitrary or protectionist manner.   
48. Chapter 6, Article 2 concerns Subsidies and Countervailing Measures, and restates the Parties 
rights and obligations under Article VI of  the GATT 1994 and the Agreement on SCM.   
49. Anti-dumping measures are dealt with in Chapter 6 Article 4.  The Parties restate their rights 
and obligations under Article VI of the GATT 1994 and the WTO Agreement on Implementation of 
Article VI of the GATT 1994 in Article 4.1.  Article  4.2 refers to Article 5(5) of the Agreement on 
Implementation of Article VI of the GATT 1994 a nd the Parties agree to provide notice of an 
application for initiation of an investiga tion within seven days of receipt.   
50. Chapter 6, Article 5 establishes a contact and consultation mechanism to permit the resolution 
of matters arising from Chapter 6.  Article 5.3 restates that any action under the Article shall be 
without prejudice to the Parties rights and obligations under the WTO DSU.   
4. Subsidies and State-aid 
51. Chapter 6, Article 2.1 commits the Parties' to  prohibit export subsidies on all goods including 
agricultural products. 
5. Customs-related procedures 
52. Chapter 5, Articles 1-15 of the Agreement cont ain provisions concerning Customs Procedures 
and Co-operation.  The Chapter's objectives are to simplify and harmonize customs procedures as 
well as streamlining and facilitating trade and co-ope ration between the Parties.  Article 4 requires 
that the Parties determine the customs value of  goods pursuant to Article VII of the Customs 
Valuation Agreement.  Advance determinations of  tariff classification and origin of goods may be 
obtained by exporters, importers or  any persons with justifiable ca use before importing a good.  The 
Parties clarify that in practice there are no specifi c requirements that an applicant have "justifiable 
cause":  as Hong Kong, China does not apply tariffs or require certificates of origin, there is not requirement to obtain advance rulings, while New Z ealand legislation permits any person to apply for 
an advance ruling.  Rulings should be issued to th e applicant expeditiously on receipt of all necessary 
information and in any case within 60 days for tariff classification and 150 days for origin (Article 6).  
Rulings may also be revoked if it is determined that  the ruling was based on an error of fact or law or 
the information provided was false a nd inaccurate, if there is a change in domestic law consistent with 
the agreement or if there is a change in a material  fact or circumstances on which the ruling is based.  
Measures to facilitate the processing of express consi gnments are set out in Article 8.  Article 9 
requires the Parties to ensure that goods are released  or processed within 48 hours of arrival, subject 
to certain conditions.  Article 11 provides for a right  of review and appeal of customs administrative 
rulings by interested parties (importer, exporter or any other person affected by the decision).  
Mechanisms for customs co-operation between the Par ties and consultations are set out in Articles 12 
and 13 respectively.  Consultations may be requested by either customs administration at any time and 
on any matter arising from the operation or implementa tion of the Chapter.  The consultations are to 
be conducted through the contact points and within 30 days of the receipt of the request unless WT/REG291/1 
Page 20  
 
determined otherwise by the Parties.  Failure to resolve the matter may result in the requesting Party 
referring the matter to the Committee on Trade in Goods .  Any action taken under this Article shall be 
without prejudice to the rights and obligations of the Parties under Chapter 16 on Dispute Settlement or under the WTO DSU.  Publication and enquiry points are required pursuant to Article 14. 
6. Other regulations 
(a) Competition 
53. Chapter 9, Articles 1-6 concern Competition.  Article 1 states the objective of promoting open 
and competitive markets.  Article 2 records the Pa rties' agreement to promote policy coherence and 
endorses the Asia-Pacific Ec onomic Co-operation (APEC) Principles to Enhance Competition and 
Regulatory Reform  and specific programs set out in Article 2.1(a)-(f).  Article 3 permits the Parties to 
maintain exceptions to a competition regime in order to achieve other legitimate policy objectives, 
while ensuring they are no broader than necessar y to achieve a legitimate policy objective and 
implemented in a transparent way that minimizes di stortions to free and fair competition.  No such 
exemptions have been identified to date by the Parties.  Article 4 and 5 concern Co-operation and 
Exchange of information and Consultations respectiv ely.  Article 6 provides Chapter 9 is not subject 
to the provisions of the Agreement dealing with dispute settlement.    
(b) Electronic commerce 
54. Chapter 10, Articles 1-5 deal with "E-commer ce".  Article 1 provides that the objectives of 
the Chapter are to minimise the imposition of rest rictions or limitations upon E-commerce, encourage 
the treatment where possible of E-commerce transac tions as equivalent to paper transactions and 
promote its use to assist the timeliness and reduce the cost of commercial transactions.  Article 2 
states the Parties' agreement to promote E-commerce and ensure a predictable and simple legal 
environment for E-commerce taking into account the UNCITRAL Model Law on Economic 
Commerce, 1996 and other model laws on E-commer ce as may be adopted or revised by UNCITRAL 
or other international organizations.  In Artic le 3 objectives are set out for future E-commerce 
initiatives to reduce compliance costs and enhance transparency of government regulations and 
administrative efficiency and reduce TBTs.  Under Artic le 4 at the request of either Party, the Parties 
agree to consult each other on the development of policy for E-commerce and policies or decisions that may impact adversely on E-commerce aspects of bilateral trade.  Article 5 provides that dispute 
settlement procedures under the Agreement are not applicable to Chapter 10.   
E. S
ECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  
55. There are no sector-specific provisions on goods in the Agreement.  
IV. PROVISIONS ON TRADE IN SERVICES 
A. SCOPE AND DEFINITIONS  
56. Chapter 13 of the Agreement, Articles 1-17, co ncerns Trade in Services.  The Agreement's 
treatment of specific commitments in modes 1-3 of services is on a "negative list" basis (Article 7) 
while mode 4 (Article 15.3 and 15.4) is based on a positive GATS type list.   
57. The scope of the Chapter is set out in Article  2;  it applies to all measures adopted or 
maintained by a Party affecting trade in services wh ere trade in services means the supply of a service 
from the Area of one Party into the Area of the other Party (mode 1);  in the Area of one Party to the service consumer of the other Party (mode 2);  by  a service supplier of one Party through commercial 
presence in the Area of the other Party (mode 3);  or by a service supplier of one Party through the presence of natural persons of that Party in the Area of the other Party (mode 4) (Article 3).  WT/REG291/1 
Page 21  
 
 
Per Article 2.2, it does not apply to government pr ocurement, subsidies and grants, natural persons 
seeking employment or citizenship, residence or employment.   Article 2.3 also provides that it does 
not apply to measures affecting air transport or related services in support of air services (except to aircraft repair and maintenance services, selling a nd marketing of air transport services, and computer 
reservation system services).   
58. Under Article 3 of Chapter 18 on General Provisi ons, nothing in the Agreement shall derogate 
from the existing rights and obligations of either Pa rty under the WTO Agreement.  It also provides 
that in the event of any inconsistency between th e Agreement and any other international agreement 
which applies to the Parties, they immediately c onsult with each other, with a view to finding a 
mutually satisfactory solution. 
59. In the context of the Agreement's "negative list" approach, Chapter 13 of the Agreement 
creates obligations covering modes 1-3 on:  market access
9 where the Parties are prohibited from 
limiting access through the use of quantita tive restrictions, national treatment10 where the Parties must 
treat services suppliers from the other Party no less favourably than they treat their own like services 
and like suppliers, local presence11 where the Parties cannot require the service provider of another 
party to have a commercial presence or be a resi dent as a precondition for the supply of cross-border 
trade in services, and most favoured nation12 where the Parties will automatically receive the benefit 
of commitments the other Party makes in future free trade agreements that are more liberal than those 
in the Agreement except those in respect of aviation, fisheries and maritime matters.13  Those 
obligations are subject only to Sc heduled reservations contained in the Annexes to Chapter 13.   
60. Access under mode 4 is the subject of a separate Chapter of the Agreement (Chapter 14).14   
61. Chapter 13 Article 2.1 defines the scope of the Chapter as measures a dopted or maintained by 
a Party affecting trade in services.  Articles 2.2 a nd 2.3 list exclusions.  Article 2.4 refers to the 
multilateral negotiations on the review of the GA TS Annex on Air Transport Services and requires the 
Parties to review any results emerging therefrom with the purpose of making appropriate amendments 
to the Agreement.  Article 3(a)-(r) sets out the defi nitions used in the Chapter, which are broadly 
similar to the GATS.  Unlike the GATS Article 3 also  contains a definition of "state enterprise".  
Article 3 also provides that the definition of "nat ural persons" extends to permanent residents.   
B. DENIAL OF BENEFITS  
62. Chapter 13, Article 14.1 provides conditions under which the Parties may deny the benefits of 
the Chapter to a service supplier of the other Party wh ere the Party determines that the service is being 
supplied by an enterprise that is owned or contro lled by persons of a non-party and has no substantive 
business operations in the Area of the other Party;  or the service is being supplied by an enterprise 
that is owned or controlled by persons of the de nying Party and has no subs tantive business operations 
in the Area of the other Party.  Although substa ntive business operations a nd ownership and control 
are not defined in the Agreement, the Parties not e that similar terms are used in the GATS.  
Article 14.2 requires that upon denial of benefits a Party must enter into consultations (if requested) 
with the other Party within 30 days of receipt of  the request.  Any consultations held under that 
paragraph are without prejudice to the rights and obl igations of the Parties under Chapter 16 of the 
Agreement or the WTO DSU.   
                                                      
9 Chapter 13 Article 4. 
10 Chapter 13 Article 5. 
11 Chapter 13 Article 6. 
12 Chapter 13 Article 12. 
13 Chapter 13 Article 12.1-3. 
14 Note Chapter 14 of the Agreement on "Movement of Natural Persons" applies to persons concerned 
with trade in services as well as trade in goods and investment  between the Parties (Chapter 14 Article 1(c)).   WT/REG291/1 
Page 22  
 
C. G
ENERAL PROVISIONS ON TRADE IN SERVICES  
63. As noted above, the Agreement uses a "nega tive list" approach for scheduling services 
commitments, whereby the services sectors of both Parties across modes 1-3 are opened to each Party, subject to specific reservations inscribed in the Schedules of the Parties, under Chapter 13 of the 
Agreement.  Mode 4 is covered by Chapter 14 on Movement of Business Persons and based on a 
positive list approach.
15 
64. Chapter 13 Article 1 provides that the objectives of  the Chapter are to facilitate the expansion 
of trade in services on mutually advantageous terms, to improve the efficiency and transparency of the Parties services sectors and competitiveness of e xport trade, and to work toward progressive 
liberalization, whilst recognizing the right of th e Parties to regulate and introduce regulations.  
Article 1 also recognises the rights of the Parties to provide and fund public services. 
1. Market access 
65. Chapter 13, Article 4 provides that neither Pa rty shall adopt or maintain limitations upon 
access to the services market in all or part of the Area of a Party, and lists 5 proscribed measures in   
Article 4 (a)-(e).  This include  limitations on the number of servi ce providers, the number of natural 
persons providing services, the value of servi ces provided, the number of service operations, the 
number or type of legal entity or joint ventures pr oviding services.  The proscribed measures reflect 
Article XVI.2 of the GATS. 
2. National and MFN treatment 
66. Chapter 13, Article 5 concerns national treatment .  Article 5.1 provides that each Party must 
accord the other Party treatment no less favourable th an it applies in respect of its own like services 
and suppliers of services.  It may do so by accord ing to services and service suppliers of the other 
Party formally identical or formally different treatment to that accorded to its own services and 
service suppliers.  
67. Chapter 13 Article 12, on Most Favoured Nation Treatment, requires each Party to accord to 
the other Party no less favourable treatment than it affords to non-Parties to the Agreement.  
Article 12.2 permits the Parties to adopt or maintain  any measure that accords differential treatment to 
non-Parties in like circumstances in respect of any free trade or multilateral agreement in force signed 
prior to the Agreement;  this would also include  any measures taken as part of a wider process of 
economic integration or trade liberalisation between the parties to such agre ements (Article 12.3).  
Article 12.4 permits the Parties to retain reservations  in respect of non-Parties in aviation, fisheries 
and maritime matters.   
3. Local presence 
68. Chapter 13 Article 6 provides that a Party may no t require a service supplier of the other Party 
to establish or maintain a representative office or en terprise, or to be resident as a condition to the 
cross border supply of services.  This obligation can be the subject of a reservation by virtue of Article 7. 
4. Movement of natural persons 
69. Chapter 14, Articles 1-8 concern Movement of Natu ral Persons, in relation to trade in services 
as well as persons engaged in trade in goods  or investment between the Parties.   
                                                      
15 See note 13 above. WT/REG291/1 
Page 23  
 
 
70. Chapter 14 Article 1 provides that the objectives  of the Chapter are:  to facilitate the 
movement of natural persons (of e ither Party) engaged in the conduct of trade and investment between 
the Parties;  to establish streamlined immigrati on procedures for business persons;  and to provide 
rights additional to those arising from Chapters 3 (tra de in goods) and 13 (trade in services).  Article 2 
provides that the Chapter applies to the temporary entry of "business persons."  "Business persons" as 
defined in Article 3 include business visitors, in tra-corporate transferees, independent service 
suppliers, and installers or servicers.  Pursuant to Article 2.2, the Chapter does not apply to measures 
affecting persons seeking employment in the ot her Party nor to measures concerning nationality, 
citizenship, residence or employment on a permanent basis.   
71. Chapter 14, Article 4.1 requires the Parties to make commitments (inscribed in a Schedule to 
the Chapter) in respect of the temporary entry of bu siness persons covered by Article 2.  Article 4.2 
provides that when a commitment is inscribed in th e Schedule of a Party, that Party must grant or 
extend a temporary entry for a business person, prov ided that those persons follow any prescribed 
application procedure and meet other eligibility re quirements.  Article 5 requires the Parties to 
expeditiously process a business person's applica tion for immigration (either making a decision or 
providing information to the applicant on when the decision can be taken within 10 working days of 
receipt of the application).  Article 6 provides tran sparency requirements for the administration of the 
obligations contained in the Chapter.  Article 7 on Dispute Settlement restricts the Parties' access to 
Chapter 16 on Dispute Settlement and requires them to  settle any differences or disputes arising out of 
the implementation of the Chapter through consulta tions or negotiations unless the matter involves a 
pattern of practice and the business person has e xhausted all available administrative remedies 
regarding the matter.  Article 8 requires the Parties to designate and notify contact points in relation to 
the Chapter.  Such contact points have been estab lished and notified by the Parties to each other. 
72. Annex I to Chapter 14 contains the Schedules of the Parties, setting out the commitments 
undertaken in respect of Article 4 of Chapter 14.  Paragraph 1 of the Headnotes to the Schedules of 
the Parties notes that the commitments in the Sc hedules concern the temporary entry of business 
persons, including the temporary entrance of natura l persons.  Paragraph 2 of the Headnotes to each 
Schedule notes that the Parties reserve the right to ma intain any measure in response to the supply of a 
service through the presence of natural persons except as set out in the Scheduled commitments.  The 
Parties' respective commitments under Article 4 of Ch apter 14 with reference to  the list of sectors and 
subsectors set out in MTN.GNS/W/120, are listed in the Annex.16   
                                                      
16 Hong Kong, China's co mmitments on Intra-corporate Transfer ees exclude:  1.A.a legal services, 
1.A.h. medical and dental services, 1.A.j. services provided by midwives, nurses, physiotherapists and 
para-medical personnel, 1.A.k other professional serv ices, 1.C research and development services, 1.E.b. 
rental/leasing services without operators relating to airc raft, 1.E.e other rental and leasing services without. 
operators, I.F.h services incidental to mining, I.F.j. services incidental to energy distribution, 2.A postal 
services, (2.B courier services is a special case:  it is incl uded  but  "limited to the provision of services on a fee 
or contract basis for the delivery of documents and par cels but excluding services re served to the Post Office 
under Post Office ordinance";  similarly 5.C higher education services and 5.D adult education services, 10.A 
entertainment services, 11.C air trans port services appear with a limitation of scope), 2.Dc: radio and television 
services, 2.D.d radio and television transmission services, 2.D.f. other audiovisual services, 2.E other 
communication services, part of 7.B.f. trading for own account or for account of customs other negotiable 
instruments and financial assets, 7.B.h money broking, 7.B.j. settlement and clearing services for financial 
assets, 7.C other financial services, 8 health related and social services, 10B news agency services, 10.E other 
recreational cultural and sporting servi ces,11.B inland waterways transport, 11.D space transport, 11.E rail 
transport services, 11.F road transport services, 11.G pipelines transport, 11.I other transport services, 12. Other 
services not included else where.  Hong Kong, China' s commitments on servicers or installers cover four 
subsectors of computer services out of five and all environmental services.   
New Zealand includes all sectors listed in MTN/GN S/W/120 for intra-corporate transferees but limits 
its commitments for installers or servicers to four computer services out of five and to all environmental 
services.  In addition, New Zealand mentions specific restrictions for labour disputes and ship crews and WT/REG291/1 
Page 24  
 
73. Hong Kong, China's Annex I Schedule to Chapter 14 includes an economic needs test for 
servicers and installers.   
Table IV.1 - Duration of temporary stay by a natural person of a Party in other Party 
 Hong Kong, China 
Initial period of  
entry and stay Extension New Zealand Initial period of 
 entry and stay Extension 
Short-term business 
visitors 90 days Not described 3 months in  any calendar year Not described 
Intra Corporate 
Transferees For senior managers and 
specialists one year. (See list of sectors/sub-sectors 
covered in Schedule)  Up to 5 years Senior manage r up to 3 years Not described 
Installers or servicers 3 months in any 12 month 
period (see list of 
sectors/sub-sectors 
covered in Schedule). Not described Business services: CPC 841, 842, 843, 844:  
Environmental Services CPC 9401, 9402, 
9403, 9404, 9405, 9406, 9409 maximum 
stay 3 months in 12 month period. Not described 
 
Source:  Annex I to Chapter 14 of the Agreement. 
D. LIBERALIZATION COMMITMENTS  
74. As noted above, the Parties' liberalizati on commitments for modes 1-3 are based on a 
"negative list".17 
75. Chapter 13, Article 7.1 provides that non-conf orming existing central or local government 
level measures or the continuation or renewal of or  amendment to these measures listed in the Parties' 
Annex I Schedules are exempted from the obligations  contained in Article 4 ("Market Access"), 
Article 5 ("National Treatment"), Article 6 ("Local  Presence") and Article 12 ("Most Favoured Nation 
Treatment").   
76. Annex I to Chapter 13 contains a Headnote.  Paragraph 2 of the Headnote provides that the 
Annex I Schedule of a Party sets out, pursuant to Article 7.1 of Chapter 13 the measures that are not 
subject to Articles 4, 5, 6 and 12 of Chapter 13.   
                                                                                                                                                                     
specific visa procedures for entertaine rs.  It also indicates specifically th at its GATS commitments also apply to 
the services suppliers fr om Hong Kong, China. 
17 "Both Hong Kong and New Zealand have made broad commitments covering a wide range of 
services.  Many of the commitments go beyond not only their existing commitments in the World Trade 
Organisation (WTO), but also their offer in the current WTO service negotiations.   
New Zealand's commitments encompass sectors of Ho ng Kong's traditional priority, such as maritime 
transport services, logistics and related services, audiovisual services and various business services such as 
accounting, auditing and bookkeeping serv ices, computer and related services , management consulting services 
and services incidental to manufacturing.  
They also include areas identified for further promotion in the 2009-10 Policy Address of Hong Kong, 
namely, education services, medical services, testi ng and certification services , environmental services, 
innovation and technology, and cultural and creative industries. 
Hong Kong's commitments are comparable to those of New Zeal and, covering those of particular 
interest to New Zealand, such as educational serv ices, environmental services, professional services, 
construction and related engineering services, air transpor t services, as well as logistics and related services. 
The CEP Agreement also includes a set of robust disciplines on domestic regulation.  It ensures that 
measures affecting trade in services are transparent, administered in a reasonab le, objective and impartial 
manner, and do not become unnecessary barriers to trade.  
Recognizing that education is an area of mutual interest, the two sides 
have also agreed to enter into an arrangem ent to promote cooperation in this field."  
Source:  http://www.tid. gov.hk/english/trad e_relations/hknzcep/k ey_outcomes.html . and 
 http://www.mfat.govt.nz/downloa ds/trade-agreement/hongkong/nz-hk-cep-publicity-booklet.pdf , Section 9, 
"Liberalising Trade in Services".   WT/REG291/1 
Page 25  
 
 
77. Chapter 13 Article 7.2 provides that Articles 4, 5, 6 and 12 do not apply to any measure that a 
Party adopts with respect to the sectors, sub-sector s or activities listed in its Schedule to Annex II to 
Chapter 13.   
78. Annex II to Chapter 13 contains a Headnote.  Paragraph 2 of the Headnote provides that the 
Annex II Schedule of a Party sets out, pursuant to Article 7.2, the specific sectors, sub-sectors or 
activities in respect of which a Party may maintain  existing or develop new or more restrictive 
measures that do not conform with Articles 4, 5, 6 or 12 of the Agreement.  Pursuant to paragraph 4 of 
the Headnote, each entry records the sector covere d, the industry classification or CPC code, the 
Article 7 obligation concerned, a description of th e nature or scope of the measures, and existing 
measures (for transparency purposes only).  The An nex II Schedule of Hong Kong, China, records 28 
such reserved entries, in respect of Articles 4, 5,  6 and 12 of Chapter 13.  New Zealand's Schedule 
records 31 reservations, in respect of Articles 4, 5, 6 and 12 of Chapter 13.   
(a) Horizontal Commitments 
79. The schedules of New Zealand to the Agreement contain several reservations for "all sectors".  
One of them raises the threshold for the investment screening procedure from NZ$10 million in the 
GATS schedule to NZ$20 million.  A yearly financ ial reporting requirement for overseas invested 
companies, (also present in New Zealand's GATS Sc hedule) was included, according to New Zealand, 
for transparency purposes in respect  of formal reporting requirements for overseas companies.  It is 
further clarified that although these differ in some respects from the reporting requirements for New Zealand companies under the Companies Act and the Financial Reporting Act, they do not 
constitute less favourable treatment. 
80. The all sectors reservations taken by New Zealand mirror its GATS restrictions on land 
acquisition and control.  While in New Zealand's GATS commitments there is an "unbound" national 
treatment, mode 3, horizontal restriction regarding "enterprises currently in state ownership", the 
Agreement specifies in detail (and therefore improves upon New Zealand's GATS commitments) 
reservations regarding State owned companies:  fu ture measures allowing an enterprise wholly or 
majority owned by the government to be the sole  service supplier or one amongst a limited number of 
suppliers, and measures regarding the sale of any shares in that enterprise to any person including 
according more favourable treatment to New Zealand nationals. 
81. New Zealand has also listed a reservation for future measures regarding the provision of law 
enforcement and correctional services and of social  services established for public purposes in several 
sectors. The terms of this reservation are quasi-iden tical to that used by Hong Kong, China.  In 
addition, for services provided by governmental au thorities, New Zealand has reserved the right to 
restrict the number of suppliers, to impose restri ctions on the composition of senior management and 
board of directors, to require local presence and to  specify the juridical form of the service supplier. 
82. New Zealand has also taken an "all sectors" reservation for future measures regarding the 
allocation, collection and distribution of drinking water, an activity not explicitly covered by the 
GATS classification and for which New Zealand has no GATS commitments.  New Zealand has also 
lodged all sectors reservations for future measures pr otecting historical and natural heritage, animal 
welfare and human health , as well as for future measures regardin g the foreshore, the seabed and the 
exclusive economic zone.  None of these reservati ons has an equivalent in its GATS commitments.  
Like Hong Kong, China, New Zealand has also adopted  the practice of a "GATS floor" (but limited to 
market access) for future measures but in the form of a list of sectors in an "all sectors" reservation. 
(b) Sector-specific commitments 
83. Chapter 13, Article 15 provides that the GATS Annex on Financial Serv ices and Annex on 
Telecommunications are incor porated into the Chapter mutatis mutandis .   WT/REG291/1 
Page 26  
 
(i) New Zealand 
84. The Agreement liberalizes all of the 46 sub sectors of business services including the 20 that 
were already subject to GATS commitments.
18  With the exception of the "all sectors" reservations, 
26 subsectors are fully liberalized19 while some others remain s ubject to certain reservations.  
12 business subsectors are subject to" GATS – floor" types of reservations.20  Other reservations for 
future measures notably concern publicly funded services (some legal services, research services),21 
regulations regarding testing for several scientific services,22 and regulations regarding services 
incidental to agriculture,23 fishing, mining and manufacturing.    
85. The Agreement also liberalizes all of the 24 subsectors of communications services (postal 
services, courier services, telecommunications services, audiovisual services and other 
communication services) including the 19 sectors that were already subject to GATS commitments 
(all telecommunication services and all audiovisual  services save sound recordings and other 
audiovisual services).  There is full liberalization of nine telecom subsectors and courier services 
which are not subject to any reservation save the hor izontal ones.  The reservations for the remainder 
of telecommunication services echo those of the GATS schedule.  There is a generic reservation for 
future measures on postal services and on co-produc tion and the promotion of domestic content for 
audiovisual services as well as for existing measures regarding the allocation of radio and TV frequencies which has no equivalent in New Zealand's GATS commitments.  According to 
New Zealand, the issue of radio frequency spectrum allocation was dealt with in a different manner 
under the GATS as a result of which parties did not generally enter reservations in respect of allocation of radio spectrum.
24  The Agreement fully liberalizes construction services and education 
services, and has a reservation for future measures on the use of certain terms in education services.   
According to New Zealand, in considering applicati ons to use the small set of statutorily protected 
educational terms and titles, account would need to be taken of factor s such as the characteristics of 
the institution, including its standard and diversity  of its research and teaching.  Although these would 
not strictly limit market access or be applied n ecessarily in a discriminatory manner, the reservation 
has been included for full transp arency.  Both sectors were already subject to GATS commitments, 
with complete and extensive sectoral coverage for construction and education respectively.  
Distribution services which were also subject to GATS commitments (save for franchising and "other 
                                                      
18 Legal services, accounting services, taxation servi ces, architectural services , engineering services, 
veterinary services, all types of computer services except  "other computer services", real estate services, all 
types of rental and leasing services, advertising servi ces, service incidental to ag riculture, bu ilding–cleaning 
services, translation services an d services related to patents. 
19 Accounting services, taxation services, architect ural services, engineering services, medical and 
dental services, para-medical services, "other professional services", all type s of computer services except "other 
computer services", real estate services, all types of rental and leasing services, advertising services, market 
research services, service incidental to energy distribution, security services, maintenance and repair of 
equipment, building–cleaning serv ices, packaging services, prin ting and publishing services. 
20 Integrated engineering services, urban planning services, "other computer services", management 
consulting services and services related to management consulting, services incidental to animal husbandry, 
placement and supply of personnel, ph otographic services, credit reporting se rvices, collection agency services, 
convention services. 
21 New Zealand explains that this reservation has b een included for completeness in the context of the 
negative list approach to scheduling in the Agreement, wh ereas in the GATS Article XV deals with the question 
of services subsidies. 
22 Although there are no immediate re gulatory barriers to entry in thes e areas, it is clarified that the 
reservation relates to circumstances in which the Government may wish to favour domestic suppliers or Government enterprises to carry out these specific technical testing and analysis services which have the 
potential to impact on public health and safety. 
23 The reservation, according to Ne w Zealand updates the reservatio n taken in its GATS commitments 
and provides a more precise description of the relevant provisions. 
24 Referred to in WTO document S/GBT/W/3, dated 3 February 1997 (Group on Basic 
Telecommunications Chairman's Note). WT/REG291/1 
Page 27  
 
 
distribution services") are also liberalized.  Se veral reservations on existing and future measures 
relating to distribution, import and export of agricu ltural products echo the restrictions listed in its 
GATS commitments.  Environmental services, for which there are no GATS commitments are liberalized by the Agreement subject to a "GATS floor " reservation for future measures.  According to 
New Zealand, the chapeau in the description section indicates that th e binding with respect to the 
sectors listed under the entry is not to adopt or  maintain any measures inconsistent with 
New Zealand's obligations under Article XVI of the GATS. 
86. Financial services are extensively covered by New Zealand's GATS commitments and are 
fully liberalized excepting a "GATS floor" reservati on for future measures.  Tourism and travel 
services for which there are extensive commitments in the GATS are fully liberalized without any 
reservations.  Health and social services that are not the subject of commitments under the GATS are 
liberalized subject to a reservation for future me asures as well as a specific reservation for future 
measures regarding adoption.  The situation is si milar for recreational, cultural and sporting services 
for which there are no GATS commitments and which are liberalized by the Agreement subject to 
reservations for future measures on cultural he ritage and on gambli ng and prostitution. 
87. Finally the Agreement liberalizes all modes of tr ansport, including those for which there are 
no GATS commitments (internal waterways trans port, space transport, pipelines transport and 
auxiliary services) except for maritime transport wh ere reservations for futu re measures on cabotage, 
registration of vessels, mode 4 and port services have been listed as well as a "GATS offer floor" type 
of reservation for future measures for three mariti me auxiliary services (customs clearance services, 
container station and depot services and maritime agency services).  
(ii) Hong Kong, China 
88. The commitments of Hong Kong, China under th e Agreement liberalize almost all of the 
46 subsectors of business services, including the 20 sectors that were already subject to GATS 
commitments.
25  Such liberalization is not subject to any reservations in over 20 subsectors.  Existing 
or future reservations have been listed for the other subsectors.26  
89. The Agreement also liberalizes most of the 24 subsectors in communication services (courier, 
telecommunications and audiovisual services) including those that were already subject to GATS commitments (e.g. courier services, six out of  15 telecommunications services, two out of 
six audiovisual services).
27  This liberalization is not qualified by any reservation for four audiovisual 
services (motion picture and videotape production and distribution services, sound recordings and 
dubbing) and for "other communication services."  The remainder of communication services are 
subject to certain reservations.  The extent of tho se reservations is sometimes limited either to the 
level of the GATS commitments (e.g. "GATS floor" fo r courier services) or to a higher level set by 
the combination of the GATS commitments and of th e last services offer made by Hong Kong, China 
in the context of the DDA (e.g. "GATS + offer floor" for telecoms). 
90. In respect of construction services five subsect ors are liberalized including the two that were 
already subject to GATS commitments (finishing wo rk and other construction services) and where a 
"GATS- floor" type reservation applied to four subsectors while the fifth is subject to an existing 
                                                      
25 Accounting, auditing and bookkeeping, taxation servi ces, real estate services on a fee or contract 
basis, rental of ships, of other transport equipment and of other machinery and equipment, advertising services, 
market research, management consulting, services incidental to agriculture and to fishing, maintenance and repair of equipment, building-cleaning services, photograp hic services, convention serv ices, translation services 
and public relations services. 
26 The sectors include services re lated to energy, architecture and engineering services, medical and 
paramedical services ,research and deve lopment services, rental services, serv ices incidental to mining  fishing 
and manufacturing and related scientific  and technical consulting. 
27 Taking document MTN.GNS/W/120 nomenclature as a reference. WT/REG291/1 
Page 28  
 
reservation.  Distribution, education and environm ental services are liberalized, fully in the case of 
environmental services for which there are no commitments under the GATS and subject to a 
reservation for education services (not covered by  GATS commitments ) and for distribution.  For 
financial services the commitments are equivalent to its GATS commitments and DDA offer.  Health 
and social services that were not covered by the GATS remain unbound.  Tourism services which 
were partially covered by GATS commitments are li beralized subject to a "GATS floor" reservation.  
Recreational, cultural and sporting services th at were only marginally covered by GATS 
commitments are liberalized, subject to a number of  existing and future reservations.  In transport 
services Hong Kong, China's GATS commitments only  cover maritime transport services.  The other 
modes of transport are liberalized by the Agreement subject to certain reservations.  Maritime 
transport is subject to two reservations:  one for an existing tax measure as in the GATS 
commitments;  and the second for future measures regarding cabotage.  According to Hong Kong, 
China the residency or local representation requirements for storage and warehousing services, are imposed to maintain compliance with its Dutia ble Commodities Ordinance;  such measures are 
envisaged or provided for in its GATS co mmitments under Article XIV of the GATS. 
E. R
EGULATORY PROVISIONS  
1. Domestic regulation 
91. Chapter 13, Article 9 is concerned with Domestic  Regulation and is based on Article VI of the 
GATS.  The obligations contained a pply to all sectors in which there are no reservations.  Article 9.1 
provides that each Party must ensure that all meas ures of general application concerning trade in 
services must be applied in a reasonable, objective and impartial manner.  Article 9.2 requires the 
Parties to maintain or institute judicial, arbitral  or administrative tribunals that permit a services 
supplier to seek review of administrative decisions  concerning trade in services (and compensation if 
appropriate).  Article 9.3 establishes requirements fo r the consideration of an authorisation for the 
supply of a service.  Article 9.4 requires that an y measures relating to qualification requirements and 
procedures do not constitute unnecessary barriers to tr ade in services.  Article 9.6 requires that any 
outcome from negotiations under Article VI (4) of th e GATS shall be reviewed by the Parties jointly 
to determine if the results could be incorporated in to the Agreement.  Article 9.7 provides that nothing 
in the Article or Annex III to Chapter 13 will apply to any measure consistent with reservations taken 
under Annex I or II Schedules to Chapter 13. 
92. Annex III to Chapter 13 sets out disciplines on Domestic Regulation.  Paragraph 1 of 
Annex III notes that the purpose of the Annex is to en sure that domestic regulations do not constitute 
unnecessary barriers to trade in services between the Pa rties.  The Annex also describes requirements 
on transparency, licensing and procedures, qualificat ion and procedures and technical standards.  The 
"necessity test" is incorpor ated into the disciplines.28 
2. Recognition 
93. Chapter 13, Article 10 concerns recognition of education, experience, qualifications, licences 
or certification granted to services suppliers in the other Party.  Article 10.2 provides that when a 
Party recognises the education, experience, qualificat ions, licences or certification granted to services 
suppliers in a non-Party to the Agreement, it is not  obliged to afford recognition to service suppliers 
of a Party to the Agreement but shall afford adequa te opportunity to the other Party, upon request, to 
negotiate its accession to such an agreement or arra ngement or to negotiate one comparable with it 
(Article 10.3).  Where a Party accords recognition au tonomously it shall afford adequate opportunity 
for the other Party to demonstrate that education or  experience obtained, requirements met, or licences 
or certificates granted in the other Party should be  recognized (Article 10.3).  Article 10.4 requires 
that a Party must not accord recognition in a manne r that would constitute a means of discrimination 
                                                      
28 For example paragraphs 6, 12, 26 and 36 of Annex III to Chapter 13. WT/REG291/1 
Page 29  
 
 
between countries in respect of recognition or a disguised restriction on services.  Article 10.5 exhorts the Parties to facilitate dialogue between respec tive regulators or industry on recognition.   
3. Subsidies 
94. Chapter 13, Article 2.2(c) provides that the Ch apter does not apply to subsidies provided by a 
Party.  Article 11 provides that notwithstanding Artic le 2.2(c), the Parties shall review the issue of 
disciplines on services subsidies in the light of an y disciplines agreed under Ar ticle XV of the GATS, 
and a Party that considers itself adversely affect ed by a subsidy of the other Party may request 
consultations on such matters.   
4. Safeguards 
95. The Agreement contains no provisions on services safeguards.   
5. Other 
96. In Chapter 13, Article 13.1 and 13.2, the Parties agree to not permit any monopoly or 
exclusive supplier of a service to act in a manner inc onsistent with the Parti es obligations in Articles 
4, 5, 6 and 12 and the Schedules to Annexes I and II of the Chapter. 
97. The Parties shall consult within two years of en try into force of the Agreement and at least 
every three years thereafter or as otherwise agreed , to review the implementation of Chapter 13 on 
trade in services and consider other trade in services issues of mutual interest, with a view to the 
progressive liberalization of bilateral trade in servi ces on a mutually advantageous basis (Chapter 13, 
Article 8). 
 
F. S
ECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  
98. Annex IV to Chapter 13 contains obligations undertaken by both Pa rties in respect of 
deepening co-operation in education services.  Unde r paragraph 4 of Annex IV the Parties agree to 
enter into an Arrangement between the Education Bu reau of Hong Kong, China and the Ministry of 
Education of New Zealand to promote co-operation and exchange of staff and expertise in education.  
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. TRANSPARENCY  
99. Chapter 15 of the Agreement contain provisions concerning transparency.  Article 1 provides 
that the Chapter applies to administrative rulings of general application falling under the Agreement.  
Article 2 requires the Parties to ensure that laws regulations, procedures and administrative rulings of 
general application with respect to any matter c overed by the Agreement must be notified or made 
available promptly to the other Party within 90 da ys of implementation or en forcement.  The Parties 
are invited to publish any such measure in advan ce and provide an opportunity for comment to the 
other Party.  Under Article 3, the Par ties agree to notify existing business laws29 as well as to 
cooperate and exchange inform ation on changes thereto.   
100. Chapter 15, Article 4.1 concerns reviews a nd appeals and requires the Parties, "where 
warranted" to establish or maintain judicial, quasi-j udicial or administrative tribunals to review and 
correct final administrative actions covered by the Agreement.  Article 4.2 establishes minimum 
                                                      
29 Per Chapter 15, Article 3.2 "… the term business law means domestic laws of a Party which relates 
to security markets, insurance markets, insolvency, corporate governance or other similar business activities."   WT/REG291/1 
Page 30  
 
procedural requirements for such tribunals.  Article 5 requires the Parties to establish contact points in 
respect of the matters covered by the Chapter.  Article 6 establishes additional requirements for the 
discharge of the obligations contained in Article 2.1 of the Chapter in relation to interested Parties.  
Article 7 contains further obligations and encour agement to the Parties to share information on 
measures that may indirectly impact upon the operation of the Agreement.   
B. C
URRENT PAYMENTS AND CAPITAL MOVEMENTS  
101. Chapter 19, Article 6 permits Measures to Safegua rd the Balance of Payments when a Party is 
in serious balance of payments and external fi nancial difficulties, in accordance with the GATT 1994 
and the WTO Understanding on the Balance-of-Payme nts Provisions of the General Agreement on 
Tariffs and Trade 1994 for goods, and pursuant to Ar ticle XII(2) of the GATS.  Article 6.4 requires 
the Party taking any such action to commence consulta tions with the other Party within 45 days of 
taking such measures.   
C. EXCEPTIONS  
102. Chapter 19 Articles 1-6, concern Exceptions.  Article 1.1 incorporates by reference 
Article XX of the GATT 1994, its interpretative notes and Article XIV of the GATS (including its 
footnotes).  Article 1.2 clarifies that Article XX( b) and (g) of the GATT 1994 and Article XIV(b) of 
GATS as incorporated into the Agreement include m easures relating to the conservation of living and 
non-living natural resources.  Article 1.3 specifically  reserves the right of a party to take measures 
required to protect national works or specific sites of historical or archaeological value or to support 
creative arts30 of national value.31   
103. Chapter 19 Article 2 defines security exceptions  under the Agreement.  Article 2.1 notes that 
the Parties are not required to provide access to information that concerns "essential security 
interests".  The Parties are expressly not preven ted from taking actions they consider necessary to 
protect those same interests in relation to traffi c in arms, ammunition and implements of war or 
supply of services in relation thereto.  
104. Chapter 19, Article 3 notes the Treaty of Waitangi  and reserves to New Zealand the right to 
take measures in fulfilment of its obligations u nder that Treaty, provided that any such measures do 
not constitute disguised or arbitrary restrictions upon persons or goods from the other Party.  Article 4 
deals with taxation measures.   
D. ACCESSION AND TERMINATION  
105. Chapter 20, Article 3 provides that the Agreement is open to accession or association on 
terms to be agreed between the Parties by any Me mber of the WTO or by other State or Separate 
Customs Territory.  The Agreement may be termin ated by either Party on giving 180 days written 
notice to the other Party (Art. 4). 
E. INSTITUTIONAL FRAMEWORK  
106. Chapter 17, Articles 1-4 set out the Administrative and Institutional Provisions of the 
Agreement.  Article 1 establishes a Joint Commissi on.  The functions of the Joint Commission are set 
out in Article 2 and include re viewing and considering any matte r relating to the functioning and 
                                                      
30 Note footnote 29 to the Agreement contains an inclusive definition of activities constituting 
"creative arts".   
31 "subject to the requirement that such measures are not applied in a manner which would constitute a 
means of arbitrary or unjustifiable discrimination betw een the Parties where like conditions prevail, or a 
disguised restriction on trade in goods or services" (Chapter 19 Article 1.3). WT/REG291/1 
Page 31  
 
 
implementation of the Agreement, considering any proposal to amend the Agreement and supervising 
the work of all the committees and working groups  established under the Agreement.  The Parties 
indicate that no other committees and working groups  have been established.  The Joint Commission 
shall meet within one year of the entry into fo rce of the Agreement and every second year thereafter 
or as otherwise mutually determined by the Parties.  The first Joint Commission meeting is to be held 
on 16 March 2012. 
107. Article 4 of Chapter 17 requires that the Parties undertake a general review at ministerial level 
of the Agreement, including of matters relating to liberalization, co-operati on and trade facilitation, 
within two years of its entry into force and at  least every three years thereafter unless otherwise 
agreed by the Parties.  The conduct of such gene ral reviews shall, where possible, coincide with 
regular meetings of the Joint Commission. 
108. Chapter 13 Article 16 establishes a Committee on Trade in Services, for the effective 
implementation and operation of Ch apters 13 and 14 of the Agreement and to explore measures for 
the further expansion of trade in services between the Parties.  The Committee is mandated to meet 
within the first year of entry into force of the Ag reement and subsequently as mutually determined by 
the Parties.  The Committee is due to ho ld its inaugural meeting on 15 March 2012. 
F. DISPUTE SETTLEMENT  
109. Chapter 16, Articles 1-16, and its Annex (Model Rules of Proc edure for Arbitral Tribunals) 
are concerned with dispute settlement under the Agreem ent.  Article 2 defines the scope and coverage 
of the Agreement.32  Article 2.2 provides that the customary rules of treaty interpretation of public 
international law will apply.  Article 3 provides th at in the case of a dispute involving the Agreement 
and another Agreement to which both Parties are part y, the complaining Party shall have the right to 
select the forum in which to resolve the dispute.   
110. Chapter 16, Article 4.1 requires the parties to pe rmit adequate opportunity for consultations in 
respect of any matter affecting the Agreement.  Ar ticle 4.2 describes the elements required to be 
included in a written request for consultations, deli vered by one Party to the other.  Article 4.3 
requires that once a request for consultation is made  the respondent Party must reply within 7 days, 
with a view to reaching a mutually satisfactory solu tion within 15 days if the case concerns urgent 
matters such as perishable goods, or 30 days for ot her matters.  Article 4.4 requires the Parties to 
make all efforts to reach a mutually satisfactory so lution.  Article 4.5 provides that if the respondent 
Party does not comply with the time limits set out in Article 4.3, the complaining Party may proceed 
directly to arbitration under Article 6.  Article 5 permits the Parties to, at any time, agree to good 
offices, conciliation or mediation.   
111. Chapter 16, Article 6 permits the establishment of an Arbitral Tribunal, if consultations fail to 
settle a dispute within 30 days in the case of urgent ma tters, or 60 days in other cases, or if a Party 
fails to reply to a request for consultations.  Artic le 6.3 describes the elements required to be entered 
into request for arbitration, such as the measures at issue, the legal and factual basis of the complaint.  
                                                      
32 Note that several Chapters of the Agreement also provide that the provisions of Chapter 16 on 
Disputes Settlement are not applicable (see above). WT/REG291/1 
Page 32  
 
Chart V.1 - Dispute Settlement Provisions under the Agreement 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 Request for Consultations 
30 days (15 for urgent 
matters/perishable goods) 
Consultations 
60 days  
(30 for urgent matters) 
Request fo r establishment of Arbitral Tribunal
30 days 
Tribunal Established 
Initial Report by Arbitral Tribunal to Parties 
Reasonable period of time  
(generall y 12 months ) 
Implementation Non-implementation 
Request for negotiations 
No mutually satisfactory 
agreement within 20 days 
after receipt of request 
Suspension of benefits after 
30 days after notification 
Upon request of the Party 
complained against  
Request for Arbitral Tribunal 
90 days  
(extendable by 30 days)  
Report to Parties 
Binding and Final 90 days 
extendable to  
120 days (60 days for urgent 
matters/perishable 
goods extendable to  
90 days) 10 days after receipt of request 
Negotiations 
30 days 
Final Report by Arbitral Tribunal to Parties If responding Party 
does not reply within  
7 days or does  
not enter into 
consultation within 
specified timeframe. WT/REG291/1 
Page 33  
 
 
112. Chapter 16, Article 7 concerns the composition of Arbitral Tribunals.  Arbitral Tribunals shall 
comprise 3 members, one appointed by each Party and a third by common agreement.  The third 
member is Chair of the Tribunal and must be a na tional of a non-Party to the Agreement.  Under 
Article 7.5, if all three members are not appointed  within 30 days of the request to establish an 
Arbitral Tribunal the Director General of the WTO, at  the request of either Party, is required to make 
the necessary appointments - within 30 days of the submission of a request to the WTO.   
113. All members of the Arbitral Tribunal must meet the required qualifications stated in 
Article 7.6 of Chapter 16, and comply with th e code of conduct established under the WTO Dispute 
Settlement Understanding.  Article 8 sets out the functions and working procedures of the Arbitral 
Tribunals.  Article 9 sets out the rules of procedure of the Tribunal, and incorporates by reference the 
Model Rules of Procedure for Arbitral Tribunals.  Article 9.2 establishes standard terms of reference 
for the Tribunal (unless both Parties agree otherwise).   
114. Chapter 16, Article 10 provides for the termination of proceedings in an Arbitral Tribunal, by 
consent, or by suspension (in which case the pr oceedings are extinguished after 12 months of 
suspension).  Article 11 describes the procedural a nd substantive requirements for the Report of the 
Arbitral Tribunal.  Article 12.1 provides that the find ings and rulings of the arbitral tribunal shall be 
final and binding upon the Parties.  Article 12.2 provides that the Party concerned must comply with the findings and rulings within a reasonable period  of time.  Article 12.3 requires the Tribunal to 
present its report to the Parties within 60 days of th e composition of the Tribunal, and shall specify the 
reasonable period of time in the particular case.  Article 13 concerns compliance within the reasonable 
period of time established in the Report of the Tri bunal.  When there is disagreement about whether a 
Party has complied with the rulings of a Tribunal, the dispute will be regulated under the procedures 
set out in Chapter 16, and the (compliance) Tribuna l shall report within 90 days of composition.  If 
required, Article 13.2 permits the Tribunal to extend its deadline by a further 30 days. 
115. Chapter 16 Article 14 concerns compensati on and suspension of benefits under the 
Agreement if non-compliance with a ruling of a Tribunal has been established pursuant to 
Article 13.1.  Article 15 provides for Tribunal re view of the exercise of the right to suspend 
concessions (pursuant to Article 14).  Article 16 provi des that each Party shall bear its own costs, 
unless the Tribunal decides otherwise.   
G. R
ELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
116. Except as noted above where the Parties agreed  to specifically grant improved access to the 
other Party if the Party grants additional liberali zation to a non-Party, Chapter 18 Article 3 notes that 
nothing in the Agreement shall derogate from the ex isting rights and obligations of either Party under 
the WTO Agreement or any other applicable internati onal agreement to which it is a Party or which is 
applicable to its Area.  If any inconsistency is  identified between this Agreement and any other 
applicable agreement, the Parties shall immediat ely consult with a view to finding a mutually 
satisfactory solution in accordance with the cu stomary principles of international law. 
117. Chapter 18 Article 4 notes that the parties shall continue co-operation in the context of the 
New Zealand - Hong Kong, China Environment Co -operation Agreement and the Memorandum of 
Understanding on Labour Co-opera tion between New Zealand and Hong Kong, China concluded 
separately from, but at the same time, as the Agreement.   
118. Chapter 19 Article 3 provides that nothing in the Agreement shall prevent New Zealand from 
adopting any measures it deems necessa ry to accord more favourable treatment to Maori in respect of 
matters covered by the Agreement including in fulf illing its obligations under the Treaty of Waitangi.  
Article 4.2 on Taxation Measures provides that the Agreement shall only create rights or impose obligations in relation to taxation if the sa me are created in the WTO Agreement.   WT/REG291/1 
Page 34  
 
Table V.1 
Hong Kong, China and New Zealand:  Partic ipation in other RTAs (notified and non-notified in force), as of December 2011 
Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
HONG KONG , CHINA  
China 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
NEW ZEALAND  
ASEAN-Australia/New Zealand 01.01.10 Goods & Se rvices 2010 GATT Art. XXIV & GATS Art. V 
China 01.10.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Brunei, Chile, New Zealand, 
Singapore (Trans-Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Thailand 01.07.05 Goods & Services 2005  GATT Art. XXIV & GATS Art. V 
Singapore 01.01.01 Goods & Services 2001  GATT Art. XXIV & GATS Art. V 
Australia (ANZCERTA) 01.01.89 
01.01.83 Services 
Goods 1995 
1983 GATS Art. V 
GATT Art. XXIV 
SPARTECA 01.01.81 Goods 1981 Enabling Clause 
Malaysia 01.08.10 Goods & Services Not notified  
 
SPARTECA:  South Pacific Regional Trad e and Economic Cooperation Agreement. 
 
Source: WTO Secretariat.  
 
 H. G
OVERNMENT PROCUREMENT  
119. Chapter 12, concern Government Procurement.  In Article 1 the Parties restate their 
commitment to the APEC Non-Binding Principles on Government Procurement .  Article 2 describes 
the Scope and Coverage of the Chapter and states that it will apply to government procurement by 
entities listed in Annex I, for contracts above a threshold.33  Section A of Annex I comprises the list of 
entities, and Section B the Covered Goods and Servi ces (non-construction) and Construction Services.  
Annex II sets out the procurement thresholds.  Anne x III lists the Single Electronic Point of Access 
for each Party.  Annex IV lists the "Contact Po int" addresses for the purposes of Chapter 12 for each 
Party.   
120. New Zealand schedules 30 public service departments as subject to the commitments.  
According to the New Zealand authorities it is th e same as its Trans-Pacific Strategic Economic 
Partnership (SEP) Agreement commitments and excl udes procurement of public education, health, 
welfare, and research and development services.34  Hong Kong, China has scheduled 59 central 
government entities in Annex I to Chapter 12, and ha s the same coverage as in its commitments under 
the WTO Agreement on Government Procurement (GPA).   
                                                      
33 The threshold is expressed in Special Drawing Rights (SDR) and applies to procurement of goods 
and services valued at or above SDR 130,000 (aro und NZ$289,000 or HK$1.57 million) and SDR 5 million 
(around NZ$11 million or HK$60.7 million) for cons truction services. Source:   "The New Zealand - 
Hong Kong, China Closer Economic Partnership, " http://www.mfat.govt.nz/downloads/trade-
agreement/hongkong/nz-hk-cep-publicity-booklet.pdf "  and WTO document GPA/W/309, dated 25.11.2009. 
Note 5 to the Agreement expressly provides that nothing in the Chapter shall require that the parties 
permit the supply of services in a manner inconsistent with their Schedules to Annex I and II of Chapter 13 
(Trade in Services) or Annex I to Chapter 14 (Movement of Business Persons). 
34 See Section 10 of:  " http://www.mfat.govt.nz/downloads/tr ade-agreement/hongkong/nz-hk-cep-
publicity-booklet.pdf ". WT/REG291/1 
Page 35  
 
 
121. Article 2.2 excludes the coverage of the Ch apter in respect of certain procurement 
transactions including where tenders are not calle d, procurement of goods and services outside the 
Area of the procuring Party for use outside its Ar ea, non-contractual agreements or any form of 
assistance to persons or governmental authorities a nd procurement for international assistance or 
development aid and under an interna tional agreement relating to the st ationing of troops or relating to 
the joint implementation of a project or under procedures or conditions of an international 
organization or funded by interna tional grants or loans.  Article 2.3 contains anti-circumvention 
obligations for entities of each Party.  Article 2. 4 sets out methodology for determining the value of 
contracts.   
122. According to Article 4 the Parties may take any action or not disclose any information 
considered necessary for the protection of essential secu rity interests relating to the procurement of 
arms, ammunition or for national defence purposes.  Nothing in the agreement will prevent the Parties 
from adopting or maintaining measures to protect pub lic morals, order or safety, human, animal or 
plant life (including environmental measures), inte llectual property or relating to goods or services of 
persons with disabilities, of philanthr opic institutions or pris on labour as long as the measures are not 
applied in a manner that would constitute arbitrary or unjustifiable discrimination between the Parties 
or a disguised restriction on bilateral trade.  Article  5 requires the Parties to grant national treatment to 
each others' goods, services and suppliers.  Neither Part y will allow its entities to treat differently or 
discriminate against a locally established supplier on th e basis of the degree of foreign affiliation to or 
ownership by a person of the other Party or on th e basis that the goods or services offered are goods 
or services of the other Party.  Article 5.3 incorpor ates by reference the provisions of Article XVI(1) 
of the WTO Agreement on Government Procurement, in cluding its footnote.  Article 5.4 provides that 
the Chapter does not apply to customs or other duti es or import regulations or to measures affecting 
trade in services.   
123. For procurement covered by the Chapter, the ru les of origin applied to goods and services 
imported from or supplied by the other Party must not be different from the rules of origin applied in 
the normal course of trade between the Parties (Art. 6).  Article 7 sets out obligations in respect of 
non-disclosure of confidential information.  Article  8 requires publication of government procurement 
measures as well as modifications thereto.  Article 9 requires that contracts shall be awarded on the basis of open or selective tendering procedures ex cept under certain circumstances described in 
Article 15, including in cases where tenders we re not submitted or di d not conform to the 
requirements of an open or selective tender or no su ppliers satisfied conditions for participation;  in 
the case of certain goods where there is absence of competition for technical reasons;  for additional 
deliveries by the original supplier.  Where open or  selective tendering is not used the entities are 
required to maintain a written record or report settin g out the circumstances and justification for such 
an alternative procedure.  Article 10 requires a dvance publication of any covered procurement, and 
describes the minimum requiremen ts for such a notice.   
124. Chapter 12, Article 11.1-6 sets out conditions for participation in a procurement.  Article 12.1 
permits entities to establish and use a list of re gistered suppliers qualified to participate in 
procurements.  Article 12.2 requires entities to ma intain a continuous notice inviting interested 
suppliers to apply for inclusion in such a list.  Article 12.3-6 concerns requirements for the notice and 
the rights of suppliers seeking to be inscribed upon the list. 
125. Chapter 12, Article 13 describes the obligations of a Party's entities in relation to technical 
specifications including in terms of performance and functional requirements and where appropriate 
be based on international standards or national tec hnical regulations, recognized national standards or 
building codes.  The requirements of tender docum entation is provided in Article 14.  Article 16 
requires that unless an entity determines that it is not in the public interest to award a contract, it shall 
award it to the supplier that is determined to be capable of undertaking the contract and whose tender 
offers the best value for money, or the lowest pr ice or is the most advantageous in terms of the WT/REG291/1 
Page 36  
 
essential requirements and evaluation criteria set forth in the tender documentation.  Article 17 sets out requirements for advising un successful contract bidders.   
126. Chapter 12, Article 18 on Ensuring Integrity in  Procurement Practices requires Parties to 
ensure that criminal or admini strative processes are in place to address any corruption or conflict of 
interest in government procurement.
35  Article 19.1-4 describes the Parties' obligations to establish 
and maintain domestic procedures to permit unsuccessf ul bidders to seek review of any complaints 
about the award of a contract.  Article 20 require s the Parties to encour age their entities to use 
electronic communications in government procurement.   Article 21 permits the Parties to rectify or 
amend their Annexes (entity list and covered go ods and services) pursuant to the mechanism under 
the Joint Commission established by Chapter 17, Article 2.   
I. INTELLECTUAL PROPERTY RIGHTS  
127. Chapter 11, Articles 1-9 concern Intellectual Property.  Article 1 states the objectives of the 
Chapter, which are to promote the importance, pr otection and enforcement of intellectual property 
rights.  Article 2 establishes the definitions used in the Chapter.  Article 3 contains general provisions 
affirming the Parties rights and obligations under the WTO Agreement on TRIPS (Article 3.1-3) and 
other multilateral agreements on intell ectual property rights which are applicable to both parties;  and 
affirming that subject to the intern ational obligations to which each Party is a party, the Parties may 
provide for international exhaustion of rights, ma y subject certain licence agreements for goods and 
services to recognized consumer interests, and ma y facilitate the exercise of permitted acts when 
technological protection is applied (Article 3.3).  Article 3.4-5 reaffirms particular rights under the 
TRIPS Agreement, including enforcement of civil and criminal laws. 
128. Chapter 11, Articles 4, 5 and 6 concern cont act points, exchange of information and 
co-operation on intellectual property issues respecti vely.  Article 7 exhorts the Parties to reduce 
transaction costs associated with their intellectual property regimes where practicable and taking into 
account local conditions and interna tional developments.  Article 8 provides that subject to their 
international obligations, the Parties may take steps to protect genetic resources, traditional 
knowledge and folklore.  Article 9. 1-2 concerns the holding of cons ultations through contact points, 
and where required, through the Joint Commission con cerning application of the Chapter.  Article 9.3 
notes that any action taken under Article 9 will not pr ejudice the rights and obligations of the Parties 
under either Chapter 16 on Dispute Settlement or under the WTO DSU. 
 
                                                      
35 Hong Kong, China is a Party to the WTO Plurila teral Agreement on Government Procurement.  
New Zealand is not a Party to that Agreement but is an observer.    WT/REG291/1 
 Page 37 
 
 
ANNEX 
 
 1. A comparison between the parties scheduled ta riff elimination set out in the Agreement and 
the MFN rates applied by Hong Kong, China and New Zealand are shown in Table AI.1 
(Hong Kong, China) and Table AI.2 (New Zealand), by all products, agricultural and non-agricultural. 
2. Hong Kong's average applied MFN tariff is alr eady zero and therefore New Zealand exporters 
gain no additional market access as a result of the Agreement.   
Table AI.1 
Hong Kong, China: Indicators of MFN tariff rates a nd preferential rates for imports from New Zealand 
Origin of 
goods Year ALL PRODUCTS Agricultural products a 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 2011 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
New Zealand 2011 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 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data in the WTO-IDB. 
 
3. New Zealand's overall applied average MFN rate in  2011 was 2.4% with 57.7% of tariffs duty 
free on an MFN basis.  Tariffs on agricultural produc ts are lower than non-agricultural products, 1.8% 
compared to 2.5%.  As a result of the Agreemen t in 2011 Hong Kong, China exporters enjoyed an 
absolute margin of preference of 1.4% overa ll, 1.5% on agricultural products and 1.4% on non-
agricultural products vis-à-vis  the prevailing MFN applied tariff.  By 2016, the end of the 
implementation period, all of Ne w Zealand's tariff will be duty free for imports from Hong Kong, 
China. 
Table AI.2 
New Zealand: Indicators of MFN tariff rates and pr eferential rates for import s from Hong Kong, China 
Origin of 
goods Year ALL PRODUCTS Agricultural products a 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 2011 2.4 5.7 57.7 1.8 5.0 63.6 2.5 5.8 56.6 
Hong Kong, 
China 2011 1.0 2.7 63.5 0.3 1.3 77.6 1.1 2.9 61.1 
 2012 0.4 4.5 90.4 0.0 0.0 100.0 0.5 4.5 88.8 
 2013 0.2 2.8 91.6 0.0 0.0 100.0 0.3 2.8 90.2 
 2014 0.1 3.9 98.0 0.0 0.0 100.0 0.1 3.9 97.7 
 2015 0.0 1.9 98.0 0.0 0.0 100.0 0.0 1.9 97.7 
 2016 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 
a WTO Definition. 
Note: products with specific duties are excl uded in the calculation of tariff averages. 
Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by New Zealand. 
 WT/REG291/1 
Page 38  
 
4. Table AI.3 shows the market access conditions in Hong Kong, China, for New Zealand's top 
25 exports.  Under the MFN tariff as well as the Agreement, those exports will enjoy duty free treatment, but with no "preferential" rate.   
Table AI.3 – Hong Kong, China:  Market access opportunities under the agreement for New Zealand's top 25 exports to the world  
New Zealand's top export products in 2008-2010 Access Conditions to Hong Kong, China's import markets 
HS number and description of the product  Share in global 
exports (%)  MFN (2011)  
Average MFN  
applied rate 
(%) Duty-free 
040221 -- Not containing added sugar or other 
sweetening matter 8.6 0.0 3 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 5.1 0.0 1 
020230 - Boneless 3.6 0.0 2 
020442 -- Other cuts with bone in 3.2 0.0 1 
040210 - In powder, granules or other solid 
forms, of a fat content, by weight, not 
exceeding 1.5% 3.2 0.0 1 
040510 - Butter 2.6 0.0 1 
040690 - Other cheese 2.4 0.0 1 
440320 - Other, coniferous 2.4 0.0 1 
081050 - Kiwifruit 2.3 0.0 1 
220421 -- In containers holding 2 l or less 2.2 0.0 5 
760110 - Aluminium, not alloyed 2.1 0.0 2 
440710 - Coniferous 1.8 0.0 1 
040590 - Other 1.7 0.0 2 
040490 - Other 1.4 0.0 1 
020422 -- Other cuts with bone in 1.4 0.0 1 
020443 -- Boneless 1.2 0.0 1 
710812 -- Other unwrought forms 1.1 0.0 2 
350110 - Casein 1.1 0.0 1 
190190 - Other 1.1 0.0 4 
210690 - Other 0.9 0.0 7 
350190 - Other 0.9 0.0 1 
510121 -- Shorn wool 0.9 0.0 1 
080810 - Apples 0.8 0.0 1 
470321 -- Coniferous 0.7 0.0 1 
020890 - Other 0.6 0.0 9 
Total of above 53.2  52 
 
Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on in the WTO -IDB and UNSD, Comtrade database. 
 
5. Table AI.4 shows the market access conditions in New Zealand for Hong Kong, China's top 
25 exports, accounting for 49.7% of its  global exports.  Thirty-six tariff lines are already duty free on 
an MFN basis.  Of the 26 that are dutiable, 4 became duty free upon entry into force of the 
Agreement;  18 are to become duty free in 2013 and 4 in 2016 by when all of Hong Kong, China's top 
25 exports will have duty free market access to New Zealand.  WT/REG291/1 
 Page 39 
 
 
Table AI.4 – New Zealand: Market access opportunities under the agreement for Hong Kong, China's top 25 exports to the world 
Hong Kong, China's top export products in 2008-2010  Access Conditions to New Zealand's import markets  
MFN (2011)Duty-free in 
HS number and description of the 
product  Share in global 
exports (%)  Average 
MFN applied 
rate 
(%) No. of tariff lines
Duty-
free Dutiable 2011 2012 2016  
854231 -- Processors and 
controllers, whether or not 
combined with memories, converters, logic circuits, 
amplifiers, clock and 
timing circuits, or other circuits 5.8 0.0 1     
854239 -- Other 4.9 0.0 1     
847330 - Parts and accessories of 
the machines of 
heading 84.71 4.8 0.0 1     
851770 - Parts 3.9 1.7 4 2  2  
852990 - Other 3.0 2.8 4 5  5  
851762 -- Machines for the 
reception, conversion and transmission or 
regeneration of voice, 
images or other data, including switching and routing apparatus 2.7 0.6 7 1  1  
710812 -- Other unwrought forms 2.5 0.0 1     
710239 -- Other 2.3 0.0 1     
854232 -- Memories 1.9 0.0 1     
853400 Printed circuits. 1.8 0.0 1     
847170 - Storage units 1.6 0.0 1     
844399 -- Other 1.6 1.7 2 1  1  
851712 -- Telephones for cellular 
networks or for other wireless networks 1.5 0.0 1     
950300 Tricycles, scooters, pedal 
cars and similar wheeled toys; dolls carriages; dolls; 
other toys; reduced-size 
("scale") models and similar recreational 
models, working or not; 
puzzles of all kinds. 1.3 1.7 2 1  1  
852290 - Other 1.2 2.5 1 2 1  1 
853690 - Other apparatus 1.2 5.0  1  1  
950490 - Other 1.0 5.0  1  1  
850440 - Static converters 1.0 2.5 2 2 1 1  
852580 - Television cameras, 
digital cameras and video camera recorders 1.0 0.0 1     
711319 -- Of other precious metal, 
whether or not plated or 
clad with precious metal 0.9 2.5 1 1  1  
910211 -- With mechanical display 
only 0.9 0.0 1     
950410 - Video games of a kind 
used with a television 
receiver 0.8 5.0  1  1  
611020 - Of cotton 0.8 10.0  1   1 
640399 -- Other 0.8 6.7 1 2   2 
850490 - Parts 0.6 4.2 1 5 2 3  
Total of above 49.7  36 26 4 18 4 
         
 
Note: Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by New Zealand and UNSD, Comtrade database. 
 
 
__________