King Annette: New Zealand-China Free Trade Agreement Bill — Second Reading 
King Annette: New Zealand-China Free Trade Agreement Bill — Second Reading 
[Volume:648;Page:17264] 
Hon ANNETTE KING (Acting Minister of Trade) 
: 
 I move  
That the New Zealand-China Free Trade Agreement Bill be now read a second time 
. I begin by thanking the Foreign Affairs Defence and Trade Committee for its consideration of the bill and for reporting the bill back to the House with the recommendation that it be passed with no amendments. 
The select committee also conducted an international treaty examination of the Free Trade Agreement between the Government of New Zealand and the Government of the People’s Republic of China. It is clear that the select committee has carefully considered the views of submitters. The report reflects the strong support in this House and in the wider business community for the free-trade agreement and it also reflects alternative views. The select committee sees the agreement as being a major event in New Zealand’s history and as being fundamental to the future economic well-being of this country. Among the main benefits that the select committee highlights are the increased access for New Zealand trade and investment the frameworks established for resolving issues in the future the support to New Zealand’s objective of broadening and deepening relations in the Asia-Pacific region and the support to New Zealand’s wider trade policy interests in strengthening economic integration in the Asia-Pacific region and multilaterally. The select committee notes that the agreement will bring considerable value to New Zealand and to our economy. 
The agreement is China’s first free-trade agreement with an OECD member country. Being the first developed country to negotiate a comprehensive agreement with China gives New Zealand a time for unique competitive advantage. It raises New Zealand’s profile in China. Chinese tariffs on New Zealand products cost exporters almost $120 million each year. The agreement will remove tariffs on 96 percent of New Zealand’s current exports to China. The removal of these tariffs will deliver significant gains for our exporters. I acknowledge the select committee’s view that the removal of the remaining New Zealand tariffs on Chinese imports will be done in such a way as to allow New Zealand industry time to adapt. The removal of Chinese tariffs under the agreement will result in a far greater increase in New Zealand’s exports to China than in Chinese exports to New Zealand in significant part because Chinese tariff levels are currently higher than those of New Zealand. 
In addition to reducing barriers to our trade with China the agreement promotes cooperation in a broad range of areas including intellectual property which was identified as an important area by submitters. It provides a platform for further engagement at governmental cultural and people-to-people levels. There are safeguards to ensure the New Zealand Government retains the right to reasonably regulate in the interest of public welfare including to protect public health safety and the environment. As the select committee notes investment is likely to become an important aspect of the China - New Zealand relationship. The legally binding agreements on labour and the environment will enhance communication and cooperation on those issues and we believe help towards achieving the objectives of raising working standards and improving environmental protection in both countries. 
The select committee notes concerns raised by a number of submitters on human rights. Experience shows that engagement with countries speeds up the process of reform and change but that isolation slows down that process. I share the select committee’s hope that New Zealand’s closer relationship with China as a result of this agreement will make a small but positive indirect contribution to China’s reform in that area. 
The bill amends New Zealand’s domestic legislation so that the agreement can be brought into force. 
In conclusion I say the agreement is important for New Zealand as a trading nation. It will give us access to a vast market for our goods services and investment. The accompanying agreement on labour and the environment will encourage cooperation in those areas. The bill’s passage will be one of the final steps in a long process of bringing the agreement into being. I commend this bill to the House.