A NEW FIRST

This month, the New Zealand government announced an ambitious goal of having free trade agreements cover 90 percent of the country's exports by 2030, up from 53 percent now.

Trade Minister Todd McClay told Xinhua New Zealand sees China as a constructive partner. "So their agreement to launch an upgrade to our FTA is a demonstration that they support a high-quality agreement and they're starting to show leadership in the RCEP negotiations which New Zealand is also involved in."

"For any country in the world that believes trade agreements can deliver for their economies and their citizens, the best way to do this is with a high quality ambitious comprehensive agreement," said McClay.

"Certainly I would argue that the China-New Zealand FTA is one of those and we'll be looking to make sure that the level of ambition delivered to the RCEP agreement is also extremely high," McClay added.

McClay said the upgrade is another first to add to the "four firsts" already achieved in New Zealand's relations with China: the first developed country to agree to China's accession to the World Trade Organization in 1997; the first country to recognize China as a market economy in 2004; the first developed country to start FTA negotiations with China in 2004; and the first developed country to successfully conclude FTA negotiations with China in 2008.

"It shows the maturity and strength of the relationship," he said, adding New Zealand-China trade ties have grown significantly since the FTA came into effect.

PEOPLE-POWERED TRADE

So what specifically is on the agenda?

"For New Zealand, it's about finding ways to ensure that the high-quality agreement that we signed with China eight years ago remains relevant and keeps pace with the growing relationship, but in particular we'll want to look at services and investment and the digital economy," said McClay.

"We also think that non-tariff measures are important. The current agreement has a way of dealing with non-tariff measures or non-tariff barriers, but we want to make sure that it continues to deliver," he said.

Better access for meat, especially the highest quality fresh meat, said Beard, horticulture and processed forestry products are also viewed as important for New Zealand.

Much of the negotiation will focus on updating administrative requirements and regulations, though these are evolving as trade expands.

Visas should also be on the agenda so more New Zealanders can take up internships and work opportunities in China, said Asia New Zealand Foundation Executive Director Simon Draper.

While all this is important to growing trade, the FTA upgrade would be a bonus in itself, New Zealand China Trade Association Chairman Martin Thomson told Xinhua.

"The other aspect is that an FTA upgrade is very good for the profile of New Zealand within China. It just brings with it a whole lot of publicity and focus and would be seen in China as a positive step in the relationship of the two countries," Thomson said.