New Zealand And Gulf States Agree FTA

by Mary Swire, Tax-News.com, Hong Kong

03 November 2009

New Zealand’s Trade Minister, Tim Groser, has disclosed that negotiations on the New Zealand-Gulf Cooperation Council (GCC) free trade agreement (FTA) have been successfully concluded.

Mr Groser observed that the FTA is a significant achievement for New Zealand, and secures new and improved access into some of New Zealand’s most important Middle East markets.

"While there has been a real focus on the Asia Pacific region of late, this FTA will provide a strong platform for export growth into a region that is likely to emerge strongly from the global recession," he stated, continuing:

"Exports to GCC - made up of Bahrain, Oman, Kuwait, Saudi Arabia, the UAE and Qatar - totalled NZD1.3bn (USD940m) in the year to June 2009, an increase of 218% since 2000. The group now ranks as our seventh largest trading partner with bilateral trade worth NZD3.85bn."

"The agreement with GCC offers valuable commercial advantages to New Zealand businesses leading to a stronger and more diversified presence in both the GCC states and the wider Middle East.”

While New Zealand's major exports to the region are dominated by primary sector products such as dairy, sheep meat and wood, there is increasingly a strong interest in services such as ICT, education, environmental and professional services.

Officials now have to complete the legal verification process before details of the FTA are able to be made public and signed. It is thought that the agreement will be signed in the first half of 2010.

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