Negotiations for a free trade agreement between New Zealand and Taiwan are nearing a conclusion, with a deal likely to be struck in coming months, according to Fairfax New Zealand.
The agreement would solidify Taiwan as one of New Zealand’s key trading partners, with the South East Asian nation importing more than NZ$800m (US$648m) worth of New Zealand products in the 12 months to June 2012.
It would also ease the pressure on New Zealand exporters, who claim to currently be paying tariffs of up to 20 per cent in Taiwan.
Pending approval, it would be the first free trade agreement signed by New Zealand since 2010.
The terms of the agreement largely hinge on the countries' relationships with mainland China.
New Zealand trade to China has soared since a free trade arrangement was reached in 2008.
Taiwan has a complex relationship with mainland China, stemming from the establishment of the People's Republic of China in 1949, with both countries claiming sovereignty over one another.
Fairfax reported issues surrounding mainland China had been resolved by New Zealand and Taiwanese delegates, despite New Zealand’s adherence to the One-China policy, a condition of its trade agreement.
