NZ-UK free trade deal: What were the compromises?
Amid negotiations for a new free trade deal, New Zealand appears to have denied the United Kingdom fewer restrictions on British contractors entering the country for fear it would also cause a ‘‘flood’’ of low-cost Chinese labour.
But New Zealand has, in response to the UK’s wants, agreed to bolster its copyright laws despite previously refusing to do so for prior trade deals.
The Government announced it had reached an ‘‘in-principle’’ New Zealand-United Kingdom free trade agreement, the details of which revealed market access figures – 97 per cent of New Zealand product lines will be tariff-free immediately – and some of the sticking points which had been resolved.
While New Zealand was pursuing greater market access for its major agricultural exports, for the UK open access to New Zealand for British business professionals, visitors, and contractors was a crucial part of the deal.
‘‘All of that is really important in terms of the modern economic relationship . . . financial services, for example, make up 40 per cent of our trade into New Zealand,’’ UK High Commissioner Laura Clarke said.
However, reducing restrictions for contractors – technically skilled people who temporarily enter the country for work – came with a caveat.
The agreement showed that while there would be no ‘‘numerical caps’’ on the number of contractors allowed into the country, the commitment was ‘‘subject to certain safeguards’’. Former diplomat Charles Finny, who was a lead negotiator for the China FTA, said these safeguards, likely to be public interest tests, ‘‘won’t be targeted at the UK, it will be targeted to China’’.
‘‘The UK wanted more than we’ve given, but because we would have to give whatever we’ve given to the UK to China, there are some extra hoops [these] people have to get through before getting approved. It’s going to mean making sure that no New Zealanders [are] available to do the work.’’
Free trade agreements often contain ‘‘most favoured nation’’ clauses, meaning certain benefits provided by a country to another in subsequent deals must also be applied to the earlier deal.
New Zealand signed a free trade agreement with China in 2008. Finny said, under ‘‘most favoured nation’’ provisions, the access granted to business professionals and contractors was one aspect of the UK deal that would need to be provided to China.
‘‘People are concerned there will be a flood of Chinese technicians coming into the country. I have to say I have no concern, but other people do,’’ Finny said
‘‘There will be perhaps a little bit of liberalisation which will apply to the Chinese, but there’ll still be those safeguards.’’
Trade Minister Damien O’Connor said the prospect of the UK free trade deal changing the China agreement ‘‘wasn’t an issue’’.
‘‘In all agreements there is MFN [most favoured nation clauses] and that’s accepted as a part of international trade obligations.’’
New Zealand has also agreed with the UK to bolster its copyright laws. Performer and artists’ rights will be expanded, and a further 20 years added to copyright terms, meaning, for instance, an artist can expect to retain copyright of their work for 70 years after their death instead of 50 years.