Photo: VCG

China and New Zealand have signed an upgrading protocol of their free trade deal (FTA) on Tuesday with new commitments in cargo and service trade market entry, investment and other key aspects, an important move for China to upgrade free trade zones and implement multilateralism for an open global economy.

The upgrading protocol is an elevation based on the Regional Comprehensive Economic Partnership (RCEP), according to a statement on the website of the Chinese Ministry of Commerce.

The new protocol outlines that the two will expand opening-up of lumber and paper products and further optimize trade rules including rule of origin, technical barriers to trade and convenient customs clearance.

In terms of service trade, Chinese authorities will expand opening-up of its aviation, education, finance and other sectors based on RCEP. New Zealand will raise the job quota for Chinese teachers and Chinese tourist guides by 100 percent to 300 and 200, respectively, the statement continued.

In addition, New Zealand will relax the review threshold for Chinese investment, making sure that Chinese investment enjoy the same treatment as members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, it said.

The two sides committed to strengthening cooperation in aspects including e-commerce, competition rules, government procurement and environment and trade. The content about environment and trade is of higher-level than that in RCEP, with the two sides achieving higher-level cooperation in stepping up environment production, strengthening enforcement and implementing multilateral environment protocols.

The upgrading protocol will deepen practical cooperation in a variety of sectors to promote the interests of the two countries.

Meanwhile, signing of the protocol also sends a positive signal of two major economies partnering to combat the pandemic, while also supporting multilateralism and free trade.

According to the statement, the two sides will implement relevant domestic procedures as soon as possible to ensure the implementation of the upgraded deal.

China and New Zealand signed an original FTA in April 2008 and implemented in October that year. They launched upgrading talks in November 2016 and finished the talks in November 2019.