Closer economic partnership-New Zealand will increase competition from Hong Kong imports
Although Hong Kong already offers duty-free imports for all countries, the agreement effectively locks in that status for New Zealand companies, who exported goods worth $764 million to the Special Administrative Area in the year to March last year.
The benefits are immediately more tangible for Hong Kong firms, who exported goods worth $203 million to New Zealand in the same period, 47 per cent of which incurred tariffs.
By 2012, 85.6 per cent of current imports must be tariff-free, including whiteware, steel, plastics, furniture and jewellery.
By 2016, all tariffs, including those on clothing and footwear, will be removed.