WELLINGTON: New Zealand on Thursday said a free trade agreement with Beijing signed nearly three years ago had resulted in exports to China almost doubling and helped shield the economy from the global downturn.
Wellington became the first developed nation to sign a free trade deal with Beijing in April 2008, sparking fears among unions and industry bodies that New Zealand would be swamped with cheap Chinese imports.
But a government review said the agreement had boosted trade in both directions, elevating China to New Zealand's second largest trading partner behind Australia.
"New Zealand's exports to China, now worth NZ$4.5 billion ($3.4 billion), have almost doubled in the past two years, with growth in all major export sectors," Trade Minister Tim Groser said.
"This has sheltered New Zealand from the worst effects of the global recession."
The review said total trade between New Zealand and China had increased from NZ$8.5 billion to NZ$11.1 billion between 2008 and 2010 and was on track to double last year's result by 2015.
"The FTA has been a significant factor contributing to growth in bilateral trade, delivering both direct and indirect benefits for New Zealand businesses," it said citing growth in dairy, forestry, kiwifruit, wine, meat, and wool exports.
Australia is in the process of negotiating a free trade deal with China, while South Korea has flagged that it will pursue a similar pact.
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