NEW ZEALAND business groups have warmly welcomed New Zealand’s ground-breaking free trade deal with China.

About 35 percent of goods from New Zealand will become tariff free by October, with another 31 percent tariff free by 2013. The bulk of the remainder will be tariff free by 2019.

Business New Zealand chief executive Phil O’Reilly said the agreement meant China had the potential to become New Zealand’s largest export destination.

“An enhanced trade relationship with the world’s fastest growing economy is an outstanding achievement,” he said. “Our current position is that we are one of many potential customers buying Chinese goods.

“Following the free trade agreement, the potential will exist for China to become our biggest customer.”

He said it was up to New Zealand businesses to capitalize on the deal by trading with China.

Business Roundtable chairman Rob McLeod said both New Zealand consumers and exporters would benefit from the deal.

Business and investment links would also be strengthened.

“Initial indications are that the agreement is comprehensive and largely free of the restrictions and exclusions of some FTAs.

“It suggests China could well be a force for multilateral trade liberalization in the decades ahead.”

Wellington Chamber of Commerce chief executive Charles Finny said it was the highest quality free trade deal yet signed by China and was the most important for New Zealand since the Closer Economic Relations (CER) signed with Australia 25 years ago. In regards to investment the deal actually went further than CER.

The chamber would have preferred more extensive services coverage, but it was good that it dealt with a number of “behind the border issues.”

Meat and Wool New Zealand chairman Mike Peterson said the agreement would give local farmers “immediate preferential access” for meat exports and certainty of access for wool.

Te Ohu Kaimoana (Maori Fisheries Trust) chief executive Peter Douglas also welcomed the deal which he said should bring benefits to Maori exporters.

“We will need to look at the full detail of the FTA before being able to fully determine just how good this will be for Maori seafood exporters, but this agreement could be a shining light in the current bleak economic outlook.”

Aoteroa Fisheries chief executive Jeremy Fleming also said the detail of the agreement was important, but if it led to the reduction of tariffs on New Zealand seafood then it was positive.(SD-Agencies)