Research On China-New Zealand Free Trade Area

With the globalization and integration of the world economy, regional economicintegration has been growing rapidly. And, based on the regional trade agreement,bilateral and multilateral trade has a considerable development. Being one of theclassic developing countries, China is finding the new method which related to theFree Trade Area (FTA) to meet the world trend. After signing the China-Chile FTAand China-Pakistan FTA, China start to negotiate with New Zealand in2004. Finally,China and New Zealand signed the China-New Zealand Free Trade agreement after15rounds negotiation. Such agreement has a significant meaning for China because itconcluded an embarrassing history that China has no agreement with developedcountries before.The report will analyze the China-New Zealand Free Trade Area by using theregional economic integration theory. Moreover, author will discuss the politicalbackground, international situation, and economic activities of each country and makea contrast to illustrate why the first developed partner was New Zealand. Based on thetheories and outcomes, the analysis of economic effect, political effect, and strategiceffect will be involved in the article, and the possible issues between the state partieswill be identified as well. By analyzing the negative factors which may block thedevelopment of Chinese-New Zealand FTA, the article will give out an appropriatestrategy to deal with the possible issues. The article will also discusses deeply thepositive prospects of the FTA to prove that the necessity of building the FTA.