The Research On The Trade Effect Of China-New Zealand Free Trade Area

Since the 21 st century,global economic development has faced new opportunities and challenges.the role of the WTO has gradually declined.To realize their own development,countries have gradually turned to the construction of foreign free trade zones.Free trade zone is a new form for countries to seek regional economic integration.By building free trade zone with other countries,removing trade barriers between member states and gradually realizing trade liberalization,it is beneficial for member states to complement each other in resource advantages,explore international market,meet product supply and demand,and effectively realize resource allocation and use.At the same time,the establishment of the free trade zone is also conducive to the realization of the free flow of factors in the international,increase investment and facilitate the flow of personnel,to achieve long-term economic development.China free trade area with era pace of construction,vigorously carry out free trade cooperation with other countries,China-New Zealand free trade area of the construction has been carried out for more than 10 years,by studying the present situation and the development of the China-New Zealand FTA analysis trade effect to promote regional integration in our country,provides valuable experience and reference to the international market.By introducing the status quo of china-New Zealand free trade area,this article specifically analyzes the trade characteristics of the two countries,and analyzes and summarizes the trade effects of china-New Zealand free trade area with the help of data model.Firstly,by comparing the trade flows before and after the establishment of the bilateral free trade area,it shows that the bilateral trade flows have increased significantly after the establishment of the free trade area,and the trade volume has made a qualitative leap compared with that before the establishment of the free trade area.It can be seen from the bilateral trade status that the establishment of the free trade area makes the trade volume between China and New Zealand account for an increasing proportion of bilateral trade yearby year.The trade structure of the two countries is concentrated.Secondly,the characteristics of china-new Zealand free trade area were analyzed and summarized through the calculation of the index.It can be concluded that China and New Zealand have a high degree of product concentration in trade,frequent and expanding trade contacts,close trade relations,high degree of bilateral trade dependence,different products of the two countries have their own needs,and China has a trend of deficit due to the development of the free trade area.Thirdly,by building an empirical model,it is concluded that in terms of industrial development,the establishment and development of the free trade zone can give full play to China's labor-intensive advantages and New Zealand's resource advantages.Each of the dominant industries has been developed;It has a positive impact on the total import and export volume,output scale and terms of trade of China and New Zealand,and has a more significant impact on the improvement of social welfare of the two countries.However,there are still deficiencies in the development process of the china-New Zealand free trade area and its potential remains to be tapped.In general,the establishment of china-New Zealand free trade area is very beneficial to the economic development of the two countries.Adhering to the free trade area as a platform to enhance political mutual trust and strengthen economic and trade cooperation can effectively reduce trade friction,realize resource complementary between the two countries,promote the flow of factors,promote technological innovation and personnel exchanges,and achieve common development.