New FTA Possibility for NZ

November 22, 2008 International FinanceNew Zealand Finance  No comments

Indications at the APEC summit show that Peru, Australia and America are looking to join the currently active New Zealand, Singapore, Chile and Brunei Free Trade Agreement (FTA).

According to an announcement made by the Chile Foreign Minister Alejandro Foxley, made on the 21st of November at a meeting of trade ministers at the APEC summit, Australia and Peru are currently looking to join the four country FTA in its next round of expansions. A similar announcement was made in regards to the United States in September.

Currently, New Zealand, Singapore, Chile and Brunei hold a free trade agreement, called the Trans Pacific Economic Partnership (although previously named the P4). It was signed in 2005 and came into force 28th of May 2006. The free trade agreement aims to abolish 90% of tariffs for trade between participating countries by 2015.

There are no details yet of how new entrants into the free trade agreement will affect existing members, in fact it is not yet clear which countries will be participating in them. All APEC members are welcome to apply to the agreement before the commencement of the March 2009 negotiations.