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A free trade deal signed with Malaysia overnight will result in a significant boost in trade with what is a key South East Asian market, says Trade Minister Tim Groser.
The deal builds on the agreement New Zealand signed this year with the 10 members of the Association of South East Asian Nations (Asean), of which Malaysia is a part.
The result is that 95% of goods will be duty free and within seven years all goods tariffs will be phased out.
Some of the key aspects of the deal were in the non-tariff areas with business people allowed to get visas more easily and for longer.
Groser said on full implementation, the agreement would provide duty-savings of more than $10 million per year for New Zealand exporters.
"Malaysia's large and growing population of more than 28 million people presents considerable opportunity for new and enhanced market access for New Zealand's exporters, including in education, environmental, management consulting and veterinary services," he said.
Malaysia is New Zealand's eighth-largest export destination, accounting for almost $1 billion of exports in 2008.
Exports to Malaysia have increased 80% since 2004, which is more than double the rate of New Zealand's export growth to the rest of the world.
"New Zealand's services trade with Malaysia has also expanded, particularly in the education sector with the number of Malaysian international students in New Zealand increasing by over 70% since 2003," Groser said.
Auckland Chamber of Commerce chief executive Michael Barnett, part of the New Zealand delegation in Malaysia, said the agreement was a great opportunity for businesses if they chose to take it.
He said international trade had been volatile over the last year, but analysis showed that growth within Asia held the best prospects for New Zealand exporters.
With the building of other trade relationships in Asia, it was significant that New Zealand's export activity was moving beyond traditional relationships built on product alone.
"Services are now growing and making an important contribution to New Zealand's export earnings from the Asean," Barnett said.
Exporters now needed to grow their exports, and that meant determining competitive advantages.
For Asia, attention to the needs of specific customer segments and outstanding customer service would need to be two of those competitive advantages, Barnett said.
Lain Jager, chief executive kiwifruit marketer Zespri, said kiwifruit was New Zealand's seventh-largest export to Malaysia.
"Malaysia presents significant future growth opportunities for our industry and we already have plans to boost our staff presence here to help educate Malaysian consumers about the nutritional benefits of Zespri kiwifruit," he said.
The elimination of the 15% tariff paid on kiwifruit from 2010 made the market even more attractive.
Sales had grown over 80% in the past two years and the target for next year was over a million trays.
