By PHILIPPA STEVENSON
A free trade agreement between Taiwan and New Zealand received a slight nudge this week but still remains on the back burner.
Taiwan's Minister of Economic Affairs Yi-Fu Lin said in Auckland that his country had proposed that negotiations on such an agreement start.
Lin and Trade Negotiations Minister
Jim Sutton discussed the issue at a New Zealand-Taiwan Business Council conference.
They had previously talked about it at an Apec trade ministers' meeting in Mexico last May, Lin said.
But an early agreement seems unlikely.
Sutton's office said a formal proposal had yet to be received, and Lin said continued contact between the two countries on the issue would be at a low level.
The trade offices in both countries would be "a bridge" for further contact, he said.
The two countries already have a strong economic relationship and the two-way trade is worth about $1.4 billion a year.
Taiwan is New Zealand's eighth largest export market, with 70 per cent of exports in the food and beverage sector, including milk powders, beef, kiwifruit and seafood.
In contrast, New Zealand is a niche investment destination for Taiwan and most of its exports here are manufactured goods such as computers, Machinery, metal products and textiles.
Most of its external capital investment is in China and the United States.
Abpout 40 Taiwanese businesses were represented at a trade show in Auckland last week and Lin said they were keen to explore opportunities in New Zealand.
Most countries were seeking investment and there had to be a "good package" to attract investors. New Zealand already had a good business investment environment, he said, but it could consider tax holidays for investors to improve the package.
Educating Taiwanese students in New Zealand was estimated to be worth $50 million last year, and a reciprocal year-long working holiday scheme for young people has been proposed to strengthen ties.
