Taiwan has overtaken the United Kingdom to become New Zealand’s sixth-largest export market in recent months. Dairy, meat, and fruit from New Zealand are among the main exports to Taiwan, which is currently worth $1.6 billion to exporters.
Taiwan, which is smaller than Canterbury, is referred to as the “Fruit Kingdom” and produces a large amount of its own fruit. Although not everything is grown there, New Zealand’s apples, cherries, and kiwifruit are well-liked.
Joanne Chen, the company’s marketing manager in Taipei, reported that during the pandemic, sales of Zespri kiwifruit increased by 20%.
Taiwan is one of the world’s second-largest fruit consumers after Spain, consuming 130 kilos of fruit annually per person.
But there is a lot of local produce that New Zealand exporters must compete with.
“We have 85% coming from local fruits, local fruits are cheaper and also very tasty, this is our biggest challenge,” said Ms Chen.
Taiwan, which has its own government and is independent from China diplomatically. While it does not have a formal ally status, New Zealand is unique in that it has a free trade deal with Taiwan. Singapore is the only other nation that is like this.
A fruit vendor at Taipei’s Binjiang Market claimed that the free trade agreement had helped him.
Without taxes, Mr. Lu explained, “the selling price may be reduced, allowing us to sell the kiwifruits more quickly.”
The free trade agreement was struck by New Zealand in 2013 at a time when China was ready to grant Taiwan more space and autonomy. There is no way the deal would have begun today, according to those close to the negotiations. Since Tsai Ing-wen was elected president in 2016, which Beijing perceives as backing Taiwan independence, ties between Taiwan and China have deteriorated.
Taiwan has gained importance as a market for New Zealand because to the free trade agreement, and according to Charles Finny, chair of the Taiwan Business Council, it has room to expand even more.
It has a comparable population to Australia and a comparable economy. Why can’t we do even better in the Taiwan market given how large the Australian market is for us? asked Mr. Finny.
Trading in the opposite direction are electronics.
The majority of the modern microchips used to power electronics worldwide are produced in Taiwan.
The CPTTP, a sizable transpacific trade agreement that includes both New Zealand and Taiwan, has received an application from the Taiwanese government.
The agreement will boost supply chains, according to Taiwan’s foreign minister Joseph Wu, who expressed the hope that New Zealand would support Taiwan joining it.
“If Taiwan is able to have stronger commercial relations with New Zealand, I’m confident it’s going to be beneficial for New Zealand,” said Mr. Wu. “Taiwan has an important place in the international supply chain, especially in the semi-conductor supply chain.”
Trade in both directions between Taiwan and New Zealand is currently worth $3 billion and has room to increase.
Cushla Norman’s trip to Taiwan has been funded by the Asia New Zealand Foundation..
Experts predict that the $3 billion NZ-Taiwan trade sector can expand.
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