Hong Kong’s Trade and Economic Relationship with New Zealand

(as at June 2020)

(a) Points to Note

  1. In 2019, New Zealand was Hong Kong’s 37th largest trading partner.

  2. Bilateral trade in goods between Hong Kong and New Zealand amounted to HK$11.4 billion (US$1.5 billion) in 2019. The average annual growth rate was 8.3% from 2015 to 2019.

  3. In 20191, Hong Kong was the world’s 8th largest trading entity in merchandise trade while New Zealand ranked 59th.

  4. Hong Kong was New Zealand’s 20th largest trading partner, 7th largest export market and 45th largest source of imports in 20192.

  5. In 2019, HK$7.4 billion3 (US$0.9 billion) worth of trade between New Zealand and the Mainland of China was routed through Hong Kong, representing around 5%4 of the total trade between New Zealand and the Mainland.

(b) Summary of Hong Kong’s Trade with New Zealand

Value in HK million (US million)

2019 % Change
over 2018
Jan-Mar
2020
% Change
over
Jan-Mar
2019
(a) Domestic Exports 54
(7)
+11.1 9
(1)
-17.2
(b) Re-exports


- of Mainland origin
5,205
(664)

3,561
(454)
68.4%*
+1.5


-4.6
1,007
(130)

609
(78)
60.4%*
-26.25


-25.16
(c) Total Exports
[(a)+(b)]
5,259
(671)
+1.6 1,016
(131)
-26.1
(d) Imports 6,140
(784)
+14.1 1,223
(157)
-13.3
(e) Total Trade
[(c)+(d)]
11,399
(1,455)
+8.0 2,239
(288)
-19.6
(f) Balance of Trade
[(c)-(d)]
-880
(-112)
-207
(-27)

* Figure denotes percentage share of Mainland-origin re-exports over total Hong Kong re-exports to New Zealand.


(c) Major Categories of Commodities Traded between Hong Kong and New Zealand in 2019

Domestic Exports to New Zealand
New Zealand ranked 28th among Hong Kong’s domestic exports markets.

The top 3 commodities were (in descending order):
  • Miscellaneous edible products and preparations (21.9%)
  • Musical instruments and parts and accessories thereof; records, tapes and other sound or similar recordings (10.8%)
  • Jewellery, goldsmiths' and silversmiths' wares, and other articles of precious or semi-precious materials (9.7%)

Re-exports to New Zealand
New Zealand ranked 44th among Hong Kong’s re-exports markets.

The top 3 commodities were (in descending order):
  • Telecommunications and sound recording and reproducing apparatus and equipment (29.9%)
  • Power generating machinery and equipment (17.3%)
  • Office machines and automatic data processing machines (12.3%)

Imports from New Zealand
New Zealand ranked 31st among Hong Kong’s sources of imports.

The top 3 commodities were (in descending order):
  • Dairy products and birds' eggs (42.3%)
  • Vegetables and fruit (12.6%)
  • Power generating machinery and equipment (10.5%)

1 Source: WTO Statistics Database.
2 Source: Statistics New Zealand.
3 Trade between New Zealand and the Mainland routed through Hong Kong is estimated by summing up (i) New Zealand-origin re-exports to the Mainland; and (ii) Mainland-origin re-exports to New Zealand (Source: C&SD).
4 The percentage = (a) Trade routed through Hong Kong ÷ (b) Total trade (including re-exports) between the Mainland and New Zealand. While (a) is worked out from statistics compiled by C&SD (please see footnote 3), (b) is obtained by adding total trade figure from the Mainland’s General Administration of Customs and C&SD’s figure of Mainland-origin re-export to New Zealand via Hong Kong. Since two different sources of data are involved, the calculated percentage is solely indicative.
5 The decrease was mainly due to the decrease in re-exports of “Engine and motors. Non-electric (other than those of groups 712. 713 and 718); parts of these engines and motors” by 29.9% in Jan – Mar 2020. The product item accounted for 26.1% of the re-exports to New Zealand in the same period in 2019.
6 The decrease was mainly due to the decrease of re-exports of “telecomminications equipments; and parts, and accessories of apparatus falling within division 76” by 28.6% in Jan – Mar 2020. The product item accounted for 35.9% of the Mainland origin re-exports to New Zealand in the same period in 2019.

 

(a) Points to Note

  1. In 2018, New Zealand was our 27th largest trading partner, 30th largest export market (0.2% of total exports of services), and 26th largest source of imports (0.4% of total imports of services).

  2. In 20187, Hong Kong was the world’s 18th largest commercial services trading entity while New Zealand ranked 50th.

  3. The average annual growth rate in bilateral trade in services between Hong Kong and New Zealand was 0.6% from 2014 to 2018. The bilateral trade in services increased by 6.2% in 2018.


(b) Summary of Hong Kong’s Trade in Services with New Zealand

Value in HK million (US million)

2017 % Change
over 2016
2018 % Change
over 2017
(a) Exports 1,527
(196)
+14.2 1,502
(192)
-1.6
(b) Imports 2,078
(267)
+8.6 2,325
(297)
+11.9
(c) Total Trade
[= (a) + (b)]
3,605
(463)
+10.9 3,827
(488)
+6.2
(d) Net Export of Services
[= (a) – (b)]
-551
(-71)
- -823
(-105)
-


(c) Major Groups of Service Traded between Hong Kong and New Zealand in 2018

Exports to New Zealand
New Zealand ranked 30th among Hong Kong’s exports markets (0.2% of total exports of services).

From 2014 to 2018, the average annual growth rate was -2.2%.
  • Data on the top three components of services imports is not available.

Imports from New Zealand
New Zealand ranked 26th among Hong Kong's sources of imports (0.4% of total imports of services).

From 2014 to 2018, the average annual growth rate was 2.6%.
  • Data on the top three components of services imports is not available.

7 Source: WTO Statistics Database.

  1. In a survey covering some 9 000 companies in Hong Kong with parent companies located outside Hong Kong, as at June 2019, there were less than 5 regional headquarters, less than 5 regional offices and 13 local offices in Hong Kong with parent companies located in New Zealand.

  2. At the end of 2018, New Zealand was outside the 20 major sources of inward direct investment (IDI) into Hong Kong and outside the 20 major destinations of outward direct investment (ODI) from Hong Kong. As such, relevant investment data are not released by C&SD.

Hong Kong and New Zealand signed the Hong Kong, China – New Zealand Closer Economic Partnership Agreement on 29 March 2010. Entering into force on 1 January 2011, the Agreement is Hong Kong’s first free trade agreement (FTA) with a foreign economy.

Hong Kong and New Zealand signed the Investment Promotion and Protection Agreement (IPPA) on 6 July 1995. The IPPA came into force on 5 August 1995.

The Hong Kong – New Zealand Arrangement on Co-operation on Wine-related Business was signed on 28 October 2009 in Hong Kong. Under the arrangement, both places will strengthen co-operation in the promotion of wine-related trading, investment, tourism and education and in the fight against counterfeit wine.

  1. New Zealand is regarded as one of the countries along the “Belt and Road” Initiative. It was ratified as a founding member of the Asian Infrastructure Investment Bank in December 2015.

  2. A Memorandum of Arrangement On Strengthening Cooperation on the Belt and Road Initiative was signed between the Mainland of China and New Zealand during Chinese Premier Li Keqiang’s visit to New Zealand on 27 March 2017.

New Zealand* Hong Kong#
2017 2018 2019 2017 2018 2019
Population
(million)
4.8 4.9 [5.0] 7.4 7.5 7.5^
Current GDP
(US$ billion)
200 203 [205] 341 362 366
Current GDP
per capita (US$)
41,382 41,205 [40,634] 46,161 48,540 48,755
Real GDP growth
(% change)
2.6 2.8 [2.5] 3.8 2.9 -1.2
CPI (% change) 1.9 1.6 [1.4] 1.5 2.4 2.9
Unemployment (%) 4.7 4.3 [4.3] 3.1 2.8 2.9


* Source: International Monetary Fund (IMF) – World Economic Outlook Database, October 2019 Edition.
#Source: C&SD. ^Figures are subject to revisions when updated information is available.



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