New partnership: New Zealand Prime Minister John Key and Chief Executive Donald Tsang meet in Singapore.

Negotiations on a Hong Kong & New Zealand Closer Economic Partnership Agreement have concluded with both sides ready to proceed to the legal verification and domestic approval processes, with the target of formally signing the agreement in the first half of next year.

Chief Executive Donald Tsang and New Zealand Prime Minister John Key today jointly announced the conclusion of the negotiations on the margins of the Asia Pacific Economic Co-operation Economic Leaders Meeting in Singapore.

The agreement will be Hong Kong's first free-trade agreement with a foreign economy. The partnership will lead to shared economic growth and carry trade and investment linkages to a new level.

As a services oriented economy, Hong Kong will benefit from liberalisation measures under the agreement. It will provide Hong Kong exporters with enhanced access to the New Zealand market, promote investment flow, and bring about multiple benefits to both economies.

Mr Tsang said the conclusion of the agreement signals the strong support of Hong Kong and New Zealand for an open market and trade liberalisation.

Noting the agreement is comprehensive and high quality, he said its gives New Zealand businessmen an important foothold into the huge Mainland market.

"For us it is also important because it is the first one we have concluded outside of China. We want it to be the template for other negotiations we are conducting - a high quality one hopefully giving special impetus to what is happening in the Doha round of negotiations in Geneva."

Bilateral trade between Hong Kong and New Zealand has been growing steadily. Total bilateral merchandise trade amounted to $7.5 billion last year. The average annual growth rate in bilateral merchandise trade was 7% from 2004 to 2008.

Total bilateral trade in services amounted to more than $3 billion in 2007. The average annual growth rate for total trade in services from 2003 to 2007 was 11%.