(Yicai Global) June 30 -- The second round of talks to update the China-New Zealand Free Trade Agreement (FTA) will take place in early July.

Both China and New Zealand feel rhapsodic about each other due to a very equal status in bilateral trade, which is of reciprocal beneift, said Damon Paling, New Zealand's trade commissioner in Shanghai in an interview with Yical Global. A redacted summary of this interview appears below.

Yicai Global: What are the new trends in current bilateral trade between China and New Zealand compared to the past?

Paling: In my view, China-New Zealand bilateral trade has grown even more mature and accumulated more experience. The first aspect plain to see is that our bilateral trade relations are kept in great balance, and the very equal status of the two is a win-win situation.

For instance, we hope to attract Chinese investors to some key economic fields of New Zealand, including tourism infrastructure, e.g. construction of more hotels to accomodate more Chinese tourists. And I am glad to say that four to five extremely promising projects in this regard are already available now. In terms of education, an increasing number of Chinese students are choosing New Zealand to pursue their studies. In addition, New Zealand is known for high-quality, safe and healthy foods and drinks, which proves its strength as a food producer. So, a clear trend is more and more of the 1980-2000-generation traveling abroad will be exposed to these New Zealand foods.

Yicai Global: China and New Zealand witnessed a sharp increase in their bilateral trade, up from USD5.8 billion (NZD8 billion) as early as the first year of the FTA in 2008, to NZD23 billion (USD16.8 billion) last year. Convinced by the benefits of free trade based on the above fact, the two countries are now seeking to upgrade the FTA. So, can you expound on the latest progress of negotiations?

Paling: Signed in 2008, the China-New Zealand Free Trade Agreement has thus far passed the test of nearly a decade, during which the two parties have established more profound trade relations and fostered a deeper understanding of one other. On this basis, the current move to update the FTA will accordingly benefit both and enhance mutual exchanges on culture, ideas, and trade of goods and services. The more efforts we make to reduce trade barriers, the more prosperous trade between our two countries will be.

On the basis of the first round of negotiations launched in April in Beijing, this July will see the ensuing round. Of course, looking ahead, a host of negotiations will be carried out so that the two sides can ultimately reach consensus on the FTA upgrade. Previous experiences tell us this process is going to take at least several months, or even longer, one or two years maybe, be they FTA negotiations between China and other countries or FTA negotiations between New Zealand and other countries. I am convinced that both sides harbor aggressive ambitions and goals for updating our free trade, so the time needed for negotiations may be extended considering that realization of such goals takes a while in the negotiation process.

Yicai Global: As trade acts as a considerable part of New Zealand's economic growth, both China and New Zealand firmly stand by free trade. So, what's your idea of some views of trade protectionism now?

Paling: Many countries, including China and New Zealand, are surprised by trade protectionism. But most importantly, we need to differentiate between political slogans and reality. In small nations in which the entire country and  people rely on trade, like New Zealand, though we are focusing on our own business in a corner in the world far from those booming markets that enrich us, we still stand for free trade. Our trade policies over the three or even four decades have all related to free trade and duties. As New Zealand is an open and free country for commerce, we hope to trade with all partners, including the US, Europe and Asia. In short, New Zealand expects to showcase its quality commodities and services to the entire world.

Yicai Global: New Zealand was the first developed Western country to recognize the full market economy status of China, and the first to sign an FTA with us. Now that China has proposed the Belt and Road, which sectors relating to this initiative will New Zealand engage in? And have you spotted any opportunities and growth room here?

Paling: When we consider the primary meaning of the Belt and Road, we think of the Silk Road running towards Central Asia in ancient times, which linked China with Europe. Geographically, New Zealand is far from this trade path. New Zealand boasts great innovation, as well as many engineers and scientists. This gives us an opportunity to offer leading professional services in some projects like infrastructure construction in Central Asia and surrounding areas. New Zealand was also among the first group of countries to join the Asia Infrastructure Investment Bank. Through this relationship, we are finding opportunities to contribute via our professional technologies and consultation services, which is conducive to China-New Zealand trade and countries and peoples along the Belt and Road.

In innovation, New Zealand comes top worldwide, and so is our education. I will give an example. There is a high-tech startup titled Rocket Lab in New Zealand, which just sent a rocket to near-earth orbit. It is their business model to launch commercial satellites at a low price. These factors all indicate our superiority in the innovation sectors. Through our technologies and innovation, we can also participate in projects relating to the Belt and Road.

Likewise with our agricultural cooperation: New Zealand is also a world leader inagriculture. We have developed dairy industries backed by a significant supply chain and scientific research into food. This creates a decisive position for New Zealand in the dairy industry worldwide. Against the background of the Belt and Road, the population of China and other countries involved will have huge demands for nutrition and social welfare, especially those countries with massive numbers of children and youngsters. Expansive opportunities for agricultural cooperation thus beckon for our country.