Free Trade Agreement

New Zealand is one of the few countries to have a Free Trade Agreement with the Island. The agreement is officially called “The Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (ANZTEC)”. The FTA is a high quality, comprehensive trade agreement that liberalises and facilitate trade in goods, services and investment between the two markets. ANZTEC delivers preferential tariff access that gives New Zealand exporters a key competitive advantage in an important ‘affluent-Asia’ market of 23 million people. It also includes innovative provisions on film and television, indigenous cooperation and air links that will expand existing creative, cultural and people-to-people links.

Tourism

Taiwan remains a steady source of  tourism. There were 36,448 Taiwanese visitors to New Zealand over the year (2016), a 16.5% increase on the previous year. The largest age group of travelers was between 55-64 years old making up 8,464 visitors, the next largest group by age were the 25-34 year olds with 7,344 travelers.  The majority of visitors stayed between 8 and 14 days, with the average length of stay being 8.9 days. Each year 600 Taiwanese can come to New Zealand to live for a year under the Working Holiday Scheme.

Education

There are approximately 1,400 Taiwanese international students studying in New Zealand. As with most other East Asian markets Taiwanese perceive New Zealand as safe, and a lower cost alternative to the USA, UK, Canada or Australia.

Wine

In 2014, the total value of alcoholic beverages imported into Taiwan totalled US$942.7 million, with imported wine constituting only 15.6 per cent of this value at US$147 million. Whisky is the most-imported liquor, accounting for around US$405 million, with Taiwan becoming the world’s second-largest premium whisky importing country in 2013. Compared with whisky, wine has relatively smaller market but is expected to grow in the coming years. A number of opportunities exist for New Zealand wine growers:

  • An emerging group of wine consumers amongst young urban dwellers and women.
  • Strong demand for wine amongst a rapidly increasing number of tourists from mainland China (wine sold in Taiwan is not subject to the same high-level of import tax and duty as in China).
  • Drinking habits are changing: most new consumers have yet to develop a fixed preference for the source of wine.

General wine body and structure preferences in Taiwan are:

  • Red is more popular than white, 48 per cent of the import volume is cabernet sauvignon (and blends).
  • Full bodied and big, then medium, then light body.
  • Warm climate instead of a cooler climate, however appreciation for cool climate wines is increasing.
  • French oak is preferable to American oak.

 

Food and Beverage:

Taiwan has one of the highest per capita rates of expenditure on food in North East Asia, with relatively high disposable incomes and a strong preference for convenient, healthy, quality and premium food and beverage products. Although the local food manufacturing industry is well-established, Taiwan is still heavily reliant on imports, with a self-sufficiency ratio of around 33 per cent.

Food suppliers entering the Taiwanese market will benefit from the strong reputation currently associated with New Zealand food and beverage exporters:

  • Produce is free from disease, particularly Bovine spongiform encephalopathy (BSE) and foot-and-mouth disease.
  • Offers counter-seasonal supply – a competitive advantage for exporters.
  • An increasing number of high-end supermarkets are adding to the demand for high quality imported food and beverage products.

Opportunities for New Zealand suppliers of food and beverages to Taiwan include:

  • Meat – frozen beef (flank, shin, shank and offal), chilled beef (short loin, rib eye and tenderloin, chilled lamb and frozen lamb rack.
  • Dairy produce – milk powder, UHT cream, cheese, butter and value added dairy ingredients.
  • Fruit – nectarines (white flesh), tangerines, berries, pip-fruit and table grapes
  • Vegetables – carrots, potatoes and onions.
  • Organic food.
  • High quality packaged food.
  • Wine – ultra premium wines with international recognition.

Dairy

In 2013, Taiwan’s total dairy import volume was 152 605 tonnes, with a value of US$631 million. New Zealand was the largest supplier of dairy products to Taiwan in 2013, holding a 44 per cent market share.

The total milk produced in Taiwan in 2014 amounted to 374 000 tonnes, with a self-sufficiency ratio of 32.9 per cent. As a result the expansion of the coffee market, demand for fresh milk as well as liquid milk increased from 2013. The demand for New Zealand dairy products is always high in Taiwan and the following items offer good potential for Australian exporters:

  • cheese
  • milk powder
  • butter
  • extended shelf life milk
  • Ice-cream
  • organic dairy products.

New Zealand dairy products have a high and positive profile in Taiwan with local consumers confident in the quality of imports.

fashion

The market for youth fashion is strongly influenced by Japanese and Korean styles and trends. Due to the increasing demand for quality products, there are opportunities in:

  • contemporary menswear and ladies-wear
  • premium accessories
  • sportswear