New Zealand Market Entry

New Zealand Market Entry

In 2019, Czech exports again increased slightly year-on-year. Similar to trade with Australia, mutual trade between the Czech Republic and New Zealand ended the last decade with a surplus, which reached more than CZK billion in 2019.

Balance of mutual trade exchange for the last 5 years

CR-NZ trade exchange according to MPO statistics 2013-2019 (in thousand CZK)
Export Importation Turnover Balance
CZK pore. Index CZK pore. Index CZK pore. Index CZK
2013 1,300,726 70. 118.9 616,715 77. 127.3 1,917,441 73. 121.5 684 011
2014 1,547,394 68. 119.0 666,227 76. 108.0 2,213,621 71. 115.4 881 167
2015 2,018,314 66. 130.4 832,256 78. 124.9 2,850,570 72. 128.8 1,186,058
2016 1,931,680 68. 95.7 727,260 79. 87.4 2,658,940 72. 93.3 1,204,420
2017 2,043,427 66. 105.8 725,493 81. 99.9 2,768,836 72. 104.2 1,317,850
2018 2,247,335 62. 109.9 753,892 81. 103.9 3,001,226 68. 108.3 1,493,443
2019 2,517,620 62. 112.1 810 525 81. 107.5 3,328,145 68. 110.9 1,707,095

Source of MPO

CR-NZ trade exchange according to MPO statistics 2013-2019 (in thousands of USD)
Export Importation Turnover Balance
USD pore. Index USD pore. Index USD pore. Index USD
2013 66,434 70. 118.9 31,527 77. 127.4 97,961 73. 121.5 34,907
2014 74,738 67. 112.4 31,771 79. 100.8 106,509 71. 108.7 42,967
2015 82,045 66. 110.0 33,832 79. 105.3 115,877 72. 108.6 48,213
2016 79,236 68. 96.6 29,623 79. 87.6 108,859 72. 93.9 49,613
2017 88 171 66. 105.8 31,348 81. 99.9 119,518 72. 104.2 56,823
2018 102,874 66. 116.6 34,471 81. 109.9 137,345 68. 114.9 68,395
2019 109,865 62. 106.8 35,367 81. 102.6 145,232 68. 105.8 74,498

Source of MPO

10 most important Czech export/import items

Over 50% of Czech exports to New Zealand are passenger cars. The bulk of New Zealand’s imports are wool.

Top commodities of Czech exports to New Zealand in thousand CZK for 2019
1 Passenger cars and other motor vehicles designed primarily for the carriage of persons (other than heading 8702), including passenger vans and racing cars 1,619,155
2 Ferroalloys 60,853
3 New rubber tires 54 197
4 Electric generating sets and rotary converters 48,044
5 Bulldozers, graders, excavators, etc. with drive 42,818
6 The caps of the capsule lid seals are also made of base metals 42,483
7 Tricycles, prams for dolls; dolls; ost toys; models; puzzles 38,455
8 Pipes pipes hoses accessories made of plastic 32 208
9 Other iron and steel products 31,529
10 Pumps, vacuums, air compressors, etc 24,847

Source: CZSO

Top commodities of Czech import from New Zealand in thousand. CZK for 2019
1 Wool not carded not combed 380,698
2 Meal and from meat offal of fish and inedible 103 165
3 Machines, equipment, mowing, threshing, lawnmowers, etc 64,360
4 Fresh chilled frozen mutton goat meat 45,462
5 Telephone apparatus, including telephones for cellular or other wireless networks; other apparatus for transmitting or receiving voice, images or other data, including apparatus for communication in wired or wireless networks 15,955
6 Wine from fresh grapes grape must other 15,740
7 Shafts and transmission gears of gear wheels etc 13,073
8 Onions, shallots, garlic, leeks and fresh, chilled 12,460
9 Frozen beef 10,477
10 Water water mineral soda sweetened not juice 9,712

Source: CZSO

Mutual exchange in the field of services

In 2019, the revenues of the Czech Republic reached CZK 18 million and expenses CZK 28 million. The balance of Czech-New Zealand trade in services is 9 million CZK (69.2 million CZK in 2018). Tourism services reported the most expenses, where the Czech Republic’s income was CZK 7 million and expenses were CZK 22 million. Check smber for agriculture and fishing facts of New Zealand.

Czech investments in the territory: Companies and joint-ventures in mutual trade and in other areas of economic cooperation

The commercial and economic section of GK Sydney is currently not aware of any cases of direct Czech investments in New Zealand.

Examples of Czech companies on the New Zealand market:

  • Shame on New Zealand
  • ERA as, Pardubice
  • Austin Detonator s.r.o., Vsetín
  • Juta as, Dvur Králové nad Labem
  • Mitas as, Prague
  • Biona Jersín
  • Htech cz sro
  • AVAST
  • BORCAD
  • Czech Zbrojovka
  • Skyleader
  • Aeropilot
  • BRM Aero
  • SMS CZ
  • Jablotron
  • Respilon
  • Atmosphere
  • Pilsner Urquell
  • ROKOSPOL AVIATION
  • EVEKTOR AEROTECHNIK
  • Atec
  • Zlín Aero
  • Cubic Balloons
  • Budweiser Budvar
  • Becherovka
  • Tatras
  • Kuberg
  • Continental
  • Lasvit
  • TON Design Furniture
  • AVG Technologies CZ s.r.o
  • Linet

The contractual basis between the two states

The Minister of Finance of the Czech Republic, Miroslav Kalousek, and the Ambassador of New Zealand, Alan Howard Cook, signed the Double Taxation Avoidance Agreement in Prague on 26 October 2007 (it entered into force in August 2008). This treaty has become an important part of the contractual basis between the two countries, increasing the legal certainty of investors and other tax subjects of both countries, especially regarding the existence and amount of their tax liability. New Zealand was the last OECD member state with which the Czech Republic concluded this agreement.

However, due to the limited scope of mutual trade and investment with the Czech Republic, the New Zealand side does not consider it necessary to conclude other trade-economic bilateral agreements, with the fact that mutual trade relations are governed by the membership of both countries in the WTO. This also applies to the Agreement on the Promotion and Mutual Protection of Investments.

Contracts:

  • Treaty between the Czechoslovak Republic and the United Kingdom of Great Britain and Ireland on legal assistance in civil and commercial matters, London, 11/11/1924, No. 46/1936 Coll.
  • Treaty between the Czechoslovak Republic and the United Kingdom of Great Britain and Ireland on the mutual extradition of criminals as amended by the Protocol of 4 June 1926, London, 11.11.1924, No. 211/1926 Coll., 22/1928 Coll., 73/1928 Coll., 56 /1929 Coll., 166/1932 Coll., 212/1934 Coll., 25/1935 Coll.
  • Supplementary Convention on Civil Judicial Procedure between the Czechoslovak Republic and the United Kingdom of Great Britain and Northern Ireland, Prague, 15 February 1935, No. 47/1936 Coll.
  • Agreement between the government of the Czechoslovak Republic and the government of New Zealand on the mutual release of sequestered monetary claims (exchange of notes 7/11/1946, 30/7 and 8/8/1947), Wellington, 8/8/1947, No. 71/1948 Coll.
  • Reciprocal declaration on partial exemption of income from taxation agreed by exchange of notes (Czechoslovak Socialist Republic – New Zealand), Wellington, 20/05/1969
  • Agreement on the working holiday program, Prague, 11/11/2004

New Zealand Market Entry