Free trade area between Russia and New Zealand: possible effects

Abstract

The possibility of creating a Free Trade Area between Russia and New Zealand is considered in the article. The dynamics and structure of Russia-New Zealand trade are analyzed. The effects of customs duties’ reduction on the Russian-New Zealand trade are estimated. It is specified that New Zealand is not a major trading partner of Russia. The author points out that the growth of Russia-New Zealand trade will be generated only by New Zealand’s imports, as a result of the possible Free Trade Area. However, high transport costs and availability of alternative markets are
the restrictions of imports of New Zealand products to the Russian market.