Key exporters are praising what they say is New Zealand's diplomatic finesse in securing a trade deal with Taiwan - without offending China.
China views Taiwan as a breakaway province and New Zealand has no government relations with Taiwan.
But using private sector negotiators, New Zealand has achieved immediate elimination of tariffs on over 70% of exports to Taiwan and total removal of tariffs over time.
The Government also refrained from using the term 'Taiwan' in favour of the Beijing-favoured 'Chinese Taipei'.
Exporters of deer velvet, seafood and kiwifruit have welcomed the deal, which they say will greatly assist their exports. They said a difficult political situation has been handled well.
Simon Limmer, a senior executive at kiwifruit marketer Zespri, said on Thursday the tariff reduction would shave a lot of money off its costs.
"The Taiwanese are fantastic, discerning consumers of fruit. Taiwan represents over $100 million in market sales. It's about $70 million of export earnings, so that equates today to about just under $15 million of tariff paid."
The Government said it is the first such triangular arrangement for any western nation dealing with both China and Taiwan.