Taipei, July 10 (CNA) Taiwan signed an economic cooperation agreement with New Zealand Wednesday, a pact it sees as a starting point for its participation in regional economic integration. The agreement, signed in Wellington by Taipei Economic and Cultural Office Representative Elliot Charng and New Zealand Commerce and Industry Office in Taipei Director Stephen Payton, is considered to be of great importance to trade-oriented Taiwan's long-term economic development. "It fully reflects the commitment of both sides to free and open trade and investment," Payton said at a live-broadcast teleconference. "It is a high-quality, comprehensive deal which will bring significant benefits to both sides," he added. Charng echoed Payton's view, saying that the deal "can open up export markets, improve consumer welfare and bring positive effects for both economies." It is the first free trade deal that Taiwan has ever signed with a country with which it does not maintain diplomatic relations. Taiwan signed an Economic Cooperation Framework Agreement (ECFA) with China in 2010, but that is a broader framework deal seen as a precursor to a comprehensive free trade pact in the future. The pact is named the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC). The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is the name under which the nation was admitted to the WTO in 2002. In addition to tariff elimination and greater services market access, the ANZTEC contains 25 chapters covering a wide range of topics, including labor, environment, open skies airlinks, film and television co-production and cooperation between the two sides' indigenous peoples. The conclusion of the trade pact is of great significance to Taiwan as it marks an important step in Taiwan's strategy for pursuing regional integration and forging deeper connections with the Asia-Pacific and global communities, the Ministry of Economic Affairs said. The Chung-Hua Institution for Economic Research (CIER) estimates that Taiwan is expected to see its GDP increase 0.008 percent as a result of initial tariff reductions under the ANZTEC, a figure that could rise to 0.394 percent after the agreement is fully implemented. After the pact is signed, Taiwan is expected to see its exports rise by US$144 million and imports increase by US$139 million, according to a CIER report. Taiwan's manufacturing sector is expected to benefit significantly from trade with New Zealand following the signing of the pact. The petrochemical industry and related chemical, plastic and rubber sectors, along with the electronics industry, are expected to be the biggest winners. The agreement is aimed at cutting tariffs by 1-5 percent on industrial and agricultural products the two countries import from each other, an official familiar with the matter said. In 2012, Taiwan's exports to New Zealand amounted to US$524 million and its imports from the country totaled US$690 million. Taiwan is New Zealand's 12th-largest export market and 15th-largest source of imports. New Zealand was Taiwan's eighth-largest source of agricultural imports in 2012, and Taiwan ran a US$600 million agricultural trade deficit with the country last year. The agreement is expected to lower the cost of agricultural products from New Zealand that are popular in Taiwan, according to the Council of Agriculture. New Zealand is Taiwan's 43rd-largest agricultural export market. Taiwan mainly exports cakes, vegetable oil and vegetables to the country. Taiwan has previously signed bilateral free trade agreements (FTAs) with five of its diplomatic allies in Central America, but they accounted for less than 1 percent of Taiwan's overall external trade in 2012. Negotiations on the agreement began in May 2012 and concluded in September. The pact still has to be reviewed by the Legislature. Taiwan is currently negotiating a similar economic cooperation accord with Singapore, but it remains unclear when it will be signed. (By Hsieh Chia-chen, Y.L. Kao and James Lee)