All of Hong Kong's exports to New Zealand will be tariff-free within six years, as the Hong Kong- New Zealand economic deal begins Saturday.

Under the Closer Economic Partnership Agreement (CEP) signed in March, New Zealand will phase out its import tariffs on all goods originating in Hong Kong over six years.

More than 90 percent of New Zealand's tariff lines will become duty free within two years.

Reciprocally, HK has committed to cut all tariffs on products from New Zealand upon the start of the CEP Agreement.

"The total bilateral merchandise trade between Hong Kong and New Zealand amounted to about HK$6.5 billion ($837 million) in the first nine months of 2010, with average annual growth rate of 2.7 percent from 2005 to 2009," Lam Pui Kei, an officer from the Public Relations and Information Unit of Hong Kong's Trade and Industry Department, told the Global Times Monday.

Based on the average merchandise trade figures in recent years, "Hong Kong's annual tariff saving is estimated to be about HK$7 million ($900,900)," according to the figures earlier released on the Hong Kong government's website.

Specifically, 64 percent of exports from Hong Kong will have their tariffs removed, immediately after the CEP Agreement begins. This will cover certain electrical machinery and equipment, sound recording and reproducing apparatus, and wooden items.

The agreement also covers the six industries in which Hong Kong specializes and is promoting further development, namely education services, medical services, testing and certification services, environmental services, innovation and technology, and cultural and creative industries.

New Zealand Trade Minister Tim Groser told AFP that the CEP represents part of a "wider regional drive toward growth in trade through liberalization," which has seen New Zealand conclude Free Trade Agreements (FTAs) with countries including China.

The FTA between New Zealand and China (NZ-China FTA) entered into force October 1, 2008, under which around 41.3 percent of China's exports are tax free.