New Zealand and Hong Kong have together signed a double tax agreement, according to the Government's statements.

The Finance Minister Bill English and Hong Kong's Financial Secretary John Tsang both signed the deal in Auckland.

According to Mr. English, it was a significant step towards strengthening the economic relationship between New Zealand and Hong Kong.

It is an important addition to the country's network of two tax agreements with chief business partners. It is also potentially valuable to businesses and investors from New Zealand as well as Hong Kong.

According to Revenue Minister Peter Dunne, Hong Kong is the ninth largest market of New Zealand for the purpose of exports and is also a vital source of investment.

Exports worth $850 million are made to Hong Kong every year.

This agreement will add to the attractiveness of New Zealand as an investment destination for the Hong Kong investors, making it simpler for the New Zealand businesses in turn to invest in Hong Kong.

The purpose of double tax agreements is to encourage growth in economic relations between countries.

This agreement will bring the withholding tax rates in compliance with the rates operating with USA and Australia now.