No unilateral tarriff cuts till 2015, says trade minister

New Zealand will not consider the unilateral reduction of any tariffs until 2015 at the earliest, Trade Minister Tim Groser and Commerce Minister Simon Power said today.

New Zealand has had a policy of reducing or reviewing its remaining tariffs since the 1980s, though the previous government decided to hold tariffs at 2009 levels until 2011.

The policy was intended to make New Zealand's economy more open and efficient, but it was criticised by some because few other countries unilaterally reduced tariffs.

Groser said the current 5 per cent and 10 per cent tariffs would be subject to any reductions that came out of the World Trade Organisation's Doha round of talks, but New Zealand's focus would be on increasing market access through free trade deals.

These deals would bring significant benefits to the New Zealand economy.

"New Zealand is increasingly opening itself up to international trade and has no plans to increase tariffs, which would increase prices for consumers," said Groser.

"We would similarly encourage other nations to resist protectionism as we emerge from the global economic crisis."

New Zealand has very low tariffs by international standards with most imported goods entering duty free.

Tariffs of 5 per cent apply to textiles and other goods produced in New Zealand and a tariff of 10 per cent applies to clothing, footwear and carpets.

Because of trade deals already negotiated tariffs on goods from Australia and Singapore have been eliminated and they are being phased in trade with Thailand, Chile, and Brunei, as well as with Asean countries.

Trade talks with Malaysia recently concluded and talks with the Gulf states and Hong Kong are in their final stages.

There are also hopes for talks with India.

Trade negotiators in the past have argued that unilaterally reducing tariffs further removed a key bargaining chip in trade talks.

Council of Trade Unions Secretary Peter Conway welcomed the tariff freeze saying it would help protect jobs.

It had never made sense to unilaterally cut tariffs and hope other countries followed suit, he said.

- NZPA