Government to announce end to tariff freeze

A gradual reduction of tariff imports will be resumed when the freeze expires in 2005, the Government is due to announce later today.

The freeze was introduced in 1999, maintaining tariffs on items including clothing, textiles and footwear, to help protect jobs in those industries.

Officials told NZPA the previous reduction programme would start again but it would be "very gradual" and would not go down to zero.

Tariff reduction is an important element of international trade liberalisation, which New Zealand strongly supports because of the benefits it delivers to exports like agricultural products.

The previous National-led government wiped out most tariffs, sharply reducing the cost of a wide range of foreign-made consumer items. The price of new and imported used cars went down significantly.

Trade unions pressed for the freeze, fearing further reductions in vulnerable industries would cost jobs.

The Green Party strongly opposes tariff reductions.

- NZPA