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Home / Northern Advocate

Tariffs continue to hinder our export earnings

Northern Advocate
19 Dec, 2010 01:17 AM2 mins to read

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The horticulture industry's Trade Barriers Report shows tariffs imposed by other countries on our products cost growers on average $34,000 each, which is an increase of $6000 on the 2008 figures.
About 60 per cent of New Zealand's total horticultural production of fruit and vegetables is exported, valued at just under
$2.2 billion.
This year's study shows New Zealand horticultural produce exporters paid an estimated $235 million in tariffs to importing countries, an increase of 19 per cent on the 2008 figure of $197 million. At the same time export earnings increased by 8 per cent.
Prepared by Wellington-based company Market Access Solutionz, the report is used extensively by both industry and government agencies for monitoring and negotiating international trade access and helping exporters to develop new markets.
"Obviously as we sell more products in markets that have tariffs we pay more tariffs. We see some fantastic market opportunities in Asia but some of those markets have very high barriers to trade.
"That's why we need to continue our efforts on developing and signing free trade agreements," HortNZ chief executive Peter Silcock says.
The report suggests the increasing use by other countries of non-tariff trade barriers, known as 'SPS' - sanitary and phytosanitary barriers which either block entry to markets or add to the costs of supply based on biosecurity or product health concerns which are not always based on good scientific facts.
Other costs faced by our exporters include compliance with non-SPS technical barriers, like quotas, grade standards and labelling rules.
The European Union, ($603 million) Japan, ($445 million) Australia, ($337 million) and the US ($126 million) are New Zealand's top four horticultural export markets.
Taiwan ($105 million) has replaced Korea in fifth place, a reversal of their 2008 positions.
The report says this indicates the very high tariffs applied by Korea to a variety of products are putting growers and exporters off developing that market.
The value of exports to China has more than tripled in the past two years. Kiwifruit exports have been largely responsible for this increase - from $20 million in 2008 to $75 million in 2010.

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