NZ seafood industry not making the most of free trade deals - Deputy Secretary of Trade

UK and EU FTAs, and the CPTPP, eliminated tariffs on some seafood - giving New Zealand an advantage over other countries. Photo / 123RF

By Sally Murphy of RNZ

The Deputy Secretary of Trade says the seafood industry is not making the most of free trade deals.

Vangelis Vitalis said free trade agreements (FTAs) with the United Kingdom and European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) eliminated tariffs on some seafood, giving New Zealand an advantage over other countries.

However, at the recent Seafood Conference, he told the industry the Ministry of Foreign Affairs and Trade (Mfat) has crunched some numbers - which show seafood exporters are not making the most of them.

“You’re exporting mussels to Mexico and paying a 20% tariff that means for every $100 of exports, you’re giving $20 to the Mexican customs administration, but the CPTPP which came into force five years ago eliminated that tariff. You shouldn’t be paying it.

“Large parts of the industry are still paying it. When you’re exporting and filling out the paperwork, there’s a box that asks, ‘Are you seeking the free trade agreement preference?’ You need to tick that box.”

Vitalis said Mfat estimates 40% of seafood exports to the UK are still paying tariffs which were eliminated a year ago.

When asked why exporters have to tick a box instead of getting the saving automatically, he said unfortunately, the other markets require the paperwork.

He pointed the seafood industry towards Mfat’s tariff finder, with which exporters can search for individual products and countries.

Seafood New Zealand chief executive Lisa Futschek said the talk was a wake-up call and exposed gaps in communication.

“Look, I think it was really important information for us to receive, and we weren’t aware that we’re not taking full advantage of our FTAs.

“Mfat does a really fantastic job in negotiating these agreements for us, and clearly we want our industry to be making full advantage of them.”

Futschek said it appeared the problem was at the importer’s end, where the paperwork was not filled in correctly.

“It’s highlighted a gap between what the officials are telling us [regarding] what is required and what our sector had understood was required.

“So now that we’ve identified that, we’re going to be in a really happy position of being able to maximise the returns from these amazing free trade agreements.”

- RNZ