On 29 June and 1 July 2015 the World Trade Organization (WTO) is conducting the fifth trade policy review of New Zealand. The review is based on a report submitted by the government of New Zealand and the report prepared by the WTO Secretariat.
The WTO Secretariat report notes that real GDP grew at an average annual rate of 2.1% between 2008/09 and 2013/14, driven by private consumption and high international prices for New Zealand’s commodity exports. The government is committed to fiscal consolidation with the operating balance deficit reduced to 1.3% of GDP in 2013/14 and a return to surplus expected in 2015/16. There are however important economic challenges including slowing demand from some trading partners, volatile commodity prices and a strong exchange rate.
In addition to its participation in the WTO New Zealand has engaged in regional trade agreements (RTAs)and four new agreements entered into force during the review period. These were RTAs with Chinese Taipei, Malaysia, Hong Kong, China and the ASEAN-Australia-New Zealand free trade area. Negotiations are continuing for further regional trade agreements and new RTAs have been concluded with the Gulf Cooperation Council and the Republic of Korea.
The average applied MFN tariff rate is 2.4% in 2015, with more than half the tariff lines duty free. There are higher tariffs for footwear and textile products. The New Zealand government took the decision in October 2013 to hold MFN tariffs at current levels until at least 30 June 2017. A tariff review will be conducted in 2016 with any resulting changes implemented in 2017.
New Zealand has implemented a trade facilitation project aiming at establishing a Joint Border Management System. As part of this project some measures have already been taken including a Trade Single Window and a revised import electronic declaration form. New Zealand has also amended its antidumping and countervailing law including a provision to allow importers to apply for a refund of anti-dumping duties paid in excess of the margin of dumping.