Securing Advantage from NZ’s FTAs

Martin Harvey, ManagerTrade NegotiationsMFAT

• New Zealand has a network of FTAs in the ASEAN Region: –  AANZFTA, Malaysia, Thailand, Singapore, P4.

• Advantages and opportunities for NZ firms:• – tariff reductions, services commitments, 

investment protections etc• FTA negotiations with ASEAN through – 

RCEP

Introduction

MFAT leads NZ’s trade agenda:– Negotiators– Market access– Implementation

FTA Implementation Unit– Business outreach and awareness– On-going negotiations– Management and administration of FTAs

MFAT’s Role

Growing agenda

Existing FTAs in force+ FTAs pending/under negotiation

• Competitive advantage for NZ exporters/investors

• Increase commercial profile for NZ companies in key markets

• Secure preferential access• Reduce tariff and non-tariff barriers• WTO plus rules and commitments, e.g. for 

investment

Why FTAs?

FTAs get results

The value of merchandise exports to FTA trading partners has grown 69% since 2007; while exports to other trading partners (non-FTA) grew 12% over the same period.

0

5000000000

10000000000

15000000000

20000000000

25000000000

30000000000

NZ FTAs entered into force

Non-FTA trading partners

• Comprehensive, early, tariff liberalisation• Rules of origin, customs procedures, trade remedies, SPS measures, 

TBTs• Services• Investment• Intellectual Property• Government Procurement• Competition Policy• Labour and environment• Dispute settlement• Institutional issues, • Means to review and resolve issuesCreating a liberal, transparent and predictable business environment

What’s in an FTA?

• Tariff preference gives New Zealand exporters a competitive advantage

• We need to improve preference utilisation rates

• Tariff phasing – think about the future

Tariffs

Indonesia• Onions, apples, kiwifruit, butter, cheese, all forestry, aluminium and

most machinery products - New Zealand can export to Indonesia duty-free.

• Tariffs paid by countries without an FTA range from 5% for onions to 20% for aluminium.

Philippines• Beef, most fish and fish products, most forestry, aluminium and most

machinery products - New Zealand can export to Philippines duty-free.

• Tariffs paid by countries without an FTA range from 10% for beef to 30% for machinery products.

Comparative advantage

“Under our FTA with ASEAN 99% of our exports will become tariff free”

AANZFTA

Another look at AANZFTA

Base Rate

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250%

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Tariff Reduction under AANZFTA: Indonesia, Viet Nam, Phil-ippines and Malaysia

IndonesiaViet NamPhilippinesMalaysia

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• Not just about tariffs• WTO services commitments, Movement of 

Business Persons• Investment protections• Competition etc• Programme of ongoing work and meetings 

including in Services and investment, Customs issues and Non Tariff Barriers

AANZFTA

How to take advantage

Tariff ClassificationProduct Specific Rules

of Origin

Direct Consignment and Transhipment

Documentation

Accessing Tariff Preferences