The wider New Zealand horticulture export sector sees substantial opportunity following the announcement of an agreement on the Trans Pacific Partnership trade deal.
New Zealand Horticulture Export Authority CEO Simon Hegarty says: "We welcome this announcement, particularly with Japan’s inclusion in the TPP providing for elimination of an estimated NZ$28m tariffs, which we wouldn’t otherwise have achieved. While the TPP involves 12 countries resolving a range of trade issues, tariffs are a prominent trade barrier component. Tariffs paid by the NZ horticulture export sector across the remaining TPP markets are comparatively low (or already at zero) based on existing trade agreements (e.g. CER with Australia, the AANZFTA with ASEAN members), so as our 3rd largest market, Japan’s inclusion is significant for the future growth of the New Zealand horticulture export sector. We are very confident that our full product range is included in this TPP deal which will ultimately see all tariffs to zero."
New Zealand exports approximately 60% of its annual horticulture production, at a value of NZ$2.7 billion and the TPP countries are the destination for $1.19 billion (44%) of that total. Within the TPP group, Japan is the destination for NZ$446m Fob however, it accounts for 90% of the estimated $31m in tariffs NZ exporters paid in all TPP markets.