Securing Advantage from NZ’s FTAs Martin Harvey, Manager Trade Negotiations MFAT

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.

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 issues Creating 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

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 Classification Product Specific Rules of Origin Direct Consignment and Transhipment Documentation Accessing Tariff Preferences