New Zealand  FREEZE  Textile Tariff

New Zealand will not consider the unilateral reduction of any tariffs until 2015 at the earliest, Trade Minister Tim Groser and Commerce Minister Simon Power announced on 1 October 2009.

New Zealand has had a policy of reducing or reviewing its remaining tariffs since the 1980s, though the previous government decided to hold tariffs at 2009 levels until 2011.

The policy was intended to make New Zealand's economy more open and efficient, but it was criticised by some because few other countries unilaterally reduced tariffs.

Textile workers and union welcome the freeze on unilateral tariff reductions by postponing the tariff review for another four years, saying it would help protect jobs.

Given the Thailand, China, Malaysia and ASEAN free trade agreements allow NZ to continue with tariffs on TCF imports until 2016, it is sensible that any unilateral elimination of tariffs by NZ does not occur before this date. This will give companies more years to adjust to zero tariff.

New Zealand has very low tariffs with most imported goods entering duty free. Tariffs of 5 per cent apply to textiles and 10 per cent applies to clothing, footwear and carpets.

Back to Index of October 2009