Free Trade prospects

The reason we will be hit hard by the global recession is our trading partners are going to buy less of our exports.

Hence it is very good news that despite the recession, NZ is making good steps towards reducing trade barriers. Trade Minister Tim Groser is earnign his pay!

The agreement to start FTA negotiations with India is exciting, but of more immediate impact is the signing of an FTA with Asean nations, initiated by the previous Government.

Trade Minister Tim Groser, who was in Thailand to sign the agreement negotiated under the previous government, said 99 per cent of New Zealand’s trade to those countries would be duty-free within 12 years. When fully implemented, it would mean annual duty savings of about $50 million.

The real gain isn’t just the savings, but also that it prevents those countries hiking up tariffs against us, as a protectionist measure. The current tariffs are quite low, but as I understand it could be lifted to up to 50% before this agreement takes force.