Tariffs huge cost for NZ exports

New Zealand's horticulture exporters are being subjected to more than $160 million of tariffs every year, according to a new report.

The report was released yesterday by the Horticulture Export Authority (HEA), Fruitgrowers Federation and the Vegetable and Potato Growers Federation.

All three organisations want the report used to raise the issue of tariffs during the next round of World Trade Organisation negotiations at Doha, Qatar.

Janet Skilton, HEA chief executive, says tariffs cost the horticulture industry between $160 million and $200 million each year.

"That is a huge cost for our exporters to bear on top of sales taxes, phytosanitary costs and other exporting charges."

She added the Government needed to be aware of the costs "so they can work to develop trade agreements with key trading partners that ease the burden on growers".

"Tariffs are one of the most significant barriers to our ability to trade with countries in the European Union and Asia," she said. "These punitive tariffs result in expensive produce at the other end.

"Consequently demand for New Zealand horticulture products is suppressed and there is higher level of wastage."

Skilton said the Thailand Closer Economic Partnership Agreement, signed in April, had resulted in "huge benefits" to domestic growers.

"It is imperative that we continue to work towards reducing these barriers and secure a better, more sustainable future for New Zealand horticulture exports."

Agriculture Minister Jim Sutton said the report made for a sobering read. "It's a timely reminder that the international trade system is not fair, in many important respects."

"The way things stand now, access for our products into other countries' markets is a privilege, not a right."

Sutton said World Trade Organisation negotiations were the Government's top trade priority but Plan B was to draw up bilateral trade agreements.

"[On Monday] I signed the successfully concluded trans-Pacific strategic closer economic partnership agreement with the ambassadors of Singapore and Chile. Brunei will be signing next month."

Horticulture tariff payments

* $25 million in tariffs to get $50 million of fruit and vegetables into South Korea.
* More than $86 million of tariffs on kiwifruit exports, equating to $32,000 per grower.
* $50 million in tariffs on fruit and vegetable exports to European Union.
* $30 million in tariffs on $350 million of exports to Japan.