Decisions on post 2005 tariffs (Includes Q&A)
30 September 2003 Media Statement
Decisions on post 2005 tariffs
After a six-year freeze, tariff rates will again begin reducing, but the government has held off moving to a zero tariff regime, Commerce Minister Lianne Dalziel announced today.
Today, Lianne Dalziel, Trade Negotiations Minister Jim Sutton and Economic Development Minister Jim Anderton announced the government’s tariff policy for post 2005.
Under the government’s decisions the highest tariff rates of between 17 to 19 percent, which apply largely to clothing, footwear and carpet, will begin reducing from 1 July 2006. These rates will reduce gradually to 10 percent by 1 July 2009.
Tariff rates on all other goods will reduce to 5 percent by July 2008, as set out in the table below. Alternative specific tariffs, which apply almost solely in the clothing area, will revert to the apparel ad valorem tariffs on 1 July 2005.
Current
Tariff July 2006 July 2007 July 2008 July 2009
17 –
19% 17% 15% 12.5% 10%
10 – 12.5% 10% 7.5% 5% 5%
5 –
7.5% 5 – 7.5% 5 – 7.5% 5% 5%
“These decisions were reached after consideration of a wide range of issues raised by many business groups and firms throughout New Zealand. The tariff programme we have adopted represents a careful weighing of all viewpoints.
“On the one hand the government has recognised the need for firms to continue to move up the value chain, and become more innovative and internationally competitive,” Lianne Dalziel said.
“Previous tariff reduction has generated significant productivity and welfare gains, especially for consumers.
“However, we have also recognised that previous tariff reductions have imposed significant adjustment pressures on industries and particularly in certain regions,” Lianne Dalziel said.
Jim Sutton said there is also international uncertainty surrounding tariff liberalisation, both in the WTO and APEC.
“The government is not prepared, therefore, to move to a zero tariff regime at this time. We will still retain some trade negotiating coin.
“By comparison, Australia’s current apparel tariff of 25 percent will fall to 17.5 percent on 1 January 2005. Australia has completed its review of textile, clothing and footwear tariffs beyond 2005, but has not yet announced its decisions,” Jim Sutton said.
Jim Anderton said the government’s decisions were aimed at minimising adjustment pressures to firms and regions. They involved very gradual reductions of tariffs overall, with no Normal tariff falling below 5 percent before 1 July 2009.
A further review in 2006 will determine the tariff rates after 1 July 2009.
“The government will also be working closely with the textile, clothing, footwear and carpet industries, in particular, to ensure that existing industry and regional development policies are effective in helping these industries work through the adjustment process,” Jim Anderton said.
Australian and New Zealand Ministers recently agreed to examine the CER Rules of Origin (ROO) requirements with a view to considering improvements which will benefit business on both sides of the Tasman. New Zealand industry will be consulted on this soon, and the review is due to be completed in 2004.
The Ministry of Economic Development’s report on the Tariff Review, and the list of the government’s key tariff decisions are being released with today’s announcement.
To view online: http://www.med.govt.nz or below
************
POST-2005
TARIFF POLICY
Questions and Answers
1. What is New
Zealand’s current tariff profile?
- New Zealand’s tariffs are low by world standards with a simple average tariff of 3.7 per cent.
- In 2002 duty paid on all imports totalled $288 million, which accounted for 0.7 per cent of government revenue.
- 44 per cent of import categories carry duty and 95 per cent of imports, by value, enter New Zealand free of duty.
- Most dutiable imports face low tariffs of 5 – 7 per cent. The highest tariffs apply to carpet, clothing (including headgear), footwear, ambulances and motor homes which attract rates of up to 19 per cent. Some textile products have rates of up to 12.5 per cent and automotive components have rates as high as 11.5 per cent (tyres).
- A chart comparing New Zealand’s tariffs with other countries is attached as Appendix A.
2. Econometric modelling undertaken for the tariff review shows that the benefits of future tariff reduction will not be as significant as under previous reduction programmes. Why has the government decided to continue on a unilateral reduction path?
- The review identified that New Zealand had a sharply different tariff profile from 10 years ago and that New Zealand tariffs are now low by international standards.
- Previous tariff reduction has generated significant productivity and welfare gains, particularly for consumers. A NZIER (1999) study of four items (cars, household appliances, shoes and clothes) estimated that the tariff reductions between 1987 and 1998 raised average household spending by $22 per week (1998 prices). This translates into prices on household appliances being 9% lower, shoes 5% lower, and clothes 15% lower.
- The
Infometrics report identified that previous tariff reduction
was responsible for a one off 0.3% increase in GDP. This is
equivalent to $414 million (in 1995/96 prices), or
approximately $300 per household. In addition the
longer-term dynamic gains from tariff reduction have
included:
- increased productivity;
- enhanced firm
level innovation;
- improved business practices; and
-
increased technology transfer uptake.
Many New Zealand companies are now innovative and internationally competitive, and resources are being used more productively.
- Economic analysis also showed that, while less than under previous tariff reductions, there are still significant gains to be had. The current tariff regime is estimated to be costing the economy 0.1 percent of GDP or $135 million and is imposing an estimated cost on the export sector of $325 million. The regime is also inhibiting firm-level innovation, particularly in those industries with high tariffs.
- It is important that further tariff reduction takes place in order to improve resource allocation across the economy and maintain the pressure on firms to innovate and continue to improve productivity.
- In an increasingly competitive international environment it is essential for NZ firms to continue to improve productivity and be innovative.
3. Why is the
government re-instigating a tariff reduction programme?
- The review identified that New Zealand had a sharply different tariff profile form 10 years ago and that New Zealand tariffs are now low by international standards.
- The review also acknowledged that the major efficiency gains had already been achieved, however, there were further gains to be made.
- The tariff review also highlighted that a significant adjustment cost had been imposed on the economy and on particular regions due to the relatively sharp reduction path and therefore, the government believes that in order to proceed it is important that adequate adjustment periods are given.
- The review also acknowledged that the long-term survival of business depended on the ability to operate in a tariff-free environment however, they were concerned about moving too fast. The government’s announcement represents a well-balanced decision.
4. How will the tariff changes affect international agreements?
- New Zealand is an active member in both APEC and the WTO. Consideration of the implications for tariff policy under New Zealand’s international obligations, including those under APEC, and the WTO was taken in the decision to reduce tariffs.
- New Zealand will still give priority to achieving reciprocal tariff liberalisation in the WTO, APEC, and through bilateral or regional CEPs.
5. What is Australia doing on tariffs?
- The tariff programme being
put in place will be similar to Australia’s. For example,
Australia’s apparel tariff is currently 25 per cent and will
reduce to 17.5 per cent on 1
January 2005. This will be
higher than New Zealand’s 19 per cent tariff at that time. A
review of Australia’s TCF tariffs beyond 2005 has been
completed. Decisions have not yet been announced, but it is
likely that clothing tariffs will be phased down to 10 per
cent in 2010.
- The Australian government has also signalled that its standard tariff of 5 per cent may not be removed unless other countries signal a move to zero tariffs.
- Australian tariff rates attached in Appendix B
6. What are the employment, export figures for
each of the TCFC sectors?
- The textiles industry employs approximately 7,700 people and in 2001 exports where $56 million (this does not include carpet yarn exports).
- The clothing industry employs approximately 8,400 people. Exports have increased from $29 million in 1989 to $222 million in 2001.
- The footwear industry employs approximately 730 people. Exports have increased from $10 million in 1989 to $60 million in 2001.
- The carpet industry employs approximately 900 people. Carpet yarn exports were $88 million and tufted carpet exports –accounting for the bulk of carpet exports – totalled $76 million in 2002.
7. What is the government doing in
the TCFC sector?
- The TCFC Sector Strategy was developed as a partnership by TCFC industries and the Government. In September 2002 the sector strategy, The Way Ahead, was completed. The Strategy’s vision was to “transform the TCFC industries so that they grow profitably and sustainably in the global market place and to ensure that growth opportunities are available for small, medium and large TCFC companies.”
- The Strategy proposed the formation of a new industry development organisation, Textiles NZ, to increase cooperation and collective action to develop markets; increase training and upskilling; and promote best practice. Textiles NZ is now working to build industry membership and foster information flows within the sector.
- The government has already contributed to the TCFC Sector Strategy, and will continue to work with the industry in terms of the current industry and regional development initiatives to assist in making the transition to a lower tariff environment.
8. Are there plans for reducing the employment effects?
- Government programmes aimed at facilitating retraining and job placement will address the dislocation suffered by low and unskilled workers. Officials form the Department of Labour, the Ministry of Social Development, the Ministry of Economic Development, the Tertiary Education Commission and the Treasury have been directed to consider possible additional employment assistance initiatives and will report back to the Minister shortly.
Alternative Specific Tariffs
9. What are alternative specific tariffs and why are they being removed on 1 July 2005?
- Tariffs are levied on imported goods either through an ad valorem duty or by a specific duty. A specific duty is where duty is levied on imports at a rate fixed in monetary terms per unit of quantity, regardless of price (e.g. $3.55 per item). They apply to largely low cost (mainly clothing) items.
- When
using alternative specific rates, duty is calculated either
by way of the alternative specific rate or the immediately
preceding ad valorem rate. The importer pays whichever rate
returns the highest level of duty. Of those imports that
may attract duty by way of an ad valorem or a specific rate,
only 22 per cent of imports, by value, paid the specific
rate in the June year 2002.
- Eliminating alternative specific tariffs will lead to consumer benefits and will result in a more transparent and predictable tariff regime.
- The existence of the alternative specific raises the equivalent ad valorem tariff rate by an average of 1.7 percentage points. This is 1.7 percentage points is on top of the ad valorem rate of duty.
- These alternative specific rates are to be removed on 1 July 2005 and only the appropriate ad valorem rate will apply.
Appendix A
How New Zealand tariffs compare with other countries
Country (a) Year All
Goods Agricultural Manufactured
Simple mean tariff* in
percentage
Australia 2000 5.8 1.7 6.2
European
Union 2000 2.4 4.6 1.8
United States of
America 2000 4.0 4.3 4.0
Japan 2000 4.5 8.3 3.2
Republic
of Korea 1999 8.6 12.3 7.8
People’s Republic of
China 2000 16.3 16.5 16.2
Taiwan,
China 2000 7.8 13.6 6.7
Hong Kong,
China 1998 0.0 0.0 0.0
Canada 2000 3.9 2.8 4.2
Malaysia 1997 9.3 7.0 10.3
Philippines 2000 7.6 11.9 6.9
Mexico 2000 16.2 18.3 16.1
Indonesia 2000 8.4 6.3 8.9
Thailand 2000 16.6 21.9 15.7
Singapore 1995 0.0 0.0 0.0
Saudi
Arabia 2000 12.3 11.9 12.4
New Zealand
* 2000 3.3 1.6 3.6
2002 World Development Indicators,
World Bank
These rates are effectively applied rates,
which reflect the rates actually applied to trade partners
in preferential trade agreements. The rates are therefore
not based on MFN rates; hence the New Zealand rate as 3.3
per cent rather than 3.7 per cent as used elsewhere in the
Tariff Review.
Appendix B
Australian comparisons
2000 2005*
Passenger motor vehicles
15% 10%
Apparel and certain finished
textiles 25% 17.5%
Footwear 15% 10%
Woven
fabrics 15% 10%
Sleeping bags, table
linen 10% 7.5%
Other textiles/clothing/footwear (e.g.
yarns and leather) 5% 5%
General
manufacturing 5% 5%
*The rates shown are the legislated
rates
- TERMS OF REFERENCE
Background
1 The
government has requested that officials review New Zealand’s
post-2005 tariff policy and develop tariff policy options
for that period.
2 New Zealand’s process of unilateral
tariff reduction has been suspended and, as a general rule,
tariffs are currently being held at their July 1999 levels.
This freeze will apply until July 2005.
Objectives
3
The Review will develop options and recommendations for
tariff policy beyond 1 July 2005 that take into account the
Government’s economic development strategies and the costs
and benefits to the New Zealand economy, consumers,
industries, their employees and the wider community, of the
various policy options.
4 The Review will begin in
February 2002.
5 The Review will have regard for the
Government’s desire to:
- promote the development of
prosperous and internationally competitive industries;
-
encourage regional development and reduce economic
disparity;
- abide by New Zealand’s international
commitments and actively participate in bilateral and
multilateral trade negotiations; and
- encourage
reciprocity by New Zealand’s trading partners in regard to
the lowering of tariffs.
Guiding Principles
6 The
Review will be guided by the following principles:
- the
outcome will not be prejudged;
- It will be widely
inclusive of all stakeholders and sectors of the economy,
and ensure that Mâori, Pacific and women business groups are
effectively consulted;
- it will be broad in scope and
give consideration to the social, employment (including
gender and ethnic issues) and regional impacts of tariff
policy on different groups; and
- it will be undertaken
in the general context of the Government’s broader economic,
industry and regional development policies.
Key Areas of Focus
7 The Review will:
a. outline the rationale for,
and assess the wider economic effects of, previous tariff
reduction/removal. This will include consideration of
industry efficiency, regional and industry development, the
labour market and social consequences of tariff reduction
and the effects on exporters and consumers;
b. assess the
benefits and costs of existing tariffs and their
effectiveness in meeting the Government’s broader economic
and industry development objectives compared to other
measures;
c. assess the wider effects of remaining
tariffs at the firm, sector and broader economy level, in
the context of the Government’s overall economic
policies;
d. consider the implications for tariff policy
of New Zealand’s international obligations, including those
under APEC, the WTO, and in the bilateral context; and
e.
assess the implications of pursuing a policy of reciprocity
in the context of tariff reduction.
Results of the Tariff
Review
8 The Review will have the final goals of:
a.
reporting on the matters identified in point 7 above;
b.
identifying, analysing and reporting on the benefits and
costs of tariff reduction across all sectors of the New
Zealand economy; and
c. providing the Government with
options and strategies relating to the further delay,
resumption or acceleration of unilateral tariff reductions
in the context of post-2005 tariff policy.
9 The Tariff
Review will be completed by 31 March 2003.
SUBMISSIONS TO
THE TARIFF REVIIEW
170 written and oral submissions to
the Review were received. Submitters included unions,
business groups, industry and agricultural organisations,
retailers, importers and many individual manufacturing
firms. The full list of submission is listed
below.
Written Submissions
ACI Glass Packaging New
Zealand
Ambler and Company
Limited
Astrograss
Bernard Gadd
BMV International
Limited
Bridgestone/Firestone New Zealand Ltd
Bruce
Dunlop (for flexible packaging)
Business New Zealand
(x2)
Cavalier Bremworth Ltd
Clothing, Laundry & Allied
Workers’ Union of Aotearoa (x3)
Confédération Européenne
des Producteurs de Spiritueux
Cooper Watkinson Textiles
Ltd
Deane Apparel
Distilled Spirits Association of New
Zealand (x2)
Distilled Spirits Council of the United
States
Earth Sea Sky Equipment Ltd (x2)
Employers’ &
Manufacturers’ Association Northern Inc. (x2)
Enterprise
Horowhenua Inc on behalf of the Kapati Horowhenua Apparel
and Textile Industry Cluster Group
Fashion Industry New
Zealand
Federated Farmers of New Zealand
Feltex
Carpets Limited
Fisher & Paykel Appliances
Limited
Fletcher Building
Limited
Fonterra
Furniture Association of New Zealand
Inc.
G.U.D. (N.Z.) Limited
Gin and Vodka Association
of Great Britain
Green Party of Aotearoa New
Zealand
Heinz Wattie's Australasia
Horowhenua District
Council
Importers’ Institute
Kauri Clothing
Ltd
Lane Walker Rudkin Industries
Lindsay Royal
Ltd
Marc Bendall Limited
Meat New Zealand
Ministry
of Agriculture and Forestry
National Distribution
Union
Neatfit International Limited
New Zealand
Business Roundtable
New Zealand Chambers of Commerce and
Industry
New Zealand Council of Trade Unions (x4)
New
Zealand Footwear Industry Association (x2)
New Zealand
Grain & Seed Trade Association Inc.
New Zealand Heavy
Engineering Research Association
New Zealand Household
Textiles Group
New Zealand Pork Industry Board
New
Zealand Retailers Association
New Zealand Steel
Ltd
New Zealand Trade Liberalisation Network
New
Zealand Wood Panel Manufacturers’
Association
Norsewear
Oxfam New Zealand
Pacific
Brands Holdings New Zealand Ltd
Pacific Business
Trust
Pacifica Seafoods (Christchurch) Ltd
Paul
Blomfield
Plastic and Leathergoods Co Ltd
Plastics New
Zealand Inc
Plastics New Zealand Inc for flexible
packaging industry
Rembrandt Suits Limited
Savant
Pacific Ltd
Shanton Apparel Ltd
Signature Rug & Cork
Company Ltd
South Pacific Tyres NZ Limited
Textiles
New Zealand (IDO)
V.S.S.P. PTY LTD. Hart Manufacturing
Ltd
Verissimo Engineering Ltd
Vision 2020 Inc. Hawke’s
Bay Regional Strategic Economic Development Agency
Vitec
Nutrition Limited
W. Peers & Co. Ltd
Wellington
Regional Economic Development Agency
Whitehead
Productions Ltd
Wools of New Zealand
Woolyarns
Holdings New Zealand Ltd
Yakka Apparel Solutions Ltd
(x2)
Yakka New Zealand Limited
Oral Submissions
AEP Industries (NZ) Ltd
Alto
Plastics
Ambler and Co Limited
Apparel and Textile
Federation
Auckland Regional Chamber of Commerce
Biofarm
Bridgestone Firestone New Zealand Ltd
Business
New Zealand C A Craigie & Co Ltd
Cambridge Clothing
Company Limited
Canterbury Employers' Chamber of
Commerce
Canterbury Manufacturers'
Association
Canvasland Holdings Ltd
Chequer Packaging
Limited
Clothing, Laundry & Allied Workers Union of
Aotearoa (CLAW)
Deane Apparel
Designer Textiles
International Ltd
Diemetrics Precision
Diecasting
Distilled Spirits Association of New
Zealand
Douglas Sandals Ltd
Economic Development
Association of New Zealand
Employers and Manufacturer’s
Association (Northern) Inc
Enterprise Horowhenua
Fabia
Ltd
Federated Farmers of New Zealand (Inc)
Feltex
Carpets Limited
Fisher & Paykel Appliances
Ltd
Fletcher Building Limited – Golden Bay Cement,
Fletcher Wood Panels, Pacific Steel and Pacific Wire,
Winstone Wallboards Ltd
Fonterra Co-operative
Group
G.U.D. (N.Z.) Limited
Heinz Wattie's
Ltd
Hella-New Zealand Limited
Horowhenua District
Council
Hubbards Foods Ltd
Huhtamaki Packaging
Worldwide
Interlock Group limited
Kathmandu
Kumfs
Shoes New Zealand Limited
Levana Textiles
Limited
Lindsay Royal Ltd
Lane Walker Rudkin
Industries Ltd
Lynn River Limited
McKinlay's Footwear
Ltd
Manawatu Knitting Mills Limited
Mâori Business
Network
Merz & Associates Limited
Moontide
International Limited
Mollers Textiles Ltd
Motor Sport
Apparel Ltd
National Distribution Union
New Zealand
Council of Trade Unions New Zealand
Footwear Industry
Association New Zealand
Pork Industry Board
New
Zealand Retailers Association
Norsewear
NZ Heavy
Engineering Research Association
NZ Merchants
Ltd
Orica New Zealand Limited
Otago Chamber of
Commerce and Industry Incorporated
Otago Southland
Employers Association Inc.
Pacific Business
Trust
Pacific Brands
Parisian Neckwear Co Ltd
Paul
Blomfield, Fashion Industry Consultant
Plastics New
Zealand
Pumpkin Patch
Saibar Clothing Company
Ltd
Sam Wrigley Ltd
Sealed Air (New Zealand)
Ltd
South Pacific Tyres NZ Ltd
Summit Wool Spinners
Ltd
Swazi Apparel Ltd
Talbot Plastics Ltd
V.S.S.P.
PTY LTD. Hart Manufacturing Ltd
Verissimo Engineering
Limited
Vertex Pacific Limited
Wellington Chamber of
Commerce
Whitehead Productions Ltd
Woolyarns New
Zealand
Wraggs Apparel Ltd
Yakka Apparel
Solutions
Yakka New Zealand Limited
GLOSSARY
Ad valorem tariff A tariff proportional to the value of an imported good i.e. a percentage of the value of the good.
Allocative efficiency Getting any given results with the smallest possible inputs, or getting the maximum possible output from given resources.
Alternative specific tariff A fixed monetary value tariff (i.e. specific tariff) applied per unit if the duty payable exceeds the amount of duty payable under the applicable ad valorem tariff. New Zealand maintains alternative specific tariffs on 60 per cent of clothing Tariff items.
Applied tariff rate The actual tariff levied on an imported good.
Bogor Declaration / Bogor Goals "free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing ones." This goal was adopted in 1994 by APEC members at the 6th APEC Ministerial Meeting in Bogor, Indonesia.
Bound tariff rate The tariff rate agreed to under the GATT or at the WTO for a specified Tariff item. Applied tariff rates can not be raised above their equivalent bound rates without offering compensation to affected trade partners. Bound tariff rates are enforceable under Article II of GATT.
Margin of preference The difference in tariff rate between the duty payable on an MFN basis and that payable under a preferential trading arrangement such as CER.
Most-favoured-nation (MFN) tariff The tariff rate that applies to imports on a non-discriminatory basis from countries that do not receive a tariff preference or tariff concession. Also referred to as normal tariff or general tariff.
Non-tariff trade barrier A barrier to trade other than a tariff that has the effect, intended or not, of restricting trade. For example, an import quota, a technical barrier to trade or an embargo. Also referred to as non-tariff measure.
Re-export A good exported in the same state as previously imported. It includes exports that underwent processing (after being imported) which did not change their origin.
Rules of origin The criteria used to determine where a product is made.
Specific tariff A fixed monetary amount levied per unit on an imported good.
Swiss formula A tariff reduction formula proposed by Switzerland and adopted at the GATT Tokyo Round (1974–79). It is a differential approach that reduces higher tariffs more than lower tariffs so as to reduce tariff peaks and thereby create a more uniform tariff regime.
Tariff A tax levied on imports at the border primarily to protect domestic industry.
Tariff concession Domestic context: Derived from
the Tariff Act 1988, a tariff concession is a formal
mechanism by which goods dutiable in the Tariff can be made
duty free.
International context: Negotiated reduction of
a tariff which is bound under the GATT or committed to under
a bilateral agreement.
Tariff item An 8-digit import category of Part I of the New Zealand Tariff.
Tariff peak Either a tariff above 15 per cent or a tariff that is more than three times the country’s average tariff rate.
Uruguay Round The last GATT round of multilateral trade negotiations initiated in Punta del Este, Uruguay, beginning in 1986 and ending in 1994.
************
Post 2005 tariff review
Key
decisions
Background
• In 2000, the government agreed
to halt the unilateral tariff reduction process by
"freezing" tariffs at their July 1999 levels until 1 July
2005 and to conduct a review to determine New Zealand’s
post-2005 tariff regime
• This decision constituted a
significant departure from the previous government’s policy
to unilaterally remove all tariffs by 2006 – most by July
2001.
Review’s Terms of Reference
• The review was to
have regard to the government's desire to:
– promote the
development of prosperous and internationally competitive
industries;
– encourage regional development and reduce
economic disparity;
– abide by New Zealand's
international commitments and actively participate in
bilateral and multilateral trade negotiations; and
–
encourage reciprocity by New Zealand's trading partners in
regard to the lowering of tariffs.
Key decisions
• All
alternative specific tariffs are eliminated on 1 July
2005
• Gradual reduction in ad valorem tariffs to 1 July
2009
• Further tariff review in 2006 to determine the
continuing tariff reduction path post 1 July 2009
Ad valorem tariff rates: July 2006 - July 2009
Current
Tariff July 2006 July 2007 July 2008 July 2009
17 –
19% 17% 15% 12.5% 10%
10 – 12.5% 10% 7.5% 5% 5%
5 –
7.5% 5 – 7.5% 5 – 7.5% 5% 5%
Tariff Review
• Sharply
different tariff profile from 10 years ago.
• New
Zealand tariffs are now low by international standards
(simple average of 3.7% across all goods).
• 95% of
imports by value enter New Zealand duty free
• Major
efficiency gains already achieved, however significant
adjustment costs have been imposed on the economy (and on
particular regions) due to the relatively sharp reduction
path
• Many submissions acknowledged that the long-term
survival of business depended on the ability to adjust and
operate in a tariff-free environment
• Most submissions
agreed that adequate adjustment periods were essential and
considerable caution was expressed about moving too fast and
more quickly than other countries
• Decision carefully
weighs three considerations, namely:
– That tariff policy
is important, however, further productivity gains will be
increasingly dependent on investment in innovation, R + D
and export development;
– Adjustment costs must be
weighed against longer-term benefits and therefore industry
and regional development initiatives (including skills
development and training) must be linked into affected
regions;
– that there is merit in delaying move to zero
tariffs until there is a clearer picture of what is
happening in APEC, WTO and Australia
Complementary
government initiatives
• Rules of Origin (ROO)
– CER
ROO to be examined to assess whether these can be improved
to benefit businesses in Australia and New Zealand.
•
Industry and regional development
– TCFC / government
strategic partnership
– Formation of Textiles NZ
–
Regional Partnerships Programme
• Employment
assistance
– Jobs losses possible with particular effect
on:
• Clothing and footwear industries
• The regions
of Kapiti and Horowhenua
• Female workers in these
industries
– Mitigated by:
• Work and Income working
with employers
• Community Employment Group establishing
resource centres
• Officials to report on more detailed
proposals on additional employment assistance, including
up-skilling