Tariffs on New Zealand beef and sheepmeat exported to Chinese Taipei will be eliminated in four years, thanks to the Economic Co-operation Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu (Chinese Taipei) which came into effect from 1 December.
Primary Industries Minister Nathan Guy welcomed major cuts in tariffs for many exporters as tariffs were removed from milk powder, cheese, butter, apple, cherry and wine exports to Chinese Taipei.
“This will mean tariff savings of nearly $40m on current trade. It’s great news for our exporters,” says Guy.
“Tariffs on beef will be eliminated in two years and tariffs on kiwifruit in three. In four years, sheep, honey and most fish product tariffs will be eliminated and 99 percent of New Zealand trade to Chinese Taipei will be tariff-free.
“In total, tariffs will be eliminated on 100 percent of New Zealand’s current exports in a staged programme over 12 years.”
The news shows the importance of other free trade agreement negotiations, including the Trans-Pacific Partnership (TPP), which could have major benefits to New Zealand, says the Minister.
“Once the Chinese Taipei agreement is fully implemented tariff savings will reach $75 million, based on current trade. But given trade can be expected to increase, those savings are likely to be even higher.”
Chinese Taipei is New Zealand’s sixth largest market for agricultural products and eleventh largest overall export market.