WELLINGTON: Consumers are missing out as New Zealand exporters face “blatantly protectionist” shields from other countries, the New Zealand Institute of Economic Research (NZIER) says. A report released by the economic think tank on Monday estimates the cost of non-tariff measures on trade in the Asia-Pacific region (Apec) to New Zealand exporters at more than $8 billion a year.
Non-tariff measures (NTMs) were defined as policies separate to tariffs, which are a tax on imports, put in place by governments to limit imports or increase their price. The report found New Zealand exporters faced costs of $US.5.9b (NZ$8.4), while the overall cost of non-tariff measures in Asia-Pacific was found to be $US790b.
NZIER deputy chief executive John Ballingall said some of the non-tariff measures had legitimate reasons, such as protection from dangerous goods or maintaining animal and plant safety. “But many are blatantly protectionist in nature, designed to shield domestic industries from foreign competition.” Ballingall said New Zealand’s primary sector exporters faced the highest cost, with dairy alone estimated to be impacted by as much as $3.8b. Beef non-tariff measures cost about $1b, while horticulture faced costs of $440 million.
