MANILA: Exporters to New Zealand (NZ) are not maximizing that country’s Free Trade Agreement (FTA) with the ASEAN region, in force since 2010, a trade official said.
Agnes Perpetua R. Legaspi, Assistant Director of the Export Marketing Bureau under the Department of Trade and Industry, said more can be done for the goods and services being exported to New Zealand.
“I think what they also need to appreciate is we have an existing agreement,” she told BusinessWorld on the sidelines of a business forum on Oct. 25.
She was referring to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which would have the Philippines eliminate tariffs on 94.59% of tariff lines by 2020, while Australia and New Zealand would remove the tariffs on all tariff lines in the next four years.
“The New Zealand market is strict. It’s like other developed countries. So they need compliance. If you’re producing fresh marine products, they need that (as well as) our fresh fruits, processed nuts and fruits.”
“New Zealand is only 4.5 million people… their capacity to absorb (is) not that big. That’s why it needs to be niche. So organics… are what we need to pursue,” she said, noting that exports in marine, aquaculture, fresh and processed food would benefit.
Philippine Statistics Authority data show that the Philippines has consistently imported more from than it exported to New Zealand since 2011. Total trade fell 4.05% from 2011 to 2015, pulled down by a 4.72% decrease in Philippine imports while slightly propped up by a 2.91% increase in exports.
Fresh and dried banana, including plantain, account for the top Philippine export to New Zealand in 2015, valued at $8.78 million or 17.44% of total outbound shipments. Lead-acid, of a kind used for starting piston engines, follow with a 13.58% market share which is valued at $6.83 million.
On the other hand, milk and cream are the country’s top import from New Zealand, valued at $80.65 million or 18.67% of total imports. Fats and oils derived from milk account for the second largest import worth $74.63 million or 17.27%. New Zealand was 29th among the country’s trading partners in 2015.
The Trade department has been encouraging exporters to take advantage of the market potential in New Zealand, not just because of the benefits afforded by the FTA, but also because the its business environment had been regarded by many as one of the world’s best.
In the World Bank-International Finance Corp. Doing Business report, New Zealand ranked first among 190 economies surveyed, which means its regulatory environment is most conducive to the starting and operation of a local firm.
