1 See Bauer, Lee-Makiyama, The Economic Importance of Getting Data Protection Right, US Chamber of Commerce, 2014 2 See Cernat, Kutlina-Dimitrova, Thinking in a box, Mode 5 approach to services trade, March 2014; New Zealand Productivity Commission, Boosting productivity. The principle of mutual recognition within CER also builds on a decentralised approach on existing judicial institutions and procedures rather than supranational institution building (although a joint food safety agency has been set up). See more, build and grow, as you build, well guide and connect you to the services and support that will best prepare you to be more successful internationally. Similarly, New Zealand has uniquely approved unpasteurised cheeses from the. The EU is facing several controversies in the sanitary and phyto-sanitary (SPS) area. A similar competitive logic is now extended to all the TPP signatories, where the EU is using its standardised model texts.
Somewhat ironically, New Zealand has already undergone this evolution, and thanks to Europe: New Zealand lost its key export market for many (but not all) agricultural products when the United Kingdom joined the European Economic Community in 1973 and adopted the EU agricultural framework. Although New Zealand currently applies the same tariffs to US competitors, the effect of greater competition from Japan and the US would be immediate once TPP is concluded. New Zealand is not only a net exporter of agricultural products, but also a thought leader on agricultural liberalisation. Australia and New Zealand have also concluded the most ambitious FTA with the asean bloc the aanzfta. New Zealands FTA with Korea new zealand trade strategy contains work programmes for recognition of professional qualifications (e.g. Agriculture puts disproportionate constraints on the executives policy space. Services are an offensive interest for New Zealand, expanding beyond the sectors of where it is historically competitive such as tourism 3 and into business services and other sectors. Land available for agriculture in New Zealands is continuously shrinking due to expanding tourism and urban development, and there is currently less than 113,000 km2 of total agricultural land available. Wellington generally thinks through its positions that tend to be more than mere outputs of domestic political processes and there is no doubt that Wellington senior officials are experienced in using treaties to liberalise overseas markets. Onions and shallots or consumer preferences, such as wine, where the EU demonstrates extremely high export competitiveness and is by no means threatened by New Zealand imports.
Such triangular market access is also evident in manufacturing. 1 Outside of Europe, only New Zealand, Israel, Canada, Argentina and Uruguay are deemed as adequate jurisdictions to process EU citizens data. The results of EU-New Zealand negotiations could be operationalised beyond Oceania by the. It is ranked number one without any exceptions in all mentioned rankings amongst democracies, ahead of every EU Member State. The remaining products (where New Zealand pays full duties) are complementary to EU domestic production, either for seasonal reasons (e.g. See more, investment readiness. 3 Unlike Europes internal market, which is originally a construct of mutual recognition, the EU has not sought mutual recognition or functional equivalence in its FTAs. If you're early in your journey going international, we help by sharing practical tools and knowledge so you can more easily navigate your international journey. In contrast, the pre-existing state of EU-New Zealand regulatory co-operation on TBT, SPS and data privacy provides a starting point of negotiations which does not exist with other jurisdictions. Most notably, an agreement was a necessity in order to proceed with Japan, an economy four times larger than Korea, which at that stage had not entered into negotiations with the.
With a population of 51 million, Myanmar is the fifth largest asean economy, and is expected to grow in strength and influence. Europe needs a third generation FTA model to ensure that Europes key offensive issues (including tariffs, GIs and technical standards) are not constrained by the TPP framework. See more, contact nzte, after something else but not sure where to go? These products enters into the EU duty-free through tariff rate"s, negotiated following the accession of the UK into the EU, subsequently codified through the conclusion of the Uruguay Round in 1993. 2 Both New Zealand and the EU have extraordinary high content of services in its goods trade, with new zealand trade strategy half of their value-added coming from services. At first glance, the volumes may not seem major however, even a billion euro trade surplus is not negligible when the total current account surplus of EU28 with the rest of the world is just. However, trade with New Zealand is extremely concentrated to a few products and fairly limited.
It is the only common market that incorporates elements that go beyond the European Single Market, and is noted for its full liberalisation of services on a negative list basis. The unilateral reforms of CAP set a shelf life for EU agriculture, at least as bargaining chips in trade talks: on the one hand, agricultural market access to the Single Market is a key incentive for FTA negotiations. The country applies the worlds perhaps most candid tariff schedule applying 5 tariffs for goods where manufacturing exists or has existed in New Zealand and 10 for primarily clothing, footwear and motor vehicles. 4 Obviously, New Zealands bilateral FTAs do not reach the same standards of CER, but its agreements are far more comprehensive than EU FTAs, including in mode. Get export assistance, start strong. New Zealand is consistently ranked number one on economic and personal freedom indices, and despite accounting for only.2 of EU external trade, New Zealands economy is still on par with previous EU FTA partners like Peru and Vietnam.
Treatment of top 15 EU export categories under New Zealand tariff schedules. Subscribe to our newsletter, receive monthly insights, industry news, global know-how and events. The latter originated from the Pacific-4 (P4) agreement between New Zealand, Brunei, Chile and Singapore as the first attempt at a multi-party and trans-regional FTA, a conceptual idea first conceived by senior officials in New Zealand and brought into. The CER approach is far more suitable in the context of trade agreements. Zespri, New Zealands farmer cooperative, has invested in the EU to the extent that 11 of its overseas sales are produced in the EU, 2 effectively enabling year-round production and adding value to EU based production through bringing in new.
Another such area is customs valuation of services content in goods, or so-called mode 5 supply of services. This degree of policy cohesion was never in place with Canada, Japan or the US before the negotiations started. These services where New Zealand scores above the oecd average, due to requirements on commercial presence (particular in financial services) and mode 4 related issues, 5 are also sectors of key EU export interest. Measured in final consumption, New Zealand is larger than Chile, Malaysia and Singapore. Even more, GDP does not give the whole picture by counting what the country actually consumes, a truer measure of market size, New Zealand is at the top amongst the non-G20 TPP countries. Moreover, both EU and CER have pre-existing models for mutual recognition on products and services, which are provisionally tied by MRAs between them. Despite this imbalance, the EU enjoys a considerable surplus of 1bn (14) on its trade. Trade 2016 statistics, total trade in goods.3 million. Overall, the weighted average that the EU pays on its exports to New Zealand.75, which is relatively high, given that half of all products in New Zealands tariff schedule enter duty-free under WTO MFN rates paid by the. Myanmar's planned transport and energy links will place it at the crossroads of major regional trading routes, especially into China and India, the worlds two most populous nations.
Find out what sets New Zealand apart as a place to invest and do business. Aside from goods, services and investments are the defining growth areas for the. This is the highest quality and most comprehensive FTA by two oecd partners. Sequencing aside, the EU is bound to negotiate with both countries in the coming years due to the sheer market value of these two economies tied by the CER agreement. New Zealand lacks many of the features that often lead to defensive trade agendas something that dirigist economies, federal statehoods and transitioning economies sometimes become susceptive. None of the exports are amongst Europes most sensitive products,.g. New Zealand and Australia form the Closer Economic Relations (CER) partnership. See more, focus and evolve. The agreement on Sanitary Measures between New Zealand and the EU grants full equivalence on the basis of EU standards, eliminating virtually all common bilateral issues, with a scope going beyond other agreements. For Europe, the worlds largest economic bloc, only a few (if any) trade agreements could actually revive Europes growth on the basis of exports alone.
The agreement on offer was probably higher than the larger countries in the Far East, while creating a competitive pressure to bring the rest of the region to the negotiating table. See more, international Growth Fund, investing in your international growth is a challenge we know that many businesses face. 1 European Commission, Health Check of the Common Agricultural Policy, accessed at: m; European Commission, Agricultural Policy Perspectives, 12/2013 2 Zespri, new zealand trade strategy Annual report 2013/2014 3 Revealed comparative advantage (RCA) or Balassa index, indicates export competitiveness where.00 is average value. Subsequent diversification into other agricultural exports, like kiwifruit, was a product development driven by New Zealands market reforms. Aside from the wholesale abolishment of tariffs, TPP is likely to set new standards on services, e-commerce, intellectual property rights (IPRs) and public procurement. Then why is New Zealand only Europes 50th largest export market, recipient.2 of its exports now a likely candidate for a FTA?
However, given the fiscal trajectory of new zealand trade strategy the EU even in the short term, the cuts in the current CAP budget of 13 are unlikely to be the final baseline. Regulatory issues are particularly important for market integration, and modern FTAs put fair amount of emphasis on sanitary and phyto-sanitary (SPS) issues, technical barriers to trade (TBT) and sector annexes on NTMs. It was said at the outset that exports are not the principal rationale for the FTA, although it is worth noting that the EU has negotiated with far smaller markets than New Zealand. Moreover, New Zealand is also one of only three countries outside the European Economic Area (EEA) to be recognised by the European Commission to have an adequate (in reality meaning an equivalent) data privacy regulation. The most recent oecd Producer Support Estimates (PSEs) suggest that New Zealands agricultural support measures are the lowest of any developed economy.5 of farm receipts. Source: UN Comtrade, 2013; unctad trains, 2013 Even relatively low nuisance tariffs have disruptive effects on trade, especially for complex industrial goods like electronics, machinery or automobiles that may contain components from all parts of the world. Geographic indications) it seeks in its FTAs. Europes ongoing difficulties in concluding and ratifying its FTAs simultaneously with the TPP will lead to some of its existing trade and opportunities being diverted or worse: that Europes key offensive issues (including tariffs, GIs and technical standards) will be constrained by the TPP framework.
The second generation, starting with the EU-Korea FTA, put their emphasis on addressing non-tariff barriers based on Europes own templates primarily to eliminate export costs. Political and economic reform, and reintegration into the international new zealand trade strategy community, is expected to increase incomes and create a new Myanmar middle class. The EU has concluded negotiations with Canada and Singapore, and is seeking negotiations with a number of other TPP countries but does not currently have any agreed process with Australia, New Zealand or Brunei. First name, last name. On the other hand, if budgetary constraints in Europe force unilaterally liberalisation, counterparts can pocket the benefits for free. 1 Further market orientation of CAP through export orientation and productivity improvements for many more products is inevitable, but this entails also further investments in technology, services and market access. We'll help you develop a robust plan to raise capital and connect you to investors. Ministers from TPP countries confirm focus on trade liberalization in Pacific region, IBA applauds progress, international Beef Alliance Statement: On March 15, 2017, the Trade Ministers and representatives from the 11 remaining Trans-Pacific Partnership (TPP) countries met. In the 1980s, New Zealand initiated the inevitable move away from costly price distortion in the form of subsidies and tariff protection, towards smaller and more effective support of value-adding activities such as R D, quality improvement and sustainability work. New Zealand compared to TPP negotiation counterparts with less than US1 trillion GDP. Enabling New Policy Options: EU-CER and EU-aanzfta Trade policy is not about conquest of territory, but a game of chess where the merit of each move is valued on the new opportunities it creates, and each piece on the table has different roles and characteristics. 5 But perhaps more importantly, the existing duty-free treatments and complementarities makes a case for EU-New Zealand FTA negotiated swiftly and with relative ease. However, the EU has already liberalised New Zealands key export items such as sheep meat and wool.
Meanwhile the Association of South-East Asian Nations (asean) en route to establish a common market has successfully concluded FTAs with Asia-Pacific actors, but has not yet concluded with the. 1, bauer, Ferracane, Erixon, Lee-Makiyama, TPP: A Challenge to Europe, ecipe Policy Brief, No 9/2014 2, messerlin, Patrick, The TPP and the EU policy in East Asia, ecipe Policy Brief,.11/2012 3, european Commission, Joint declaration by President Van Rompuy. The EU-New Zealand Relationship, previous EU trade strategies omitted both New Zealand and Australia as they failed to meet the criteria of having sufficiently high market access barriers worthy of EUs attention. In any case, the Common Agriculture Policy (CAP) still accounts for 40 of the EU budget, and remains a major caveat to the EUs free trade narrative. Developing a discipline on data new zealand trade strategy against practices such as data localization and denial of service has been proven to be difficult in the current set of partners as most of the data flows are technically or legally inseparable.
GDP, shares of consumption and EU goods and services imports. Further ahead lies the next common market, namely asean. The idea of an FTA with New Zealand already enjoys the support of key EU Member States. The CER contains regulatory cooperation that is facilitated through a number of unilateral recognition of laws, far-reaching mutual recognition, information-sharing, and inter-agency meetings leading to mutual recognition of goods, services and occupations. These always need to be contextualised.