RESTRICTED  
  
WT/TPR/G/426  
 
6 April 2022 
(22-2753) Page: 1/24 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
NEW ZEALAND  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
New Zealand  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on New Zealand . WT/TPR/G/426  • New Zealand  
 
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  Contents  
1   OVERVIEW  ................................ ................................ ................................ .................  3 
2   KEY DEVELOPMENTS IN ECONOMIC POLICY  ................................ ...............................  4 
2.1   Current economic priorities  ................................ ................................ ........................  4 
3   KEY DEVELOPMENTS IN TRADE POLICY  ................................ ................................ ..... 7 
3.1   Introduction  ................................ ................................ ................................ .............  7 
3.2   Trade and the Māori Economy  ................................ ................................ ..................  10 
4   DOMESTIC TARIFF AND TRADE POLICY  ................................ ................................ .... 11 
4.1   Agriculture  ................................ ................................ ................................ ............  11 
4.2   Tariffs  ................................ ................................ ................................ ...................  12 
4.3   Services  ................................ ................................ ................................ ................  12 
4.4   Digital Trade  ................................ ................................ ................................ ..........  12 
4.5   Taxation  policy  ................................ ................................ ................................ ....... 13 
4.6   Investment policy  ................................ ................................ ................................ ... 13 
4.7   Banking and insurance policy  ................................ ................................ ...................  14 
4.8   Customs ................................ ................................ ................................ ................  14 
4.9   Science and Innovation  ................................ ................................ ...........................  15 
5   MULTILATERAL INITIATIVES  ................................ ................................ ...................  15 
5.1   World Trade Organization (WTO)  ................................ ................................ ..............  15 
5.2   Organization of Economic Cooperation and Development (OECD)  ................................ .. 16 
5.3   Trade and Development  ................................ ................................ ..........................  16 
5.4   Inclusive and Sustainable Trade  ................................ ................................ ................  16 
6   REGIONAL ACTIVITIES  ................................ ................................ .............................  19 
6.1   Asia Pacific Economic Cooperation Forum (APEC)  ................................ ........................  19 
6.2   East Asia Summit (EAS)  ................................ ................................ ..........................  20 
7   BILATERAL AND REGIONAL TRADE AGREEMENTS  ................................ ....................  20 
7.1   New Zealand – Australia Closer Economic Relationship ( CER) ................................ ........  21 
7.2   New Zealand -China Free Trade Agreement – Upgrade  ................................ ..................  21 
7.3   Trans -Pacific Partnership (TPP) Agreement  ................................ ................................ . 21 
7.4   Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP)  ............  21 
7.5   New Zealand – Singapore Cl oser Economic Partnership (CEP) Agreement – Upgrade  ........  22 
7.6   Pacific Agreement on Closer Economic Relations (PACER) Plus  ................................ ....... 22 
7.7   Regional Comprehensive Economic Partnership (RCEP)  ................................ ................  23 
7.8   Digital Economy Partnership Agreem ent (DEPA)  ................................ ..........................  23 
7.9   New Zealand -United  Kingdom Free Trade Agreement (NZ -UK FTA)  ................................  23 
7.10   Bilateral and Regional Trade Agreements under Negotiations  ................................ ...... 24 
8   OUTLOOK  ................................ ................................ ................................ .................  24 
 
 
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  1  OVERVIEW  
1.1.  Aotearoa New Zealand1 is pleased to submit its sixth Trade Policy Review (TPR) for the scrutiny 
of fellow World Trade Organi zation (WTO) Members.  
1.2.  Trade is an important connector globally for New Zealand , and has long been an important part 
of New Zealand' s economy. This has be en reinforced during the global COVID ‑19 pandemic. Before 
the pandemic began in early 2020, exports and imports accounted for around 55% of New Zealand' s 
Gross Domestic Product (GDP). This dropped to 44% by June 2021 as two of New Zealand' s biggest 
export earners, tourism and international education, were severely hit by pandemic -related border 
closures and the sharp drop in international travel. Trade is now leading New Zealand' s COVID ‑19 
economic recovery, and remains key to achieving the Government 's goa ls of i nclusive economic 
growth, increased productivity and the zero -carbon economy transition.   
1.3.  Trade must also deliver for all New Zealand ers. The Government 's Trade for All agenda is 
working to ensure trade policy supports sustainable and inclusive economic development and 
contributes to addressing global and regional issues of concern, so that all New Zealand ers benefit 
from trade. This includes ensuring that Māori benefit from trade, commensurate with the Crown 's 
Te Tiriti o Waitangi/Treaty of Waitangi obligations and its principles.2 One in every 
four New Zealand ers work in export -related employment. Trade is an important driver of 
productivity, employment an d incomes. Productivity per New Zealand  worker is 36% greater if they 
are in a firm that is exporting. Employment grows 7 % to 12% faster when New Zealand  firms start 
exporting. Average monthly earnings for employees of exporting firms were higher than in 
non-exporting firms across almost all industries, including manufacturing (41% higher), wholesale 
trade (31%), and mining (108%).3  
1.4.  To reali ze these bene fits, New Zealand  businesses ― whether medium or micro sized, whether 
female or Māori -led, ― need the opportunity to fairly and freely access, and compete on an equal 
basis in overseas markets, in order to participate in trade. A s a small economy distant f rom major 
markets, New Zealand  relies on the WTO -governed rules -based multilateral trading system.  The 
WTO rules helped protect and facilitate trade flows and kept supply chains open as the pandemic 
unfolded. It is the vehicle through which new trade rules  are developed and it secures and promotes 
the benefits of trade. It is the independent arbitrator of trade disputes. Progress at the WTO 
underpins not only global economic stability, but environmental sustainability and the COVID ‑19 
recovery. It is critic al to New Zealand' s economic health and well -being .  
1.5.  Maximi zing the contribution of trade to the New Zealand  economy is a priority. As the 
New Zealand  Government transitions the economy from volume to value through building on existing 
strengths and intern ational connections, it leverages market opportunities through new and 
upgraded Free Trade Agreements (FTAs). FTAs cover 69% of New Zealand' s goods exports and 63% 
of imports. New Zealand' s FTAs use WTO rules as foundations and build on these to address 
investment rules, digital trade, inclusive trade, the participation of women and Māori in trade, climate 
change, and sustainability. New Zealand' s open plurilateral instruments are designed as pathfinders 
to multilateral outcomes.  
 
1 Hereinafter referred to as New  Zealand, Aotearoa  is one of the names that the indigenous Māori use to 
refer to New  Zealand. The popular translation, "long white cloud ", refers to the cloud formations that helped 
guide the early navigators from Polynesia to this land.  
2 By way of summary of a complex mat ter, Māori are the indigenous people of Aotearoa -New Zealand. 
In 1840 the Treaty of Waitangi/Te Tiriti o Waitangi agreement was signed between the British Crown and a 
large number of Māori chiefs. It is a founding document of New  Zealand that establishes a nd guides the 
relationship between the Crown (embodied by Government) and Māori, conferring rights and obligations on 
each Treaty partner. It has three Articles: Article  One – the Government gained the right to govern 
(kawanatanga); Article  Two – the Crown  promised that Māori will have the right to make decisions over their 
lands, resources and valued possessions (taonga) which they wish to retain (tino rangatiratanga); and 
Article  Three  – the Crown promised that its obligations to New  Zealand citizens are owed equally to Māori. 
These obligations include ensuring the  Crown is a better Treaty partner, engaging effectively with Māori on a 
range of issues, and building true and practical partnerships with Māori which protect and bring benefits to 
Māori and all New Zealanders.  
3 Verevis, Cribbens, Mellor and Brunt (2022). 'All for Trade and Trade for All: Inclusive and Productive 
Characteristics of New  Zealand Goods Exporting Firms'. Available at www.mfat.govt.nz .  WT/TPR/G/426  • New Zealand  
 
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  1.6.  New Zealand' s successful ho sting of APEC 2021 once again united the region behind trade as 
the engine for inclusive and sustainable regional growth and a shared COVID ‑19 recovery, and in 
support of an effective, reinvigorated WTO. At a time of massive global disruption, APEC economi es 
agreed on the need to stabili ze the WTO and secure meaningful outcomes at the (now postponed) 
12th Ministerial Conference.  
2  KEY DEVELOPMENTS IN ECONOMIC POLICY  
2.1  Current economic priorities  
2.1.  New Zealand' s economy is recovering strongly and more quickly than expected from the 
COVID‑19 pandemic, the biggest economic contraction since the Great Depression. The 
Government 's economic priorities have been to:  
• Continue keeping New Zealand ers safe from COVID ‑19;  
• Accelerate the recovery and rebuild from the impacts of COVID ‑19; and  
• Lay the foundations for the future; including addressing key issues such as climate change 
and transitioning to a low carbon economy , housing affordability and child wellbeing.  
2.2.  The New Zealand  Government 's health -led approach t o COVID ‑19 coupled with economic and 
fiscal support have shielded the economy from the worst impacts: on almost every indicator the 
New Zealand  economy has performed better than forecast. Annual average real GDP growth of 4.9% 
is forecast to June  2023, eas ing to 2.2% in 2024.4 At December  2021, Government accounts showed 
a forecast deficit of NZD 20.8 billion for the 2021/22 fiscal year, with net debt forecast to peak at 
40% of GDP in 2023.5 
2.3.  The Government initially adopted an elimination approach to COVID‑19, closing New Zealand' s 
border in March 2020 and implementing public health measures including lockdowns. COVID ‑19 did 
not circulate in the population for most of 2020/21, and New Zealand  had the lowest number of 
cases, hospitali zations and deaths in the OECD.6 A strong rebound from New Zealand' s 
first COVID‑19 lockdown in 2020 provided fiscal room to support businesses and households during 
the late 2021 Delta outbreak. A vaccination programme has achieved 93% of the eligible population 
fully vacc inated by 19  January  2022.7 This has allowed the Government to shift its management of 
COVID‑19 to a protection framework system, relying on a highly vaccinated population and vaccine 
passes for greater freedoms and stability. New Zealand  intends to re -open its border in a phased 
plan from early  2022.  
2.4.  The Government 's NZD 50 billion COVID ‑19 Response and Recovery Fund (CRRF)8 has 
sustained the economy while its wage subsidy scheme supported nearly 1.8 million jobs in 2020/21. 
The employment rate is now at  a record high and the third highest in the OECD, with un employment 
at 3.4%.  A strong labour market and consumer confidence has driven increased tax revenue. 
Demand for New Zealand' s goods exports is expected to continue as the world economy recovers, 
and the terms of trade are supported by rising commodity prices. While New Zealan d has taken on 
debt through the COVID ‑19 pandemic, it has one of the lowest levels of government debt in the 
world, at 34% of GDP in December  2021.  
2.5.  The pandemic has created sector -specific challenges, however. The services sector, particularly 
tourism and  international education, is still depressed and businesses are closing. Services exports 
dropped from 31% of total export trade in 2019, to 18% by September  2021. While large exporters 
have been able to weather disruption, significant cumulative stresses across the economy from 
supply chain costs and unreliability, workforce availability, lockdown closures and debt are affecting 
the viability and resilience of smaller companies.  
 
4 All economic data is taken from the New  Zealand  Treasury website, www.treasury.govt.nz .  
5 All dollar amounts used in this report refer to the New  Zealand  dollar, unless otherwise stated.  
6 Our World in Data , Global Change Data Lab and University of Oxford.   
7 New Zealand Ministry of Health COVID ‑19 website . 
8 COVID‑19 funding allocation and expenditure ( treasury.govt.nz ).  WT/TPR/G/426  • New Zealand  
 
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  New Zealand' s Living Standards Framework  
2.6.  The New Zealand  Government prioriti zes wellbeing outcomes when considering policy 
interventions, including trade policy. This is supported by The Treasury 's Living Standards 
Framework (LSF), launched in 2018. The LSF goes beyond traditional measures of success, such as 
GDP, to broader indica tors of wellbeing and draws on international work including the OECD 's Better 
Life Index. The LSF is a flexible policy tool including four capitals and 12 wellbeing domains, 
illustrated in Figure 1 .  
2.7.  Implementation is supported by a LSF Dashboard, providin g indicators and analysis to inform 
long-term and strategic publications, including the Government 's Wellbeing Budgets of 2019, 2020 
and 2021. The LSF and Dashboard are updated as knowledge and data on wellbeing increases . 
Recently, t he He Ara Wairoa  framework has been developed by Treasury with Māori experts, to 
provide an Aotearoa -New Zealand  view of human wellbeing and approach to lifting living standards. 
He Ara Wairoa was  applied in Budget  2021. The LSF was refreshed in  2021, and is summari zed 
below: 
Figure 1 Living Standards Framework  
 
Source:  The Treasury , www.treasury.govt.nz . Accessed 25  November  2021.  
The transition to a low carbon economy and the Climate Change Commission  
2.8.  A key priority for the New Zealand  Government is responding to climate change and supporting 
sustainability and a just transition to a low carbon economy. In 2021 the Government strengthened 
its global emission reduction target to reduce New Zealand' s net greenhouse emissions by 50% 
by 2030 and committed to phasing out coal . The 2019 Climate Change Response (Zero Carbon) 
Amendment Act set targets to make New Zealand  carbon neutral .  
2.9.  Businesses and trade will play a fundamental role in the transition to a low carbon economy . 
The Government h as invested NZD 300 million to recapitali ze New Zealand  Green Investment 
Finance and b ecame the first country in the world to pass legislation requiring all listed companies 
and large financial institutions to report on their climate related risks.9 Other  measures have been 
introduced, including shifting public institutions and businesses to clean energy, requiring Crown 
Financial Institution investments be carbon neutral by 2050, introducing green bonds, and recycling 
revenues from the Emissions Trading S cheme to help finance the low carbon transition.  New Zealand  
 
9 Govt will continue to show climate leadership | Beehive.govt.nz . 
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  recently committed to provide NZD 1.3 billion in climate finance for developing countries over 2022 -
2025, a fourfold increase from its previous commitment.10 At least 50% of this funding will go to the 
Pacific.  
2.10.  The Climate Change Commission was formed in 2019, alongside work to set New Zealand' s 
climate targets, legislated under the 2019 Zero Carbon Amendment Act. The Commission is an 
autonomous Crown Entity which provides independent, evidence -based advice to the Government 
to help the transition to a low -emissions and climate -resilient economy. It has provided a climate -
lens on COVID ‑19 related policies and legislation.  
Infrastructure investment and the New Zealand  Infrastructure Commission  
2.11.  New Zealand  will invest a record NZD 57.3 billion in infrastructure over the next five  years. 
Infrastructure investment was already a core Government priority to improve productivity, support 
digitali zation and accelerate the low  carbon economy transition. It now also supports the  COVID‑19 
rebuild and recovery . 
2.12.  In January 2020, New Zealand  announced the New Zealand  Upgrade Programme (NZUP). 
NZUP is a NZD 12 billion investment in roads, rail, schools, and hospitals to moderni ze 
New Zealand' s infrastructure, prepare for climate change, and help grow the economy.11 As of 
June 2021, the total funding expected to be allocated to land transport through NZUP has increased 
to NZD 8.7 billion. This will fund projects that support growth, improve safety and provide travel 
choice. The programme also has a focus on carbon reduction and increasing access to housing.  
2.13.  As part of NZUP, NZD 300 million was allocated for Regional Investment Opportunities (RIO), 
administered by Kānoa – Regio nal Economic Development & Investment Unit. RIO funding has been 
invested in land, sea and air projects which will create jobs, enhance regional economic development 
opportunities, increase infrastructure resilience and help regional economies thrive.  
2.14.  In addition to the NZUP investment, two other funds helping to deliver the 
infrastructure  investment are the COVID ‑19 Response and Recovery Fund (CRRF) and the Provincial 
Growth Fund (PGF). The CRRF was stood up to support New Zealand' s longer term recovery f rom 
the impacts of COVID ‑19. As part of this, Cabinet agreed to a NZD 3 billion tagged contingency to 
provide investment in infrastructure. An Infrastructure Reference Group (IRG) was established to 
provide a list of infrastructure projects that were ready  (or near ready) for construction and could 
be deployed as part of an economic stimulus package. The CRRF has allocated NZD 2.5 billion for 
construction -ready infrastructure projects across community and social assets, climate and flood 
resilience, busines s, housing and transport. The PGF received NZD 3 billion to invest in 
regional  economic development. One  objective of the PGF was to improve critical infrastructure 
resilience, in road, rail, ports and wharves. Investment in infrastructure through the PGF equates 
to NZD 1.1 billion .  
2.15.  In addition, the Government established the New Zealand  Infrastructure Commission  in 2019 
to improve infrastructure planning, delivery and efficiencies, working with both the public and private 
sectors . 
Macroeconomic Policy Settings  
2.16.  New Zealand' s current macroeconomic framework is based on responsible and transparent 
fiscal management, a stable and resilient financial system, and an independent central bank 
(Reserve Bank of New Zealand , RBNZ) to deliver s table prices and maximum sustainable 
employment. This is supported through effective coordination between monetary and fiscal policy.12 
 
10 New Zealand increases climate aid contribution | Beehive.govt.nz . 
11 The New  Zealand Upgrade Programme | Beehive.govt.nz . 
12 The Reserve Bank of New  Zealand Act (1989) is be ing replaced by the Reserve Bank Act (2021), 
addressing the Bank's governance and non -prudential functions, including monetary policy and the RBNZ's role 
as lender of last resort for the financial system. A new Deposit Takers Act, expected to be passed in  2023, will 
provide prudential regulation by establishing a single standards -based regime for the regulation and 
supervision of Banks and Non -Bank Deposit Takers.  WT/TPR/G/426  • New Zealand  
 
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  Fiscal Policy  
2.17.  The Government 's fiscal strategy is to manage debt prudently and reduce the deficit caused 
by COVID ‑19. Even at its peak, New Zealand' s net debt forecast as a share of GDP remains lower 
than the starting point for many international peers. Despite the increase in debt stock, finance costs 
are forecast to be low, thus providing the fiscal space to respond to fu ture shocks.  
Monetary Policy  
2.18.  Amendments to the Reserve Bank of New Zealand  Act (1989) came into effect in 2019, adding 
an employment objective to that of price stability, and creating a formal monetary policy 
committee  (MPC). While the Act sets out the MPC 's high -level monetary policy objectives, the Remit 
provides the MPC with its specific operational objectives: to keep annual inflation between 1 % and 
3% over the medium term and to support maximum sustainable employment. The Remit  also 
provides required s econdary considerations (e.g.  seek to avoid unnecessary instability in output, 
interest rates and the exchange rate) and was amended in  2021 to require the MPC to assess how 
its decisions affect the Government 's objective of house price sustainability.  
2.19.  Monetary policy provided a significant amount of economic stimulus in response to the 
COVID‑19 pandemic by lowering interest rates through a range of tools. As it became clear in the 
second  half of  2021 that the New Zealand  economy was recovering strongly from the initial impacts 
of the pandemic, the use of additional monetary policy tools was wound back and the Official Cash 
Rate was raised from a low level.  
Macro -Prudential Policy  
2.20.  The housing market is an important conside ration for the RBNZ 's financial stability objective 
of promoting a sound and efficient financial system, as well as for monetary policy. In May  2020, 
the RBNZ removed loan -to-value (LVR) restrictions in response to the economic impact of COVID ‑19. 
As the p andemic progressed and the economy performed better than expected, a rapid increase in 
house prices led to concerns about their sustainability and an increase in higher -risk lending.  
2.21.  In February  2021, the Minister of Finance directed the RBNZ to have regar d to the government 
policy on sustainable house prices in relation to its financial policy. In March 2021, the RBNZ 
reimposed LVR requirements for owner -occupiers and investors. These were tightened further for 
investors from 1  May to a maximum of 5% of ne w lending at LVRs above 60% and for owner -
occupiers from 1  November to 10% of new lending at LVRs above 80%. The Minister of Finance has 
agreed to add debt serviceability restrictions to the set of macroprudential instruments available to 
the RBNZ. Operati onalizing these tools is currently being consulted on and will take place in 2022 .  
Industrial Transformation Plans (ITPs)  
2.22.  The Government introduced Industry Trans formation  Plans (ITPs) in 2019 to support its 
economic goal of building a productive, sustain able and inclusive economy. ITPs aim to transform 
key industries through partnerships between government, industry (businesses and workers) and 
Māori. Eight ITPs are in progress: agritech, advanced manufacturing, construction, 
digital  technologies, fisheri es, food and beverage, forestry and wood processing and tourism. ITPs 
have 20 -30 year visions to lift productivity through scaling up highly productive and internationally 
competitive clusters in areas where New Zealand  has a comparative advantage, and to transform 
environmental and labour market outcomes.  
3  KEY DEVELOPMENTS IN TRADE POLICY  
3.1  Introduction  
3.1.  Trade continues to play a key role in the New Zealand  economy and the Government 's plan to 
lift wellbeing and recover from COVID ‑19, through intensifying tra de growth and product and market 
diversification. Two -way trade (exports and imports) had reached 54.9% of GDP in 2019, before the 
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  3.2.  New Zealand 's major trading partners are China (taking 28% of New Zealand' s total exports 
in the year to September  2021, and 32% of its goods), Australia, the United  States , Japan, the 
Republic  of Korea , the United  Kingdom, and the European  Union . New Zealand  exports a broad 
range of goods with a focus on primary industry products. Travel was a significant contributor before 
COVID‑19. New Zealand  relies on imports of vehicles, petroleum, electronic goods and raw materials 
and capital equipment for industry.  
Trade for A ll 
3.3.  A key development since 2018 is the Trade for All agenda. Trade for All is an opportunity to 
update New Zealand' s trade policy to ensure that all New Zealand ers benefit from trade. Trade for 
All is now central to the way that New Zealand  interacts at th e international, regional and domestic 
level to advance inclusive and sustainable trade.  
3.4.  Two key components in the development of Trade for All include firstly, the November  2019 
report of the independent Trade for All Advisory Board, containing over 50 r ecommendations on the 
future of New Zealand' s trade policy following significant public consultation throughout 
New Zealand . The second is the Government 's response to the report. The recommendations and 
responses are aimed at making New Zealand' s trade po licy forward -looking, responsive, sustainable 
and inclusive. A significant body of work is under  way across government to implement the 
recommendations.13 
3.5.  Trade for All has moderni zed public participation in trade policy development and prioriti zed 
enhance d engagement with Māori. The Ministry of Foreign Affairs and Trade (MFAT) has expanded 
its engagement with Te Tiriti/Treaty partner representative groups or entities on trade policy in 
recent years, including on FTA negotiations. These entities comprise Mā ori representatives with 
extensive social, cultural, legal and trade experience. This engagement reflects a shared motivation 
to partner with Māori to ensure that the Government is meeting its obligations under Te Tiriti o 
Waitangi/Treaty of Waitangi,  and helps  to inform the Government 's trade policies and priorities.  
3.6.  In 2021, the Trade for All Ministerial Advisory Group was established by the Minister for Trade 
and Export Growth, to provide advice on the implementation of the Advisory Board 's 
recommendatio ns, and an ongoing, targeted mechanism for engagement with representatives from 
business, Māori and civil society on New Zealand' s trade policy.  
COVID‑19 and Trade  
3.7.  At the outset of the COVID ‑19 pandemic, New Zealand  acted early to resist moves towards 
protectionist responses, ensure that trade continued to flow unimpeded and keep critical 
infrastructure such as air and seaports open. New Zealand  co-led the Joint Ministerial Statement 
affirming commitment to ensuring supply chain connectivity amidst the COVID ‑19 situation14 signed 
with Singapore in March 2020, joined later by 10 other countries. New Zealand  created the Initiative 
on Trade in Essential Goods for Combating the COVID ‑19 Pandemic15 with Singapore in April  2020, 
removing trade blockages for over 120 essential products  including medicines, medical and surgical 
products . New  Zealand  also joined the Joint Ministerial Statement on action plans to facilitate the 
flow of goods and services as well as the essential movem ent of people in May  2020.16 
3.8.  In 2020, New Zealand  joined the APEC Ministers Responsible for Trade (MRT) Declaration on 
Facilitating the Movement of Essential Goods17, followed in 2021 under New Zealand' s APEC 
leadership  by the APEC MRT Joint Statement and the APEC MRT Statement on COVID ‑19 Vaccine 
 
13 Trade For All Agenda | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) . 
14 Joint Ministerial Statement affirming commitment to ensuring supply chain connectivity amidst the 
COVID‑19 situation – updated | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) . 
15 Covid -19 response: New  Zealand and Singapore launch initiative to ensure free flow of essential 
goods | Beehive.govt. nz. 
16 Joint Ministerial Statement on action plans to facilitate the flow of goods and services as well as the 
essential movement of people | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) . 
17 Declaration on Facilitating the Movement of Essential Goods by the APEC Ministers Responsible for 
Trade (MRT) . WT/TPR/G/426  • New Zealand  
 
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  Supply Chains.18 Ministers committed to expedite the flow and transit of all COVID ‑19 vaccines and 
related goods, and  to reduce the costs of these products including through voluntary reviews of 
border levies. As a result, in October 2021, New Zealand  enacted a tariff concession on COVID ‑19 
vaccine related products, and is in the process of permanently eliminating tariff s on these products.  
3.9.  At the WTO, New Zealand  is a strong supporter of an outcome on Trade and Health that 
meaningfully responds to the COVID ‑19 pandemic. New Zealand' s former Permanent 
Representative, Ambassador Dr David Walker, was selected in his person al capacity to be a facilitator 
responsible for leading WTO members in finding a multilateral and horizontal response to the 
COVID‑19 pandemic. New Zealand  remains an active supporter of the 'Walker text ' and a strong 
Trade and Health outcome at a reconven ed MC12. New Zealand  has also been a consistent supporter 
of discussions of a temporary waiver of certain intellectual property rights under the Trade -Related 
Aspects of Intellectual Property Rights (TRIPS) Agreement. New Zealand  supports equitable access 
to COVID vaccines for all and has been an active supporter of a temporary  TRIPS waiver in relation 
to vaccines.  
Trade Recovery Strategy  
3.10.  The Trade Recovery Strategy, launched in June  2020, is a comprehensive plan to help 
New Zealand  recover from the impacts of COVID ‑19 and to seize new opportunities for exports and 
investment. It has three pillars:  
• Retooling support for exporters through  practical tools and digital services to help 
businesses respond. For example, stepped up in -market support for businesses unable to 
travel to market, digital training for Small and Medium Enterprises (SMEs),  websites with 
advice on international freight d isruptions and tariffs or restrictions, o verseas market 
insight reports, and digital content for businesses to build e -commerce capability and 
adapt freight and logistics models;  
• Reinvigorating international trade architecture to ensure  markets remain ope n for 
trade. New Zealand  supported the WTO and its Multiparty Interim Arbitration 
Arrangement, continued to negotiate FTAs and to pursue concerted open plurilaterals, 
while using its APEC 2021 hosting to revitali ze regional trade and support recovery;  
• Refreshing key trade relationships  to diversify trade through FTA negotiations as 
outlined in Section  7, as well as providing greater 'in-market ' and 'to-market ' support for 
exporters; and both virtual and in -person political -level diplomacy.  
3.11.  Activities acros s all three pillars contribute to building New Zealand' s strategic economic 
resilience, so that the recovery also addresses vulnerabilities highlighted by the pandemic to ensure 
a stronger position for New Zealand  in case of future disruptive events. Trade  for All principles are 
also encompassed to promote a more inclusive and sustainable recovery.  
Concerted Open Plurilateralism  
3.12.  While multilateral outcomes remain New Zealand' s priority, since 2018, New Zealand  has 
deliberately adopted a "concerted open plur ilateralism " approach to develop pathways to WTO 
multilateralism and bolster and revitali ze the rules -based system. This involves identifying pathfinder 
opportunities to work with groups of like -minded economies to develop new ideas and norms in 
trade poli cy areas which respond to business needs and global priorities. High quality trade 
instruments are then developed that build on and support existing WTO rules, and are open to other 
WTO members to join if they can meet the high standards. These lay a pathw ay to multilateral 
outcomes over time . Examples of these, both completed and under negotiation, are found under 
Sections  5.1 and 7 below.  
 
18 APEC Ministers Responsible for Trade Meet ing Joint Statement 2021  - Annex 2: APEC MRT Statement 
on Services to Support the Movement of Essential Goods . WT/TPR/G/426  • New Zealand  
 
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  3.2  Trade and the Māori Economy  
3.13.  The Indigenous Māori economy has been valued at around NZD 70 billion and is an important 
contributor to New Zealand' s trade and economic well -being.19 Many iwi (tribes), hapū (sub tribes) 
and whānau (families) are directly involved in, or supported by export industries.20 Māori people and 
enterprises hold significant, and growing, assets in farming, forestry and fisheries industries, which 
have proportionately high numbers of Māori employees. Māori also represent high levels of 
leadership and ownership in goods exporting f irms, largely due to their significant presence in 
export -focused agriculture, forestry and fishing.21 Māori are major stakeholders in the tourism sector 
and are growing their presence in ICT and other high -tech sectors. Creating international business 
opportunities is a critical driver of Māori economic success and the Government 's trade policy .  
3.14.  Central to Trade for All is that Māori and the Crown, as Te Tiriti o Waitangi/ Treaty of Waitangi 
partners, work closely together to ensure that Te Ao Māori, Tikan ga Māori, and Mātauranga Māori22 
are reflected in trade policy development; that a strong Māori economy and its trade and investment 
potential are supported, and that trade delivers for Māori. In 2019, then Associate Minister for 
Trade  and Export Growth, N anaia Mahuta (now Foreign Minister), established a programme to 
ensure trade policy helps Māori succeed internationally and to support Māori trade opportunities: 
Aotearoa ki te Ao .23 This positions Māori to lead international efforts to expand Indigenous p eoples ' 
participation in global trade, including through inclusive trade policies, rules and co -operation with 
our trade partners.  
3.15.  New Zealand  has advanced Indigenous trade goals in plurilateral inclusive trade 
initiatives,  such as the Inclusive Trade Acti on Group (ITAG)24 and the Digital Economy Partnership 
Agreement ( DEPA ).25 The Australia and Aotearoa -New Zealand  Indigenous Collaboration 
Arrangement  (2020)26 promotes cooperation for Indigenous peoples including  in trade and the 
economy. Indigenous economic empowerment was also a focus of New Zealand' s APEC 2021 hosting 
and will continue to be prioritised.  
3.16.  During its APEC host year, New Zealand  proposed and l ed the negotiations of the Indigenous 
Peoples Economic and Trade Cooperation Arrangement (IPETCA)27, which seeks to deepen 
Indigenous cooperation and economic empowerment across the Asia -Pacific region and beyond, and 
which establishes a first -of-its-kind Partnership Council composed of economies and Indigenous 
representatives to jointly implement the IPETCA. IPETCA will help to unlock cooperation across a 
range of sectors and areas including responsible business conduct, traditional knowledge, 
opportunitie s for Micro, Small and Medium Sized Enterprises (MSMEs), digital trade and e -commerce. 
Also in  2021, New Zealand  launched Te Aratini – Festival of Indigenous and Tribal Ideas28, with an 
international flagship event at World Expo 2020 in Dubai. Te Aratini i s an Indigenous -led and 
Government supported movement to promote Indigenous and Tribal Peoples ' trade and economic 
inclusion globally.  
3.17.  Pursuing ambitious FTAs improves connections to global markets for products and services 
that are essential to Māori trad e success. New Zealand  has signed several globally significant trade 
agreements since 2015 which offer opportunities for Māori businesses to move up the value chain 
and reflects the special relationship between Māori and the Crown. Ongoing research on enha ncing 
Māori trade opportunities and Māori economy priorities informs FTA negotiations.  
 
19 Business and Economic Research Limited  (BERL) estimates the asset base of the Māori economy 
was NZD 68.7 billion  in 2018, growing by 61% between 2013 and 2018. While pre -COVID, this represents very 
high growth.   
20 Translates to tribes, subtribes and extended family.  
21 Verevis, Cribbens, Mellor and Brunt (2022). 'All for Trade and Trade for All: Inclusive and Productive 
Characteristics of New  Zealand Goods Exporting Firms'. Available at www.mfat.govt.nz .  
22 Translates respectively to a Māori world view; Māori practices; and a Māori knowledge system.  
23 Translates to 'New  Zealand to the World'.  
24 Inclusive Trade Action Group (ITAG) | New  Zealand Ministry of Foreign Affairs and Trade 
(mfat.govt.nz) . 
25 DEPA text and resources | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) . 
26 Australia and New  Zealand Indigenous Arrangement  | Beehive.govt.nz . 
27 The Indigenous Peoples Economic and Trade Cooperation Arrangement | New  Zealand Ministry of 
Foreign Affairs and Trade (mfat.govt.nz) . 
28 Te Aratini | Festival of Indigenous & Tribal Ideas . WT/TPR/G/426  • New Zealand  
 
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  3.18.  New Zealand  has sought to advance Māori and Indigenous interests in its FTAs. The 
Agreement between New Zealand  and the Separate Customs Territory of Taiwan, Penghu, Ki nmen, 
and Matsu on Economic Cooperation  (ANZTEC)29 includes an Indigenous cooperation chapter. The 
NZ-UK FTA (currently being negotiated) includes: early tariff elimination on a range of key products 
important to Māori businesses; cooperation provisions in  the Intellectual Property Chapter; 
Māori  perspectives and concepts in the Environment Chapter; a specific Māori trade and economic 
cooperation chapter; and the Te Tiriti o Waitangi/ Treaty of Waitangi exception clause (see next 
paragraph). Extensive engage ment with Māori contributed to these initiatives and outcomes.  
3.19.  Since 2001, New Zealand' s FTAs contain a Te Tiriti o Waitangi/ Treaty of Waitangi exception 
clause which, combined with other provisions, protects the government 's ability to adopt policies 
that fulfil its obligations to Māori, including under the Te Tiriti o Waitangi/ Treaty of Waitangi.  
4  DOMESTIC TARIFF AND TRADE POLICY  
4.1  Agriculture  
4.1.  There has been very little change to New Zealand' s tariffs on agricultural products since 2015. 
The average applied MFN tariff under the WTO definition of agriculture was 1.4% in  2020,  lower 
than New Zealand' s overall simple average applied MFN tariff . Total support provided to the 
agriculture sector is the lowest in  the OECD, with an average Producer Support Estimate of 0.7% 
during 2018 -20. 
4.2.  All support provided to agriculture in New Zealand  falls under the WTO  Agreement  on 
Agriculture  "green box " classification for measures exempt from the reduction commitment, as it  
funds agricultural research and innovation, biosecurity controls for pests and diseases, 
environmental programmes, relief payments, and infrastructural services. A large portion of 
regulatory and operational costs, including border control, is charged to beneficiaries. New Zealand  
has an Aggregate Measure of Support commitment level under its Agreement on Agriculture  bound 
commitments, but does not use nor plan to use this entitlement.  
4.3.  The vast majority of New Zealand' s agricultural production is exported and no export subsidies 
are provided for agricultural products. Trade in agricultural products is a critical contributor to 
New Zealand' s economy . New Zealand's interest in clear and effective rules extends to human, plant, 
and animal health and life prote ction measures. This is reflected in the maintenance of a robust 
quarantine system that is fully consistent with the provisions of the WTO sanitary and phytosanitary  
Agreement. Prior to the importation of a good, New Zealand  undertakes a science -based risk analysis 
commensurate with the risk posed, in accordance with WTO requirements and obligations. 
New Zealand  contributes to trade -related capacity building in developing countries to help them 
meet biosecurity requirements.  
4.4.  Reducing agricultural greenhouse gas emissions is critical for climate change mitigation. The 
Government has committed to reducing biogenic methane by 24 -47% below 2017 levels by  2050 
(and 10% by 2030), as set out in the Climate Change Response (Zero Carbo n) Amendment Act  2019. 
New Zealand  has also joined the COP26 Global Methane Pledge30 to showcase our commitment to 
increased ambition on methane emissions (including from agriculture). New Zealand  is the 
first country in the world to price agricultural emi ssions (from 2025 at the latest) and is working  with 
the primary sector and Māori to establish the best way of doing so through He Waka Eke Noa – 
Primary Sector Climate Action Partnership .  
4.5.  In July 2020, the Dairy Industry Restructuring Act 2001 (DIRA) was  amended to remove 
regulatory requirements no longer necessary, providing the Fonterra Co -operative with more 
flexibility to manage some aspects of its operations and increasing clarity on aspects of the 
regulatory regime for Fonterra and other dairy indus try stakeholders. The DIRA promotes the 
efficient operation of the New Zealand  dairy industry.  
 
29 Agreement between New  Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, 
and Matsu on Economic Cooperation | New  Zealand Ministry of Foreign Affairs and Trade 
(treaties.mfat.govt.nz) . 
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  4.2  Tariffs  
4.6.  New Zealand  remains committed to removing barriers to the free flow of global trade and 
continues to have one of the lowest average MFN applied tariff r ates at just 1.9% average in  2020. 
Around 90% of goods enter New Zealand  tariff free, including all goods from Least Developed 
Countries (LDCs).  
4.7.  One of the outcomes of the Plurilateral  Declaration on Trade in Essential Goods for Combating 
the COVID ‑19 Pandemic31 was the implementation of tariff concessions in April 2020 to provide duty 
free entry to the essential products. The decision was made to complete the amendment resulting 
from HS2022 prior to enacting the permanent elimination of these tariffs and work is underway to 
complete this in  2022.  
4.8.  A second round of concession arose from New Zealand' s commitment to reduce COVID ‑19 
vaccine -related product costs. The duty -free entry that these additional concessions provided 
commenced from Septembe r 2021 and are being included into the permanent elimination work 
for 2022.  
4.3  Services  
4.9.  Services form a vital and growing component of the New Zealand  economy. Travel, education, 
and transportation are New Zealand' s main services exports. All have been severe ly affected by the 
COVID‑19 pandemic and border closure , each falling by more than 20% in  2020. Services 
exports  reached NZD 27 billion in 2019, comprising 31% of New Zealand' s total export trade, 
dropping to NZD 13.6 billion (18%) in the year ending Septe mber 2021.  
4.10.  The fastest growing services export categories are those involved in the digital economy. 
Charges for the use of intellectual property have more than doubled since 2015, driven by licen ce 
to reproduce and/or distribute computer software, which h as grown more than threefold to reach 
almost NZD 1 billion in  2020. Other computer services under the telecommunications category have 
followed a similar trajectory.  
4.11.  Australia, the USA, and China are the top services export destinations, with India also 
featuring strongly for travel and education. On the imports side, Australia and the United  States  
again feature strongly, with travel and transportation the main categories. Singapore is also a top 
import partner, particularly for business services.  
4.4  Digital Trade  
4.12.  Increased digital economy activity has led to the development of new policies and architecture 
to support sustainable and ethical growth and innovation in digital technologies and services, ensure 
access and protections, and pursue free and fair digi tal trade . The Government is currently 
developing a Digital Strategy for Aotearoa32 which will set out goals, priorities and activities for the 
next 2 to 5  years, and longer -term results to  2031 and beyond. The Strategy 's discussion document, 
like current work programmes, is grouped around three themes:  
• Trust, including cyber security, privacy, protection, extremist content online;  
• Inclusion, for example equitable coverage, capability and access; and  
• Growth, including the Digital Tech industry transformation plan (see Section 2), export 
and innovation capability support including for SMEs, an ICT sector skills pipeline, and 
trade and international agreements .  
New Zealand  is advancing the Digital Economy Partnership Agr eement  (DEPA , Section  7 below), 
an APEC workstream on innovation and digiti zation, and has joined WTO initiatives such as the 
Joint Statement Initiative on E -Commerce negotiations (Section  5 below).  
 
31 Covid -19 response: New  Zealand and Singapore launch initiative to ensure free flow of essential 
goods | Beehive.govt.nz . 
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  4.13.  The growth in digital trade has also raised new challenge s and concerns, including for Māori, 
regarding the impact of international trade rules on traditional resources, practices and knowledge . 
Some of these issues were discussed in the 2021 New Zealand  Waitangi Tribunal report on the 
Comprehensive and Progress ive Trans -Pacific Partnership Agreement and its e -commerce chapter 
(Wai 2522) .33 The Government is still considering its response to the Waitangi Tribunal 's findings . 
4.5  Taxation policy  
4.14.  The primary purpose of taxation in New Zealand  is to raise revenue to finance government 
spending. New Zealand  has relatively broad bases for goods and services tax (GST), company tax, 
and income tax with the exception of a general capital gains tax. This allows substantial amounts of 
revenue to be co llected at rates which are low by OECD standards. This broad -base low -rate 
framework ensures that taxes bias decisions as little as possible, which in turn promotes economic 
efficiency and growth. New Zealand  has had this framework and reasonably stable ta x policies since 
the mid -1980s. Tax system consistency and predictability is important to the private sector.  
4.15.  Since the last report, the Government has been implementing recommendations from 
the G20/OECD 's Base Erosion and Profit Shifting (BEPS) project. New Zealand  was a signatory 
in 2017 to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS  
(the MLI)34, which strengthens double tax agreements to prevent certain BEPS activities. The MLI 
came into force for New Zealand  from 1 October  2018.35 New Zealand  enacted a domestic reform 
package in  2018 to address other BEPS concerns.36 New Zealand  has also adopted a number of tax 
responses to the economic situation caused by COVID ‑19. These included temporary measures to 
provide stimulus to the economy and permanent measures such as the reintroduction of building 
deprecation.  
4.16.  New Zealand's tax syst em is easy for taxpayers to comply with. New  Zealand ranked ninth 
among OECD countries in a 2020 World Bank and PricewaterhouseCoopers study on the ease of 
paying taxes. In a 2021 Deloitte survey, 95% of respondents stated that New  Zealand's tax system 
is consistent and 91% stated it was predictable.  
4.6  Investment policy  
4.17.  New Zealand  maintains an open framework for foreign direct investment (FDI), recogni zing 
its contribution to the economy. Total FDI stock in New Zealand  was NZD 130.9  billion in March  2021 
while New Zealand' s FDI stock abroad was NZD 29.5 billion. New Zealand' s largest FDI sources are 
Australia, Hong Kong, China,  the United  States  and Singapore. Regulations governing foreign 
investment are liberal by international standards, and targeted regula tions apply in only a few areas 
of critical interest. There are no sectors from which FDI is fully excluded.  Investment flows vary from 
year to year, reflecting changes in a small number of relatively large individual investments.  
4.18.  New Zealand' s Overseas I nvestment Act has had two major reforms since 2015. In 2017 
and 2018, new restrictions were placed on overseas persons buying existing residential homes, 
existing restri ctions on purchasing farmland were strengthened, and the regime for forestry 
investment  was streamlined and rationali zed by requiring consent for acquisitions of forestry 
registration rights and certain other profits -à-prendre.37 The second reform took place in two stages. 
In 2020, the Overseas Investment (Urgent Measures) Amendment Act  2020 mitigated the economic 
effects of COVID ‑19. The Overseas Investment Amendment Act  2021 encourages investment by 
simplifying the 2005  Act and reducing the screening of low -risk transactions. The reforms also 
ensured there are checks and balances to pro tect New Zealand' s economy, communities and national 
security.  
4.19.  As a result, the number of transactions requiring consent have been significantly reduced. 
The consent process has been streamlined, administrative burdens are alleviated and decision -
 
33 The Report on the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (2021) . 
34 Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS - OECD . 
35 Double Tax Agreements (Multilateral Conv ention to Implement Tax Treaty Related Measures to Prevent 
Base Erosion and Profit Shifting) Order  2018. 
36 Taxation (Neutralising Base Erosion and Profit Shifting) Act  2018. 
37 Profits -à-prendre are a right to take from another person's land something that is part of the soil or is 
on the soil and is the property of the landowner.  WT/TPR/G/426  • New Zealand  
 
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  making f or remaining transactions is timelier. The reforms also introduced changes to manage 
investments of higher risk and sensitivity to New Zealand , helping to maintain public support and 
trust in international trade and investment. The new National Security an d Public Order notification 
regime allows proactive assessment of investment in high -risk sectors and industries, as well as 
temporary emergency notification powers.  
4.20.  Since 2018, New Zealand  has opposed the inclusion of investor -state dispute settlement 
(ISDS) provisions in future FTAs. This includes the application of ISDS to New Zealand  in plurilateral 
agreements like the Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP) and the Regional Comprehensive Economic Partnership (RCEP ). There is no current 
application of ISDS in RCEP. In CPTPP, New Zealand  sought side -letters excluding compulsory ISDS 
between New Zealand  and its negotiating partners. ISDS provisions in trade agreements negotiated 
before 2018 can still apply. New Zealan d is developing a domestic 'ISDS protocol ' in consultation 
with Māori, to guide the Government 's domestic preparation in the event an ISDS case were ever 
brought against New Zealand  in which the Te Tiriti o Waitangi/ Treaty of Waitangi exception might 
be relied upon. The protocol will contain procedure and practices that the New Zealand  Government 
would put in place where the Te Tiriti o Waitangi/ Treaty of Waitangi exception in our FTAs might be 
part of New Zealand' s defence.  
4.7  Banking and insurance policy  
4.21.  The Reserve Bank 's new bank capital adequacy requirements took effect on 1 October  2021. 
Banks ' required capital will increase to 18% for the four Domestically Systemically Important Banks, 
and to  16% for the remaining banks. The changes are being phased in, ending in  2028.  
4.22.  The review of the Insurance (Prudential Supervision) Act  2010 commenced in 2020, with 
consultations continuing into 2022 . An exposure draft of the new legislation is expected in 2023, 
taking effect in late 2023 or early 2024 . A review of i nsurer solvency standards also began in  2020.  
An interim solvency standard will take effect on 1  January  2023, followed by the final solvency 
standard after the implementation of the new Insurance Prudential Supervision Act.  
4.23.  The Financial Market Infrastruc tures Act (FMI Act) was enacted in May  2021 and replaces a 
light-handed opt -in regime in Parts  5B and 5C of the Reserve Bank of New Zealand  Act 1989. The 
FMI Act includes a full suite of regulatory powers consistent with the IMF 's 2016 Fina ncial Sector 
Assessment Program recommendations, bringing New Zealand  in line with international best 
practice. Work is underway to operationali ze the Act, with implementation targeted for early 2023.  
4.8  Customs  
4.24.  The New Zealand  Customs Service (NZCS ) operates a Trade Single Window as part of the 
Joint Border Management System. It includes an electronic channel for the cargo and excise 
industries to submit information and receive responses from border agencies. NZCS 's primary 
legislation was amended i n the Customs and Excise Act  2018. Certain importers can now declare 
provisional values for goods at the time of importation and NZCS can rule on appropriate valuation 
methods. Legislation introduced an internal review process so customers can easily appea l decisions. 
Customers can also apply to store business records outside New Zealand , including in the cloud.  
4.25.  As 2021 Chair of the APEC Sub -Committee on Customs Procedures, the NZCS led the 
development of a toolkit of trade facilitation measures based on CO VID‑19 lessons learned, for use 
in future trade disruptions, and the development of non -exhaustive best practice guidelines 
promoting paperless trade. These will help APEC economies update customs procedures and 
legislative frameworks so that all traders, especially MSMEs, can clear goods electronically. NZCS 
also developed the Best Practice Guidelines for APEC Customs Administrations to Facilitate the 
Distribution of COVID ‑19 Vaccines and Related Goods .38 
 
38 Customs drives work on COVID ‑19 vaccine delivery for APEC economies |New Zealand Customs 
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  4.9  Science and Innovation  
4.26.  The Government launched the Te Ara Paerangi -Future Pathways  programme in October  2021 
to begin an open conversation on positioning New Zealand' s public research system for the future. 
The Programme seeks to build a modern research system that is adaptable, resilient to changes, 
and c onnected – internally to industry and users of research, and internationally. It is seeking input, 
including on how to determine and operationali ze national research priorities, support Māori 
aspirations, and reform funding and institutional structures to better enable connectivity within the 
research system. The Government is expected to make high level decisions on the programme 's 
direction in mid -2022. Further consultation will follow.  
5  MULTILATERAL INITIATIVES  
5.1  World Trade Organization (WTO ) 
5.1.  As the international community recovers from the COVID ‑19 pandemic, New Zealand  supports 
a strong and resilient WTO, at the centre of the multilateral rules -based system, more than ever. 
The WTO remains New Zealand' s top trade priority, unchanged since New Zealand  became a 
founding member in 1995. Open markets and respect for trade rules are crucial for trade to flow 
smoothly, predictably and freely .  
5.2.  The postponement of MC12 in November 2021 was disappointing, but given the global health 
situation, it was the right decision. New Zealand' s immediate priorities heading towards a 
rescheduled MC12 include a meaningful trade response to the global pandemic , demonstrating the 
WTO's global relevance and ability to contribute to the recovery. New Zealand  seeks conclusion of 
disciplines on environmentally harmful fisheries subsidies as soon as possible, and a new negotiating 
framework to reduce trade - and produc tion-distorting subsidies in the agriculture sector. 
New Zealand  also hopes MC12 will provide political support to the ongoing need for WTO reform.  
5.3.  The WTO 's ability to act as an independent arbitrator in trade disputes and enforce rules is 
highly valued by New Zealand . New Zealand  has continued to pursue its systemic interests in 
WTO disciplines in recent times, notably as Principal Complainant in the  Indonesia -Import Licensing 
Regimes  dispute39 (the DSB Panel ruled in New Zealand' s favour in 2016 followe d by the 
Appellate  Body in 2017) and as Third Party in 21 other WTO Disputes since 2015 .  
5.4.  New Zealand  has participated in the development of the Multi -Party Interim Arrangement for 
dispute settlement (MPIA) and the Roadmap for reform of the Appellate  Body to repair and revitali ze 
the WTO 's dispute settlement function. New Zealand  is committed to working together with 
WTO Members to find a permanent solution. New Zealand er Dr.  Penelope Ridings has been 
appointed as an arbitrator to the MPIA. New Zealand  has also made a large contribution through the 
many New Zealand  panellists appointed to WTO dispute settlements. Ensuring the WTO can continue 
to settle disputes and enforce rul es is critical to the global trading system and global economic 
stability.  
5.5.  New Zealand  has contributed ambassador -level Chairs to the WTO 's Committee on Agriculture 
in Special Session and its Sub -Committee on Cotton; the Dispute Settlement Body; and the 
General  Council. In addition, David Walker, New Zealand' s former WTO Ambassador, acted in a 
personal capacity as the independent Facilitator of the WTO Appellate  Body process and the 
WTO multilateral response to the pandemic .   
5.6.  The WTO 's Trade Facilitation Agreement entered into force for New Zealand  in 2017. 
New Zealand  has also implemented the December  2015 Nairobi Decision on Export Competition and 
Co-sponsored the 2021  Joint Statement on Agricultural Export Prohibitions or Restrictions relating 
to the Wo rld Food Programme. New Zealand  was one of 67 WTO Members that announced conclusion 
of Services Domestic Regulation negotiations on 2  December  2021.  
5.7.  New Zealand  supports progress towards new multilateral outcomes at the WTO through 
plurilateral Joint State ment Initiatives  (JSIs) . New Zealand  is an active participant in the Joint 
Statement Initiatives on Electronic Commerce , Investment Facilitation for Development, and the 
 
39 Indonesia – Importation of Horticultural Products , Animals and Animal Products, DS477.  WT/TPR/G/426  • New Zealand  
 
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  Informal Work Programme for MSMEs, and trade and gender. New Zealand  sees a valuable r ole for 
the WTO at the intersection of trade and climate change and is leading the Fossil Fuel Subsidy Reform 
initiative to establish a pathway for discussions and development of options to address fossil fuel 
subsidies at the WTO.  
5.2  Organi zation of Economi c Cooperation and Development (OECD)  
5.8.  New Zealand  actively supports trade work at the OECD, including through participating in 
relevant Committees and Working Parties, such as those on trade, fisheries and agriculture and its 
long-standing chairing of the J oint Working Party on Trade and Environment. The OECD 's 
high-quality analytical and policy -focused work on trade has been valuable in complementing the 
work of the WTO and in promoting the benefits of a strong multilateral trading system. New Zealand  
particularly supports the OECD 's work to promote the benefits of trade liberali zation, highlight the 
costs of protectionism, and promote policy coherence for development.  
5.3  Trade and Development  
5.9.  New Zealand's trade policy supports leveraging trade to advance impl ementation of the 
Sustainable Development Goals. New Zealand  believes WTO rules contribute to trade -led growth 
and development and solutions for international challenges, such as food security and climate 
change. New Zealand  also supports the need for targ eted and proportional flexibilities and effective 
technical assistance to help developing Members, in particular LDCs, to implement these rules and  
participate in global trade.  
5.10.  Overall, New Zealand  has donated approximately NZD 2.6 million to various WTO trust funds 
over the past 20 years including financial contributions to promote LDC participation at MC11 and 
MC12 and NZD 38,000 for LDC participation in fisheries subsidies negotiations. New Zealand  was 
one of the first countries t o offer unilateral duty -free quota -free access for all LDCs in 2001, and 
continues to do so. New Zealand  also provides reduced tariffs for a number of developing Members 
under the Generalised System of Preferences. Since 2015, New Zealand  has provided pref erential 
treatment for services suppliers from LDCs, and implemented the LDCs preferential rules of origin 
template.  
5.11.  New Zealand  is a firm advocate of small island developing states and LDCs participating in, 
and benefiting from, international and intra -regional trade. Development and economic cooperation 
provisions in the Pacific Agreement on Closer Economic Relations (PACER) Plus40, the CPTPP and 
AANZFTA support this goal. Since 2010, the AANZFTA Economic Cooperation Support Programme, 
co-funded by New Zealand  (with Australia), has supported over 12,000 people through its trade 
enabling projects. New Zealand  has provided NZD 4 million in development assistance to Pacific 
Island PACER Plus signatories to support their domestic ratification processes, and NZD 7 million to 
the new PACER Plus secretariat in Samoa, to strengthen Pacific members ' trade capability .  
5.12.  New Zealand  provided NZD 501.5  million in Aid for Trade (AfT), supporting economic 
infrastructure and capacity building (approximately 70% in the Pac ific) between 2018 -2021. To 
support PACER Plus implementation, and meet New Zealand' s commitment to spend 20% total 
Official Development Assistance on AfT initiatives in the Pacific, New Zealand  is developing an AfT 
Strategy to strengthen focus, collaborat ion and coordination in AfT design and delivery . New  Zealand  
has participated in the WTO 's AfT Global monitoring, evaluation and review exercises in 2015, 2017, 
2019 and 2022  
5.4  Inclusive and Sustainable Trade  
Inclusive Trade Action Group (ITAG)  
5.13.  New Zealand  is engaging in multilateral and plurilateral initiatives to promote inclusive and 
sustainable trade. In 2018, New Zealand  joined with Canada and Chile to establish the ITAG, 
welcoming Mexico in 2021. ITAG 's work programme aims to make trade policy more inc lusive and 
ensure trade benefits are more broadly shared. In some ways it is a natural extension of 
New Zealand' s domestically focused Trade for All agenda. ITAG members have held workshops, 
 
40 PACER Plus text and resources | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) . WT/TPR/G/426  • New Zealand  
 
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  meetings and webinars to develop understanding and share experien ces around Indigenous trade, 
women 's economic empowerment, agriculture and the sustainable development goals, and SME 
development . ITAG Ministers signed the group 's first instrument, the Global Trade and Gender 
Arrangement (GTAGA)41, in 2020. Mexico subseq uently joined in 2021. The GTAGA aims to increase 
the engagement of women in trade as part of overall efforts to promote women 's economic 
empowerment.  
Trade and Environment, Climate Change and Sustainability  
5.14.  Making New Zealand' s trade policy more sustaina ble is a key focus of Trade for All. The Trade 
for All Advisory Board recommended updating New Zealand' s trade and environment principles, 
which guide New Zealand' s FTA engagement in this area . The Government accepted the 
recommendation and a refresh is un derway.  
5.15.  Internationally, New Zealand  is a long -standing advocate of mutually supportive trade and 
environment outcomes across the multilateral, regional and bilateral agendas. New Zealand  is a 
leading proponent of phasing out and eliminating environmentally harmful subsidies, including the 
reform of agricultural, fisheries and fossil fuel subsidies. New Zealand  seeks a WTO  Agreement  
establishing meaningful fisheries subsidies disciplines as soon as possible. New Zealand  does not 
provide any subsidies that would incentivi ze greater fishing eff ort or capacity in its commercial 
fisheries and imposes levies ( NZD 30 million in 2020/21) on owners of commercial fishing rights to 
recover a significant portion of the costs of managing fisheries sustainably .  
5.16.  New Zealand  has led Joint Ministerial Statem ents on Fossil Fuel Subsidy Reform (FFSR) at the 
WTO's MC11 and in advance of MC12. The 2021 FFSR Joint Ministerial Statement42 seeks to 
elaborate  concrete options to advance FFSR at the WTO before MC13, and was cosponsored by 
45 WTO Members. New Zealand  is the founding member and Chair of the Friends of FFSR, a group 
of 10 countries seeking meaningful FFSR action across international fora. Through this group 
New Zealand  led the launch of the FFSR Communiqué at the 2015 Paris Climate Summit and a 
further st atement on its 5th anniversary in 2020. The group engages in ongoing advocacy and 
awareness raising efforts to encourage reform, including through side events in Geneva.  
5.17.  Transparency is an important element of subsidy reform. New Zealand  has undergone 
two voluntary peer reviews of its fossil fuel support measures using the APEC (2015) and 
OECD  (2018) mechanisms. These found that New Zealand  does not have any fossil fuel subsidies 
that encourage wasteful consumption, however the OECD review found that New Zealand  had nine 
remaining indirect support measures that could support fossil fuels. Three of these measures are 
now terminated and the Go vernment committed in 2019 to evaluate the remaining indirect support 
measures and not introduce any new fossil fuel subsidies. Its evaluation was completed in 2021 and 
found that New Zealand  does not have any support measures that could directly or indire ctly support 
the wasteful consumption of fossil fuels. New Zealand  has the third highest share of renewable 
energy generation in the OECD and is working towards 100% renewable energy generation by 2030. 
Prices for energy products and services are set freel y by the market. New Zealand  is a member of 
the Powering Past Coal Initiative and became an associate member of the Beyond Oil and Gas 
Alliance (BOGA) in 2021.  
5.18.  New Zealand  is an active participant in the WTO Committee on Trade and Environment 
Committee an d related groupings at the WTO, including Friends of Advancing Sustainable Trade 
(FAST) and the Trade and Environmental Sustainability Structured Dialogue (TESSD). Until its 
suspension in 2016, New Zealand  was an active participant in negotiations for the Environmental 
Goods Agreement at the WTO.  
5.19.  New Zealand  used its APEC 2021 host year to drive regional trade and environment outcomes 
to support its multilateral ambitions. New Zealand  led APEC to achieve consensus on work towards 
operationali zing a volunta ry standstill on inefficient fossil fuel subsidies from the end of 2022; 
 
41 Inclusive Trade Action Group (ITAG) | New  Zealand Ministry of Foreign Affairs and Trade 
(mfat.govt.nz) . 
42 New Zealand relaunches campaign to deliver Jo int Ministerial Statement on Fossil Fuel Subsidy 
Reform (FFSR) at WTO MC12 | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) . WT/TPR/G/426  • New Zealand  
 
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  reinvigorating APEC 's work on environmental goods; and agreeing the first ever multilateral 
reference list of environmental and environmentally related services.  
5.20.  In regional agreements, CPTPP raised the standard for trade and environment policy settings . 
It includes new fisheries subsidy disciplines, obligations on the illegal take and trade in wildlife, and 
subjects the environment chapter to Dispute Settlement ch apter provisions . Bilaterally, New Zealand  
is working with partners to develop comprehensive trade and sustainable development chapters. 
The New Zealand -China FTA Upgrade added a chapter on environment and trade that includes 
enforcement of environmental l aws, non -derogation and non -discrimination commitments, as well 
as a consultation mechanism. A trade and environment chapter, including fossil fuel subsidy reform, 
prohibition on fishing subsidies that lead to overfishing and overcapacity and a comprehensi ve 
environmental goods list, is included in the NZ -UK FTA. A trade and sustainable development chapter 
is expected in the NZ -EU FTA .  
5.21.  New Zealand  is leading the first -of-its-kind Agreement on Climate Change, Trade and 
Sustainability (ACCTS) trade initiativ e in a group of six likeminded countries . It seeks to liberali ze 
trade in environmental goods and services, develop binding disciplines to eliminate harmful fossil 
fuel subsidies, and develop best -practice guidance for voluntary eco -labelling schemes. ACCT S is an 
open plurilateral initiative, that aims for multilateral outcomes over time and, once concluded, will 
be open to WTO Members that meet the established standard.  
Trade and Labour  
5.22.  Since 2015 New Zealand  has developed and improved its legislative set tings to address 
migrant exploitation, forced labour, trafficking in persons and modern slavery, as well as becoming 
party to a number of international treaties.43 Regulations prohibit the import of goods made with 
prison labour . Under the Government 's Plan of Action against Forced Labour, People Trafficking and 
Slavery , launched in 202144, legislation to combat exploitation in New Zealand' s global supply chains 
is being explored. Public consultation on options for addressing modern slavery in supply chains is 
expected to begin in 2022.  
5.23.  New Zealand  seeks trade and labour provisions as part of its FTA negotiations . Since 2015, 
Labour Chapter s have been included in the CPTPP (a new standard reaching across multiple FTA 
partners) and the NZ -UK FTA, plus provisions in the PACER Plus agreement.  New Zealand' s approach 
to trade and labour has been guided by high -level principles in the 2001 Cabinet -agreed Framework 
for Trade and Labour. This Framework will also be examined and refreshed with public engagement 
to improve its relevance to modern labour markets, as recommended by Trade for All Advisory 
Board.  
Women 's Economic Participation  
5.24.  The Global Trade and Gender Arrangement (GTAGA)45 is New Zealand' s first trade 
arrangement specifically on gender. It is a ground -breaking arrangement to increase women 's 
participation in trade and contribute to gender equality and women 's economic empowerment. 
Participants commit to address barriers faced by women participating in trade, with a focus on 
cooperation, promoting the arrangement, and seeking new participation . GTAGA also includes a 
commitment to voluntarily report on "respective experiences relating to p olicies and programmes to 
encourage women 's full and equal participation  …" in WTO Trade Policy Reviews. New Zealand  is 
pleased to report on this in paragraphs 5.25 -5.31 below.  
5.25.  Internationally, the COVID ‑19 pandemic has disproportionately impacted women an d girls, 
through greater health and safety risks, extra unpaid care work, increased gender -based violence, 
and economic disparity and insecurity. As part of the New Zealand  Government 's COVID ‑19 
 
43 This includes the ILO 's Forced Labour Convention, 1930 (No.  29). In December  2019, New  Zealand 
ratified the Pro tocol of 2014 to the Forced Labour Convention, 1930 and this entered into force 
in December  2020. In 2021 New  Zealand joined the United  States, the United  Kingdom and Canada in 
an ILO Statement  on forced and compulsory labour.  
44 Plan of  action against forced labour, people trafficking and slavery | Ministry of Business, Innovation 
& Employment (mbie.govt.nz) .  
45 Inclusive Trade Action Gro up (ITAG) | New  Zealand Ministry of Foreign Affairs and Trade 
(mfat.govt.nz) . WT/TPR/G/426  • New Zealand  
 
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  response, funding was made available in 2020 and 2021 for com munity organi zations which support 
women and girls, to help alleviate immediate needs. New Zealand  is actively working to address 
both the short and long -term economic and social disadvantages women face, particularly in the 
recovery from COVID ‑19.  
5.26.  In 201 8, New Zealand  committed to a three -year programme of work to reduce the gender 
pay gap in the Public Service, and it now stands at its lowest point since 2000. At 9.1 %, the current 
national gender pay gap also equals the lowest gap recorded. Research into exporting firms in 
New Zealand  has found that women are under -represented in goods exporting firms (40% of 
employees), and as low as 33% in manufacturing, wholesale tr ade, agriculture, forestry, and 
fisheries exporting firms. Larger gender wage gaps in exporting firms compared to non -exporting 
firms were also found, while 82% of goods exporting firms have a male majority in leadership team.46 
These new findings will be valuable in informing future initiatives to improve women 's participation 
and pay in trade and export -focused firms.  
5.27.  New Zealand  passed world leading equal pay legislation with the Equal Pay Amendment 
Act 2020, which includes a process for individual emplo yees and unions to raise a pay equity claim 
directly with an employer for work, which may be subject to systemic sex -based discrimination. 
New Zealand  has also made flexible work the default across the public service, allowing employees 
to more easily bala nce commitments and participate in the workforce. All of these changes contribute 
to creating an enabling environment for women 's cross -sector economic participation.  
5.28.  A 2018 government target to achieve 50% women 's representation on public sector boards 
and committees was achieved early in 2020. 53% of public service senior leadership roles are held 
by women . In the private sector, increasing numbers of Māori women in particular are leading 
businesses throughout New Zealand.  
5.29.  More progress is required, howe ver, including to address gender -based violence, and the 
poorer relative outcomes of Māori and Pacific Women. Women as a workforce are currently under -
employed, unemployed or under -utilized at a higher rate than men. One in three employed women 
work part -time, and of those part -time working women, one in five is under -employed. Barriers to 
fully utili zing women 's skills include the need for flexible work, part -time work, and managing 
childcare demands.  
5.30.  Development is underway on a Women 's Employment Action Plan to address cross -cutting 
issues that affect women 's ability to fully participate in the labour market and achieve economic 
resilience. Barriers and challenges related to women 's employment can be compounded by existing 
inequalities relating to ethnici ty, age, sex, gender, sexual orientation, religion, and disability. For 
this reason, those who typically experience poorer labour market outcomes will be central to actions 
to improve gender equality at work. The final Plan will be publicly released in 202 2. 
5.31.  New Zealand  actively supports regional and global initiatives . In APEC, New Zealand  is 
committed to implementing the La Serena Roadmap for Women and Inclusive Growth (2019 –2030)47 
and as APEC 2021 host, led the first year of monitoring and reporting on the Roadmap 
Implementation Plan agreed in 2020. In the WTO, New Zealand  signed the 2017 Buenos Aires Joint 
Declaration on Trade and Women 's Economic Empowerment  to remove barriers an d promote 
women 's participation in trade and the economy, and is an active member of the WTO Informal 
Group on Trade and Gender. New Zealand  has pursued specific chapters on Trade and Gender 
supporting women 's economic empowerment in its FTAs. This was ach ieved in the NZ -UK FTA, and 
a Trade and Gender outcome is expected in the New Zealand -EU and Pacific Alliance FTAs.  
6  REGIONAL ACTIVITIES  
6.1  Asia Pacific Economic Cooperation Forum (APEC)  
6.1.  As a founding economy of APEC, New Zealand  has played an active role in m aking APEC the 
preeminent trade and economic forum in the Asia -Pacific. In 2021, New Zealand  as host of APEC led 
 
46 Verevis, Cribbens, Mellor and Brunt (2022). 'All for Trade and Trade for All: Inclusive and Productive 
Characteristics of New  Zealand Goods Exporting Firms '. Available at www.mfat.govt.nz .  
47 The La Serena Roadmap for Women and Inclusive Growth (2019 -2030) | 2019 APEC Ministerial 
Documents | APEC .  WT/TPR/G/426  • New Zealand  
 
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  the region during the COVID ‑19 health and economic crisis. Consistent with New Zealand' s host year 
theme of 'Join, Work, Grow. Together. Haumi ē, Hui ē, Tāiki ē ', all APEC economies took tangible 
steps to collectively respond to the health and economic impacts of COVID ‑19, and build the 
foundation for more sustainable, inclusive and innovative economic growth and recovery .  
6.2.  Throughout 2021, New Zealand  helped to build consensus among the APEC economies to 
deliver concrete and meaningful results such as:  
• agreeing to help speed up the flow of vaccines and related goods across borders and 
reduced their costs ;  
• increasing use of digital processes at t he border to cut down on paperwork;  
• supporting the rules -based multilateral trading system with the WTO at its core;  
• establishing  a voluntary standstill on fossil fuel subsides;  
• agreeing a reference list of environmental and environmentally related services;  
• reinvigorating APEC 's work on trade in environmental goods; and  
• working on unlocking the economic potential of the region 's 270  million Indigenous 
Peoples.  
These priorities were informed by New Zealand  and APEC 's focus on extensive engagement with 
stakeholders such as the APEC Business Advisory Council (ABAC) .  
 
6.3.  As a result, at the APEC Economic Leaders ' Meeting in November 2021, the Aotearoa Plan of 
Action ( APA)48 was agreed. It sets APEC 's agenda for the next 20 years, and gives life to APEC 's 
Putrajaya Vision 2040, which was agreed in 2020 during Malaysia 's host year. The APA represents 
a major addition to the APEC architecture. Together, the APEC Putrajaya  Vision 2040  and the APA 
replace the 1994 Bogor Goals  and 1995 Osaka Action Agenda  respectively. The APA sets out 
ambitious objectives across a holistic trade and economic agenda, both regionally and domestically. 
Trade and investment, such as APEC 's suppo rt for the WTO, remains an important focus. 
New Zealand  has also expanded APEC 's agenda into other drivers of growth to ensure APEC remains 
responsive and relevant, such as innovation and digiti zation, inclusion, and sustainability, including 
climate actio n. 
6.2  East Asia Summit (EAS)  
6.4.  New Zealand  is a member of the East Asia Summit (EAS) and is a strong supporter of trade  
and economic integration in the EAS region. New Zealand  is a regular participant in the 
EAS Economic Ministers ' Meetings, and continues to be a leader in developing cooperation on trade 
policy best  practice in the Indo -Pacific region. The Regional Comprehensive Economic Partnership 
(RCEP) negotiations  were launched (2012) and concluded (2020) on the margins of the EAS. 
7  BILATERAL AND REGIONAL TRADE AGREEMENTS  
7.1.  Complementing New Zealand' s core commitment to the WTO and global trade integration, 
New Zealand  pursues comprehensive and high -quality FTAs at the bilateral, regional and plurilateral 
levels. These build on WTO  rules to promote ambition and future multilateral liberali zation. FTAs also 
help achieve the government 's economic growth and diversification goals, by providing new 
opportunities and reducing costs and barriers for businesses and exporters.  
7.2.  New Zealand  has ratified 15 high quality, comprehensive FTAs. In June  2021, these 
agreements covered 69% of New Zealand' s exports and 63% of its imports. These figures increase 
to 82% of exports and 86% of imports when including FTAs under negotiation or not yet in for ce. 
Since 2015, New Zealand  has ratified five new agreements and one upgraded agreement, concluded 
 
48 Aotearoa Plan of Action (apec.org) .  WT/TPR/G/426  • New Zealand  
 
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  one further agreement upgrade which will enter into force in April  2022, and reached one agreement 
in principle .  
7.1  New Zealand  – Australia Closer Economic Rel ationship (CER)  
7.3.  The 1983 Closer Economic Relationship (CER) Agreement49 is the most comprehensive and 
effective free trade agreement in the world, supporting the creation of a seamless trans -Tasman 
economic environment, the Single Economic Market (SEM) . Key SEM achievements since  2015 
include:  
• Australia -NZ Science, Research and Innovation Cooperation Agreement (2017) and 
ratification;  
• activation of domestic and trans -Tasman e -invoicing (2019);  
• agreement on a road map for the mutual recognition of d igital identity (2020); and  
• legislation updating the Trans -Tasman Retirement Savings Portability Arrangement 
(2021).  
7.2  New Zealand -China Free Trade Agreement – Upgrade  
7.4.  New Zealand' s 2008 FTA with China has been a success for both countries. China is now 
New Zealand' s largest trading partner, with two -way trade tripling from NZD 9 billion to over 
NZD 32 billion. In 2016, New Zealand  and China agreed to launch negotiations to upgrade and 
moderni ze the FTA, amending it to improve existing commitments and add new  areas. Negotiations 
covered TBT, customs procedures, cooperation and trade facilitation; Rules of origin; Services; 
Competition policy; E -commerce; Agricultural cooperation; Environment; and Government 
procurement. The Upgrade was signed in January 2021 a nd will enter into force on 7  April 2022, 
resulting in an  expansion of provisions improving market access and new chapters on competition 
policy, e -commerce, government procurement and environment and trade.  
7.3  Trans -Pacific Partnership (TPP) Agreement  
7.5.  The Tr ans-Pacific Partnership (TPP) Agreement is a free trade agreement to liberali ze trade and 
investment between 12 Pacific -rim countries: New Zealand , Australia, Brunei  Darussalam , Canada, 
Chile, Japan, Malaysia, Mexico, Peru, Singapore, the United  States  and Viet  Nam. The TPP was 
signed in 2016 and New Zealand , which is the depository for the TPP, ratified it in 2017. The TPP 
requires ratification by four other signatories including the US, however the US notified that it did 
not intend to become a party in 2017. The remaining members affirmed the TPP 's economic and 
strategic importance and went on to negotiate the CPTPP.  
7.4  Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP)  
7.6.  The Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) 
Agreement50 between 11 Asia -Pacific region countries, was signed in March 2018 and ratified in 
October 2018.51 New Zealand  is the depository for the CPTPP. CPTPP economies account for 13.3% 
of world GDP, worth US D 10.6 trillion. Annually, they take 25% of New Zealand' s goods exports 
(NZD 15.5 billion) and services exports ( NZD 3.8 billion)52 and provide 65% of foreign direct 
investment (March  2021). The CPTPP includes three of New Zealand' s top 10 trading partners, and 
four countries with which New Zealand  has never had a free trade agreement (Japan, Canada, 
Mexico and Peru) which receive NZD 4.9 billion of New Zealand' s goods and services exports. The 
CPTPP is estimated to save New Zealand  NZD 222 million in tariffs annuall y. 
 
49 NZ-Australia Closer Economic Relations (CER) | New  Zealand Ministry of Foreign Affairs and Trade 
(mfat.govt.nz) .  
50 Comprehensive and Progressive Agreement for Trans -Pacific Partnership text and resour ces | 
New Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) . 
51 New Zealand, Australia, Brunei  Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, 
and Viet  Nam.   
52 Year to September  2021.   WT/TPR/G/426  • New Zealand  
 
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  7.7.  The CPTPP includes m any of the elements negotiated in the TPP.  TPP obligations that have 
been suspended under the CPTPP are set out in Article  2 of CPTPP and the associated Annex to 
CPTPP. New Zealand  has also drafted side letters with select CPTPP memb ers, specifically:  
• treaty status a side letter between New Zealand  and Australia, which provides that the 
ISDS and trade remedies provisions will not apply between New Zealand  and Australia;  
• treaty status a side letter between New Zealand  and Peru, which p rovides that the ISDS 
provisions will not apply between New Zealand  and Peru; and  
• treaty status side letters that New Zealand  agreed with Viet  Nam, Brunei  Darussalam , and 
Malaysia, which require the explicit consent of the responding Party before an ISDS dispute 
can proceed beyond consultations or alternative dispute resolution.  
7.8.  The CPTPP is called progressive because it goes beyond reducing costs for businesses, by 
including commitments to safeguard high labour and environmental standards. Membership is open 
to other countries willing to meet its high standards. The U nited Kingdom  requested to accede to 
the Agreement in February  2021, China and Chinese  Taipei  requeste d to accede to the Agreement 
in September  2021 and Ecuador requested to accede to the Agreement in December  2021.  
7.5  New Zealand  – Singapore Closer Economic Partnership (CEP) Agreement – Upgrade  
7.9.  Since New Zealand' s Closer Economic Partnership (CEP) Agreement  with Singapore53 entered 
into force in 2001, Singapore has become New Zealand' s largest trading partner in South East Asia, 
with NZ D 5.7 billion of two -way trade and NZD 5.6 billion of two -way direct investment.54 In 2019 , 
New Zealand  and Singapore comple ted CEP Upgrade negotiations to moderni ze the CEP and serve 
as a benchmark and template for other negotiations. The CEP Upgrade entered into force in 2020 
and improves services market access, moderni zes goods trade rules and non -tariff barrier 
frameworks, updates competition and consumer protection, improves investment and includes new 
regulatory cooperation and e -commerce commitments.  
7.6  Pacific Agreement on Closer Economic Relations (PACER) Plus  
7.10.  The Pacific Agreement on Closer Economic Relations (PACER) Plu s55 is a unique trade and 
development agreement between 11 Pacific Island Forum (PIF) members: New Zealand , Australia, 
Cook Islands, Kiribati, Nauru, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu . Signed 
in 2017, the agreement entered into force in December  2020. A Labour Mobility Arrangement, 
signed alongside PACER Plus,  promotes regional labour mobility . Around 30% of Pacific signatories ' 
exports are to New Zealand  and Australia. New Zealand  is an important source of tourism for the 
region , worth NZD 633 million in 2020 and NZD 800 million in 2019. Trade between New Zealand  
and the PIF Members, excluding Australia, was worth NZD 3.1 billion in the year to June 2020 .  
7.11.  New Zealand' s Pacific neighbours face unique economic development challeng es including 
small size and difficulties achieving economies of scale, exacerbated by the COVID ‑19 pandemic 
which has severely affected tourism, trade and labour mobility. PACER Plus will raise living 
standards, create jobs and increase exports in Pacific Island countries, while also lowering barriers 
and providing greater certainty for New Zealand  businesses and investors. New Zealand  and 
Australia are providing AU D 25.5 million over five  years to support Pacific Island members adjust to 
PACER Plus and its  opportunities including through the establishment of a dedicated Implementation 
Unit based in Samoa.  
7.12.  Under PACER Plus, New Zealand  agreed to set a target of spending 20% of total Official 
Development Assistance (ODA) on aid for trade activities in the Pa cific. Based on MFAT 's ODA 
allocation for the next triennium (2021/22 -2023/24), New Zealand' s commitment equates to 
approximately NZ D 510 million for aid for trade activities in the Pacific over the next three years . 
Aid for Trade projects include the rollout of new customs software for six of the smaller Pacific Island 
 
53 CEP text | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) .  
54 Year to December 2019.  
55 PACER Plus text and resources | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.nz) .  WT/TPR/G/426  • New Zealand  
 
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  Countries, supporting the establishment of robust biosec urity export and import  systems, and 
building a regional and bilateral approach to qualifications recognition.  
7.7  Regional Comprehensive Economic Partnership (RCEP)  
7.13.  The Regional Comprehensive Economic Partnership  (RCEP)56 was signed by 15 economies in 
the Indo -Pacific region in 202 0.57 The agreement entered into force on 1  January  2022, including for 
New Zealand , becoming the biggest free trade agreement in the world . RCEP is projected to add 
NZD 186 billion to the world economy and increase New Zealand' s GDP by around NZD 2 billion . 
RCEP deepens New Zealand' s trade and economic connections in the region, an important element 
of New Zealand' s Trade Recovery Strategy . It is a significant milestone in the Indo -Pacific region 's 
economic integration.  
7.14.  RCEP will create a single set of rule s across the region for specific areas of trade. There are 
market access gains for New Zealand  beyond existing arrangements with RCEP partners. RCEP 
includes seven of New Zealand' s top 10 trading partners, who together account for almost a third of 
the wor ld's population and global GDP, take over half of New Zealand' s exports (61 % of goods, 45 % 
of services) and provide 61 % of New Zealand' s foreign direct investment. India participated in the 
negotiations, but has not signed RCEP. Should India choose to take  up the fast -track accession 
process to join RCEP given its status as an original negotiating party, this would be New Zealand' s 
first FTA with India and bring further commercial and strategic benefit to New Zealand' s participation 
in RCEP.  
7.8  Digital Economy  Partnership Agreement (DEPA)  
7.15.  The Digital Economy Partnership Agreement  (DEPA)58 was signed by New Zealand , Chile and 
Singapore in 2020, entering into force for New Zealand  and Singapore in January  2021, and Chile in 
November  2021. DEPA has  established new rules and practices to support and facilitate digital trade, 
and promote discussion on issues like digital inclusion, inclusive trade and support for small and 
medium enterprises (SMEs) in the digital economy. DEPA covers broad areas, from  e-invoicing to 
artificial intelligence, and will continue to evolve as new digital opportunities and issues emerge. It 
is designed to  complement WTO negotiations on e -commerce and builds on digital economy work 
underway within APEC, the OECD  and elsewhere . The DEPA is open to accessions provided the 
Agreement 's high standards can be met: the DEPA Parties agreed in 2021 to commence accession 
negotiations with the Republic of Korea , while China has also recently requested accession .  
7.9  New Zealand -United  Kingdom Free Trade Agreement (NZ -UK FTA)  
7.16.  In October 2021, New Zealand  and the U nited Kingdom  reached Agreement in Principle on 
the key elements of a new high quality, comprehensive and progressive FTA. After finali zation of the 
text and domestic ap proval, the NZ -UK FTA is expected to be signed in early 2022. The NZ -UK FTA 
supports diversification of New Zealand' s trading relationships under the Trade Recovery Strategy, 
and is an early example of FTA negotiations that respond to the Trade for All rec ommendations. For 
the first time, dedicated chapters on Māori economic and trade interests, trade and gender equality 
and consumer protection have been included.  
7.17.  The agreement is New Zealand' s first bilateral trade deal to include specific commitments on 
climate change and will also contain provisions eliminating environmentally harmful subsidies. This 
includes commitments to take steps to eliminate harmful fossil fuel subsidies, and to prohibit 
fisheries subsidies which lead to overfishing . The environmen t chapter will also prioriti ze the 
elimination of tariffs on at least 268 environmentally beneficial products – the largest environment 
goods list ever agreed in an FTA . For the first time in an environment chapter, both sides will also 
acknowledge the perspective of Māori  on the environment  and will include  Māori  concepts  such as 
kaitiakitanga  and whakapapa.59 
 
56 RCEP text and resources | New  Zealand Ministry of Foreign Affairs and Trade (mfat.govt.n z).  
57 Ten ASEAN members (Brunei Darussalam, Cambodia, Indonesia, Lao PDR , Malaysia, Myanmar, 
Philippines, Singapore, Thailand, Viet  Nam), plus five regional partners with which ASEAN has FTAs (Australia, 
China, Japan, New  Zealand and the Republic of Korea ).  
58 DEPA text and resources | New  Zealand Ministry of Foreign Affairs and Trade (mf at.govt.nz) .  
59 Translates respectively to guardianship and genealogy/ancestry.  WT/TPR/G/426  • New Zealand  
 
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  7.18.  The United Kingdom  is a crucial market for some key New Zealand  exports, as well as being 
a significant source of, and destinatio n for, New Zealand  investment. New Zealand  exports could 
rise by up to 40 % at full implementation, an estimated increase in New Zealand  GDP of 
NZD 970 million. Market access outcomes are among the very best New Zealand  has secured in any 
trade deal, elimin ating all tariffs on New Zealand  exports including over 97 % the day the FTA comes 
into force . High quality services and investment provisions will provide greater certainty for services 
exporters and investors. Visa access will be facilitated for specific categories of New Zealand  
business persons travelling and working in the U nited Kingdom , and the Agreement will include 
provisions aiming to facilitate the recognition of professional qualifications and registration between 
New Zealand  and the U nited Kingdom .  
7.19.  Secure and predictable conditions for investment will support the growth of two -way 
investment between both countries. The Agreement will also help to address non -tariff barriers to 
trade. This includes addressing technical trade barriers for wine, our largest export to the 
United Kingdom  (approximately NZD 469 million of New Zealand  wine is exported to 
the United Kingdom  each year). Streamlined customs procedures and digital trade facilitation 
provisions will promote connectivity between New Zealand  and the U nited Kingdom .  
7.10  Bilateral and Regional Trade Agreements under Negotiations  
7.20.  New Zealand  has a number of negotiations underway, in line with its trade diversification 
goal. New  Zealand  is working with the European  Union  to bring FTA negotiations to a successful 
conclusion and deliver a high-quality, comprehensive agree ment to foster even greater economic 
connection with the E uropean Union's 27 member states. The E uropean Union is already 
New Zealand' s fourth largest trading partner with two -way goods and services trade of 
NZD 16.5 billion. It is expected that the FTA wi ll deliver significant outcomes in the goods, services 
and investment sectors, and include ambitious outcomes on social and environmental priorities.  
New Zealand  and its AANZFTA partners are engaged in Upgrade Negotiations to ensure AANZFTA 's 
relevance to changing business and trade practices and to improve exporter access. New Zealand  is 
negotiating a free trade agreement with the Pacific Alliance that will improve economic links with 
the Latin American regional group of Chile, Colombia, Mexico and Peru. New Zealand  is breaking 
new ground in negotiations on an Agreement on Climate Change, Trade and Sustainability (ACCTS) 
with six partners. New Zealand  substantively concluded FTA negotiations with the Gulf Cooperation 
Council (GCC) in 2009. However, the agre ement never entered into force. New Zealand  is in 
discussion with the GCC on next steps.60 
8  OUTLOOK  
8.1.  A global trade recovery is predicted and New Zealand  is optimistic that this will be the case for 
New Zealand  as well. Trade is necessary to get through the COVID ‑19 pandemic and build a stronger 
and more resilient future, benefitting wellbeing in developed and developing countries alike. To that 
end, New Zealand  will continue its efforts to improve the condition s for expanded trade and 
investment with key markets, strengthen the institutions and rules governing international trade 
and investment, forge relationships with new partners, and work to ensure full implementation of 
WTO commitments by members. New Zeala nd will remain an active participant in WTO negotiations, 
seeking ambitious outcomes to address shared challenges, including health, environmental 
sustainability and climate change, and inclusive development and growth. As demonstrated by our 
APEC 2021 hos t year, New Zealand  will work collaboratively with others to achieve this, and will 
promote innovative approaches to progress new issues and inclusive outcomes.  While New Zealand  
pursues its trade policy multilaterally, regionally, and bilaterally, its mem bership of the WTO remains 
a lynch -pin. 
__________  
 
60 Bilateral FTA negotiations with India and RTA negotiations for the Trans -Pacific Partnership (TPP) and 
a New Zealand -Russian  Federation -Belarus -Kazakhstan agreement are curre ntly suspended.