WORLD TRADE  
ORGANIZATION  WT/TPR/G/216/Rev.1 
10 July 2009  
 
(09-3366) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
NEW ZEALAND 
 
Revision 
 
 
 
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by New Zealand is attached. 
 
 New Zealand WT/TPR/G/216/Rev.1 
 Page 3 
 
 
CONTENTS 
 
    Page 
I. OVERVIEW  5 
II. KEY DEVELOPMENTS IN ECONOMIC POLICY 5 
 (1) I NTRODUCTION  5 
 (2) C URRENT ECONOMIC PRIORITIES  6 
 (3) T AXATION POLICY  6 
 (4) I NVESTMENT POLICY  7 
 (5) B ANKING AND INSURANCE POLICY  8 
 (6) I MPACT OF THE GLOBAL FINANCIAL CRISIS AND POLICIES INTRODUCED IN RESPONSE  8 
III. KEY DEVELOPMENTS IN TRADE POLICY 9 
 (1) I NTRODUCTION  9 
 (2) D OMESTIC TARIFF AND TRADE POLICY  10 
(a) Agriculture 10 (b) Industrial products 10 
(c) Services 11 
(d) Trade legislation 11 
 (3) T
RADE POLICY OUTREACH  11 
 (4) M ULTILATERAL INITIATIVES  11 
(a) The World Trade Organization 11 
(b) OECD 16 
 (5) R EGIONAL ACTIVITIES  16 
(a) Asia Pacific Economic Cooperation Forum (APEC) 16 
(b) East Asia Summit (EAS) 17 
 (6) B ILATERAL AND REGIONAL TRADE AGREEMENTS  17 
(a) Australia/New Zealand Closer Economic Relationship 17 
(b) Thailand 18 
(c) Trans-Pacific Strategic Economi c Partnership Agreement (P4) 18 
(d) China Free Trade Agreement 19 
(e) The Agreement Establishing the ASEAN-Australia-New Zealand Free 
Trade Area 19 
(f) Malaysia – New Zealand Free Trade Agreement 19 
(g) Bilateral and Regional Trade Agreements under Negotiation 19 
IV. OUTLOOK  20 
 
 
 New Zealand WT/TPR/G/216/Rev.1 
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 I. OVERVIEW 
1. New Zealand is pleased to submit its fourth Tr ade Policy Review (TPR) for the scrutiny of 
fellow World Trade Organisation (WTO) Members.  
2. This report has been drafted at a time when th e world is addressing the challenges of a global 
financial crisis.  New Zealand's economic policy settings, established over the last 25 years, are such 
that it is relatively well-positioned today to weather the impact of the global recession. 
3. Current government priorities are improving productivity, reducing business compliance 
costs, increasing investment in general infrastru cture and lifting education standards and workforce 
skills.  Specific responses to the crisis have focu ssed on ensuring confidence in the domestic banking 
sector, introducing new measures to assist small a nd medium sized enterprises and new initiatives 
aimed at protecting and enhancing employment opportunities. 
4. Trade is an integral component of the New Zealand economy.  In the period under review, 
New Zealand's total exports increased by 20.66%  (from approximately NZ$42.6 billion in 2003 to 
NZ$51.4 billion in 2008), with total imports increasing by 32.25% (from approximately NZ$40 billion in 2003 to NZ$52.9 billion in 2008).  Total trade in goods and non-factor services 
amounted to 58.8% of GDP in 2007/08, compared to 57.8% of GDP in 2003/04.  For the year ending March 2008, exports comprised 29.0% of GDP, compared with 32.5% of GDP in 2003.  As a country 
with a strong reliance on export earnings, a firm s upporter of a free international trading system and 
the growth of the world economy, New Zealand is  a long-standing supporter of a non-discriminatory 
and rules-based multilateral trading system under the WTO.  
5. In New Zealand's view, the further strengthening of the WTO, including through an early 
conclusion of the Doha Round, is a key component in the mix of global policy approaches needed to 
respond effectively to the global fina ncial crisis.  New Zealand was di sappointed that, despite the very 
real progress made, agreement on modalities for c oncluding the agriculture and NAMA components 
of the Doha Round negotiations was not ultimately achie ved at the July 2008 Ministerial Meeting, nor 
subsequently in December last year.  New Zeal and remains committed to working with other WTO 
Members on the basis of the existing texts to s ecure the earliest possible conclusion to these 
negotiations.  New Zealand also strongly suppor ts international efforts - including though the 
WTO - to discourage protectionist measures which impact on trade flows. 
6. In tandem with, and complementary to, its focus on the WTO, New Zealand recognises the 
importance of its domestic policy settings as well as of bilateral and regional trade initiatives in 
further liberalising trade.  New Zealand believes that bilateral and regional trade agreements can 
complement and reinforce the multilateral trade system and has concluded a number of these 
agreements during the period under review.  In add ition, New Zealand is actively involved in regional 
integration processes throughout the Asia-Pacific. 
II. KEY DEVELOPMENTS IN ECONOMIC POLICY 
(1) I
NTRODUCTION  
7. As a consequence of an extensive programme of economic reforms during the late 1980s and 
early 1990s, New Zealand has been transformed in to a more open and competitive economy.  More 
recently, emphasis has been placed upon improving productivity, international linkages and 
innovation, addressing the quality and cost of regulati on, and investing in infrastructure.  During the WT/TPR/G/216/Rev.1 Trade Policy Review 
Page 6 
 
 
 period under review, New Zealand registered a fisc al surplus every year aside from 2008, partly as a 
result of the deterioration in the global financial s ituation.  The 2008 operating deficit is not expected 
to be ongoing. 
8. During the period under review, New Zealand h as pursued a number of initiatives aimed at 
improving the country's economic performance.  These are designed to enhance the international 
competitiveness of New Zealand firms, and support th e development of high-value activities.  These 
policies were structured under two general fra meworks:  the 2002-2005 "Growth and Innovation 
Framework", aimed at increasing productivity by improving innovation systems, workforce skills, international connections, and developing key enabling sectors; and the 2006-2008 "Economic 
Transformation Agenda", which focused on improvi ng the general climate for economic growth by 
raising productivity and catalysing the growth  of high value-added New Zealand firms. 
(2) C
URRENT ECONOMIC PRIORITIES  
9. The New Zealand Government seeks to deliver prosperity, security and opportunities for New 
Zealanders.  It sees increasing productivity as the ke y to further GDP growth.  Over the medium term, 
the Government is committed to improving producti vity by enhancing New Zealand's international 
competitiveness and fostering specialised skills and high-value production.  However, its immediate 
priority is to manage the impact of the global fina ncial crisis on New Zealand, with a particular focus 
on maintaining and enhancing opportunities for employ ment.  Moreover, the Government's view is 
that any short-term responses must also serve medium-term growth priorities. 
10. Upon taking office in November 2008, the Govern ment established five main priorities.  
Action is under way in the following areas: 
 1) Improving productivity and value for money in the public sector; 
 2) Lowering personal taxes, making regula tion simpler and more transparent, and 
enhancing competition policy; 
 3) Increasing investment in infrastructure in cluding road and electricity networks and 
broadband; 
 4) Lifting education standards and workers'  skills through the introduction of national 
standards in literacy and numeracy, support for apprenticeships, and voluntary 
bonding schemes; and 
 5) Reforming the 1991 Resource Management  Act (RMA) to streamline the consent 
process for new infrastructure and construction. 
 Further priorities are emerging in response to the fi nancial crisis, for example, from the Jobs Summit 
convened by the Prime Minister in February 2009. 
 
(3) T
AXATION POLICY  
11. The primary purpose of taxation in New Zealand is to raise revenue to finance government 
spending.  New Zealand has relatively broad b ases for goods and services tax (GST), company tax, 
and income tax.  This allows subs tantial amounts of revenue to be collected at rates which, with the 
exception of the company tax rate, are relatively lo w by OECD standards.  Due to tax reform in 
New Zealand being focused on delivering growth through an improved business climate and higher 
productivity, the Government reduced the company ta x rate in the 2008/09 income year from 33% to 
30%.  A personal tax relief package was introduced  in 2008 which will provide a three-year 
programme of changes to personal income tax rat es and thresholds as well as providing a tax credit New Zealand WT/TPR/G/216/Rev.1 
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 for independent earners.  New Zealand collects a re latively high proportion of its taxes on income and 
profits compared with other OECD countries.  This is in large part because Ne w Zealand has no social 
security tax.  
12. New Zealand has a system of taxation which is relatively easy for taxpayers to comply with.  
According to the World Bank, New Zealand has the second easiest system for companies to pay taxes 
amongst OECD countries.  Similarly, a recent Wo rld Bank and PricewaterhouseCoopers study ranked 
New Zealand seventh out of the 177 countries survey ed in terms of the least time taken to comply 
with tax requirements.  
(4) INVESTMENT POLICY  
13. New Zealand maintains an open framework fo r foreign investment, which recognises the 
contribution foreign investment makes to the econom y.  The total stock of FDI in New Zealand was 
NZ$93.3 billion as at 31 March 2008.  New Zealand's stock of FDI overseas to talled $20.9 billion.  
New Zealand's largest sources of FDI are Australia,  the United States and the United Kingdom.  There 
are no sectors from which FDI is fully excluded. Ne w Zealand's investment screening regime applies 
only to certain categories of investment. 
14. Domestic firms in New Zealand do not enjoy a taxation advantage over foreign investors, and 
there are no restrictions on the repatriation of funds.  Under the Overseas Investment Act 2005, 
foreign investments are not screened unless they would result in the acquisition of 25% or more 
ownership of, or a controlling interest in, significant business assets (or the establishment of a significant business asset), sensitive land or fishing quota.  "Signi ficant business assets" are shares or 
assets valued at more than NZ$100 million.  "S ensitive land" includes non-urban land exceeding 
5 hectares, any land on most off-shore islands, a ny land containing foreshore or seabed, specified 
islands or land including or adjo ining reserves, parks, historic or heritage areas in excess of 
0.4 hectares, and land adjoining the foreshore in  excess of 0.2 hectares.  There are also some 
restrictions on foreign ownership and control in respect of only two specific companies - Telecom 
Corporation of New Zealand Limited
1 and Air New Zealand.2 
15. The Overseas Investment Act 2005 and associated regulations will be reviewed in 2009.  The 
terms of reference for the review state that there is scope to improve the design and implementation of 
the current screening regime to ensure it provides cl arity, certainty and predictability for investors;  
ensures efficient processing of investment applicatio ns;  minimises compliance costs associated with 
applications for subsequent investments;  target s relevant concerns about  foreign investments and 
ensures positive outcomes for the New Zealand economy.  The objective of the review is to create an 
overseas investment screening regime that promotes and encourages the flow of investment into 
New Zealand. 
                                                      
1 The constitution of Telecom Corporation of New Z ealand Limited (Telecom) provides that no person 
shall have a relevant interest in 10% or more of the voting shares without the consent of the Minister of Finance 
and the Telecom Board, and no person who is not a New Zealand national shall have a relevant interest in more than 49.9% of the total voting shares without the written approval of the Minister of Finance.   
2 The constitution of Air New Zealand provides that  no person who is not a New Zealand national may 
hold or have an interest in equity securities which conf er 10% or more of the voting rights without the consent 
of the Minister of Transport.  There must be a maximum of eight directors and a minimum of five directors of 
Air New Zealand.  At least three direct ors must be ordinarily resident in New Zealand.  The majority of the Air 
New Zealand Board of directors must be New Zealand citizens. WT/TPR/G/216/Rev.1 Trade Policy Review 
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 16. In March 2008, the Government made a change to the Overseas Investment Regulations 2005 
that allowed Ministers to consider control of "s trategic infrastructure assets" when determining 
whether an investment in sensitive New Zealand la nd will provide a benefit to New Zealand.  This 
change did not affect the scope of investments that  are screened, but did expand the number of factors 
that the relevant Ministers may consider in determ ining whether an investment in sensitive land will 
provide a benefit to New Zealand.  This change will be considered as part of the review noted above.  
(5) BANKING AND INSURANCE POLICY  
17. Banks in New Zealand are regulated under th e Reserve Bank of New Zealand Act 1989, 
which is administered by the Reserve Bank of New Zealand (RBNZ).  The RBNZ has statutory independence to conduct monetary policy as well as promoting the maintenance of a sound and 
efficient financial system.  
18. Financial institutions in New Zealand do not ne ed to be registered to provide banking 
services, but must be registered to call them selves a bank.  The RBNZ does not guarantee banks 
against failure or difficulties, nor is any permanent deposit insura nce provided, although 
two guarantee schemes have recently been introduced  (see para 25 below).  In the event that a 
registered bank fails, the RBNZ will seek to minimise damage to the financial system in a way that 
does not involve taxpayer funding.  The RBNZ may act as  the lender of last resort and may also use 
its crisis management powers, which include placi ng a registered bank under statutory management 
and directing a registered bank that is in difficulty. 
19. Recent regulatory changes have included, inter alia , the implementation of the Basel II 
Capital Adequacy Framework;  the adoption of the New Zealand International Reporting Standards 
(NZ IFRS) and the introduction of the Trans-Ta sman Council on Banking Supervision (between 
Australia and New Zealand).  Functions of the Co uncil are to increase cooperation and information 
sharing with regards to bank supervision;  work toward policy harmonisation, mutual recognition of 
policies and assessing and reviewing the crisis prep aredness of Trans-Tasman Banks.  Other measures 
include changes in liquidity and liquidity risk  prudential regulations, and changes in banks' 
outsourcing policy. 
20. Non-bank deposit takers became subject to prudential regulatory oversight by the RBNZ in 
September 2008.  Essentially, these entities will be supervised by trustee companies based upon 
standard measurement ratios imposed by the RBNZ in  respect of Capital, Related Party Activity and 
Liquidity.  Furthermore, these entities will be required to obtain and disclose a credit rating from an approved ratings agency;  with re quirements imposed regarding the composition of their board.   
21. In December 2007, the previous New Zealand Government approved proposals for prudential 
regulation and supervision of the insurance sector .  Under these proposals, the RBNZ is to be the 
prudential regulator and supervisor of the sector.  Legislation to give effect to the prudential 
requirements is expected in 2009.  The insurance sect or is to be regulated much in the same vein as 
the banking sector, with an emphasis on corporate sel f discipline, director responsibility and published 
financial statements. 
(6) I
MPACT OF THE GLOBAL FINANCIAL CRISIS AND POLICIES INTRODUCED IN RESPONSE  
22. In June 2008, New Zealand entered its first technical recession sin ce 1997.  GDP decreased 
0.4% in the September 2008 quarter, following decr eases of 0.3% and 0.2% respectively in the New Zealand WT/TPR/G/216/Rev.1 
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 March and June 2008 quarters.  The Reserve Bank of New Zealand expects GDP to have fallen by 
0.8% in the December 2008 quarter. 
23. While unemployment increased in the December  2008 quarter, it remains comparatively low 
by OECD standards, at 4.6%.  The RBNZ has cut th e Official Cash Rate (OCR) by 5.25 percentage 
points since July 2008.  The OCR is now at 3.0%, its lowest ever level. 
24. New Zealand entered the global financial crisis  in reasonable shape, with low levels of 
unemployment and government debt.  To date, Ne w Zealand has not been as severely hit as other 
countries.  No banks have failed and mortgage de faults remain relatively low.  The four main 
Australian parent banks are among the few banks in ternationally rated AA or above, and currently 
hold capital above the minimum levels required. 
25. The previous Government took a number of steps to  counter the effects of the current crisis in 
late 2008.  A retail deposit guarantee scheme was announced in October,  with certain retail deposits 
of up to NZ$1 million guaranteed for two years.  On 1 November 2008, the then Government announced that it would offer a wholesale funding gu arantee facility to investment-grade financial 
institutions in New Zealand which have substantia l New Zealand borrowing and lending operations.  
The primary goal of the facility is to support the re -entry of New Zealand banks to regular foreign 
capital markets. 
26. Following the election of a new Government on 8 November 2008, the RBNZ announced in 
December 2008 temporary additional measures to enab le local banks to access liquidity in exchange 
for a broader range of assets su ch as bank paper and asset-backed securities.  To further improve 
liquidity prospects for the banking system, the R eserve Bank has temporarily broadened its market 
liquidity programme. 
27. In February 2009, as part of a small business relief package to small and medium sized 
businesses, the Government announced temporary cha nges to the mandate of the New Zealand Export 
Credit Office (NZECO).  To meet a shortfall in co mmercially available product,  NZECO will be able 
to provide short-term trade credit insurance at ma rket rates, on a temporary basis, to counter the 
effects of the current economic crisis.  NZECO programmes cove r operating costs and programme 
losses.  
28. Also in February 2009, the Government announced that $500 million worth of 
publicly-funded projects will be brought forward to c ontribute to the Government's economic stimulus 
programme.  Projects span housing, transport and e ducation sectors, and are spread widely across the 
country.  A Jobs Summit was convened by the Prime Minister, aimed at providing a practical forum – involving business, unions and the Government – to  test ideas and find workable solutions to 
maintaining high levels of employment. 
III. KEY DEVELOPMENTS IN TRADE POLICY 
(1) I
NTRODUCTION  
29. As noted in paragraph 4, trade is an integr al component of the New Zealand economy.  It 
remains a fundamental component of the Gove rnment's broader economic polices designed to 
promote sustained economic growth.  New Zeala nd's prospects of achieving this depend on it 
continuing to be able to sell its goods and services abroad.  These prospects would be improved by the 
removal of the substantial barriers in many key ma rkets, not least in products where New Zealand has WT/TPR/G/216/Rev.1 Trade Policy Review 
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 a comparative advantage.  Accordingly, New Zealand is committed to achieving further trade 
liberalisation through the WTO multilateral rules-ba sed system, and also pursues trade liberalisation 
through bilateral and regional initiatives.  The curre nt Government has established a goal of lifting the 
ratio of exports to GDP to 40% by 2020. 
(2) DOMESTIC TARIFF AND TRADE POLICY  
(a) Agriculture 
30. New Zealand's tariffs on agricultural products ha ve continued to decline since its previous 
Review in 2003.  The average applied MFN tariff under the WTO definition of agriculture was 1.8% 
in 2008/09, compared with 2.1% in 2002.  This is lower than New Zealand's overall simple average 
applied MFN tariff.   
31. In addition to low tariffs, total support provided to the agriculture sector is the lowest among 
OECD countries, with a Producer Support Estimate of  0.7%, which is less than a quarter of 1986-88 
levels.  This level of support compares to an aver age level of support provided to agriculture in OECD 
countries of 23% in 2007.  
32. All support provided to agriculture in New Z ealand falls under the "green box" classification 
which covers programmes which are minimally or n on trade distorting.  Support is provided mainly 
through expenditures on general services such as ag ricultural research and biosecurity controls for 
pests and diseases.  A large portion of the costs of regulatory and operational functions, including 
border control, are charged to the appropriate beneficiaries.  While New Zealand has an AMS commitment level as part of its Uruguay Round bindings it has not made use of this entitlement.  
33. Over 85% of New Zealand's agricultural producti on is exported.  This means that continuing 
to improve market access for agricultural exports is  an important objective for New Zealand.  Dairy 
and meat (two of New Zealand's key export sectors) face some of the highest levels of protection in 
world markets in terms of high tariffs and the use of tariff quotas to restrict or limit access.  Not only is protection high for these sectors, it is uniformly high across many countries.   
34. As trade in agricultural products is a signifi cant contributor to New Zealand's economy, its 
interest in clear and effective rules extends to measu res to protect human, plant, and animal health and 
life.  The maintenance of New Zealand's "pest fr ee status" is a realistic and achievable goal, if 
supported by a robust quarantine system.  Accordi ngly, prior to the importation of a new product 
(from either an existing or new supply country), New Zealand undertakes a risk analysis of the 
pathway and, in accordance with WTO requirements and obligations, establishes measures that are 
based on science and commensurate with the risk of  an associated pest being introduced with the 
product.  New Zealand recognises that this appr oach is resource-intensive, and accordingly 
contributes to trade-related capacity building in devel oping countries, to assist them to meet relevant 
biosecurity requirements. 
(b) Industrial products 
35. New Zealand has undertaken significant tariff reductions between July 2005 and July 2009.  
In 2005, 195 specific tariffs were replaced with ad valorem  rates, substantially reducing the level of 
protection afforded to parts of the New Zealand manufacturing sector.  While significant policy space 
exists between New Zealand's bound a nd applied tariffs, this space has not been utilised, nor are there New Zealand WT/TPR/G/216/Rev.1 
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 any plans to do so.  In 2008, more than 73% of im ports by value to New Zealand entered duty free.  
New Zealand has one of the lowest average MFN a pplied tariff rates in the OECD at just 2.4%.  
(c) Services 
36. Services form a vital component of the New Zealand economy, contributing around 71% of 
GDP.  Improved overseas market access for services exports is another area of priority for 
New Zealand.  Services exports provide one quarter of New Zeala nd's total export earnings, and are 
growing faster than goods exports.  Travel, education, transport and business services are 
New Zealand's main services exports, but the range  of exported services has diversified in recent 
years.  Increased predictability and legal certain ty for service exporters offers benefit for both 
exporters and consumers. 
37. By international standards, foreign service suppliers face few barriers to New Zealand's 
private services sector.  Where immigration and qu alification requirements have been met, national 
treatment is generally extended to foreign suppliers of services. 
(d) Trade legislation  
38. The New Zealand Parliament is in the pr ocess of amending the Temporary Safeguards 
Authorities Act.  The Trade (Safeguard Measures)  Bill, which will replace the present regime, is 
designed to ensure New Zealand's safeguard regime  promotes efficient, transparent, and objective 
investigative and decision-making processes. 
(3) TRADE POLICY OUTREACH  
39. The New Zealand Government is committed to open and transparent engagement and 
dialogue with domestic stakeholders on trade policy.   This includes through briefings provided to the 
general public and to industry asso ciations, targeted consultation calls with stakeholders, and 
publication of information in print and on a websit e.  An open subscription newsletter with updates on 
New Zealand's trade agenda is published bimonthly and offers contact information for feedback and 
comment from interested parties.  Benefits incl ude a greater domestic awareness of trade policy 
issues, and improved trade and external economic policy formulation.   
40. New Zealand also encourages its partners to ac tively engage with stakeholders.  It is, for 
instance, currently exploring how New Zealand c ould support the capacity development of non-State 
actors in Pacific Island countries to enable them to engage more effectively with their governments on 
trade policy issues. 
(4) MULTILATERAL INITIATIVES  
(a) The World Trade Organization 
41. For a small country with global trading interests, and a heavy reliance on export income, a 
strong, transparent, rules-based global trading system  is vital.  Many of New Zealand's exports face 
significant export barriers.  The WTO remains the mo st important tool in facilitating market access 
and reducing distortions in international trade, a nd is the only vehicle that can genuinely achieve 
multilateral liberalisation. 
42. The Uruguay Round resulted in significant gain s for the New Zealand economy.  Continued 
growth and development cannot be  taken for granted, however, a nd New Zealand is committed to WT/TPR/G/216/Rev.1 Trade Policy Review 
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 continuing to work hard with other WTO Members to reduce distortions in the trading system and 
barriers to its exports.   
(i) The Doha Round 
43. The Doha Round remains the Government's top trade priority.  Only the significant removal 
of trade barriers and trade-distorting domestic  support and other barriers through a successful 
conclusion of the Doha Round can deliver substan tial economic and social benefits to the wider 
membership of the WTO.  In particular, the Round has the potential to deliver significant benefits to 
developing countries.  New Zealand is committed to  ensuring that the outcome of the Doha Round 
serves to advance the economic pros pects of developing countries. 
44. New Zealand was disappointed that, despite the very real progress made, agreement on 
modalities for concluding the agriculture and NAM A components of the Doha Round negotiations 
was not ultimately achieved at the July 2008 Minister ial Meeting, nor subsequently in December last 
year.  Nevertheless, New Zealand remains committed  to working with other WTO Members to secure 
a prompt yet ambitious conclusion to the Doha Roun d negotiations on the basis of the current texts in 
agriculture and NAMA.  New Zealand sees conclu sion of the Round as a key component in a 
coordinated international response to  the global financial crisis.   
Agriculture Negotiations 
45. An ambitious outcome in agriculture is a key issue for the Doha Round, not only for 
New Zealand, but also for the many other WTO me mbers, especially developing country members, 
who currently face significant barriers to exporting their agricultural products.  New Zealand is 
committed to working closely with its Cairns Group colleagues and others to achieve an ambitious 
outcome on agriculture.  New Zealand's priorities for the WTO agriculture negotiations are clear: 
- The elimination of all export subsidies by 2013 as per the Hong Kong Ministerial 
declaration. 
- Significant increases in market access for agricultural exports across the board. 
- Deep cuts to trade distorting domestic support.   
46. New Zealand supports special and differential treatment for developing countries consistent 
with the overall objective of improving market  access opportunities especially for developing 
countries. 
NAMA Negotiations 
47. New Zealand's commitment to achieving a su ccessful conclusion of the Doha Round is 
demonstrated by a willingness to accept an emerging modalities package that, on the face of it, would 
appear to cut New Zealand's tariff bindings more th an most other developed countries.  New Zealand 
is an active participant in the negotiations, includi ng in discussions on sectoral liberalisation as part of 
the NAMA negotiations. 
Services Negotiations 
48. New Zealand is an active participant in the ongoing WTO services negotiations and is 
committed to an ambitious outcome to the Round.  New Zealand has made an ambitious Doha Round New Zealand WT/TPR/G/216/Rev.1 
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 offer and believes access to efficient, innovative and cost-competitive services provides an essential 
underpinning for growth and innovation across the New Zealand economy as a whole.  New Zealand is also supportive of an ambitious outcome in the concurrent negotiation of multilateral disciplines in 
domestic regulation, in order to give maximum effect to market access commitments. 
Rules Negotiations  
49. New Zealand supports negotiations to clarif y and improve WTO anti-dumping and subsidy 
disciplines in the present round;  the harmonisation of investigative practices across the anti-dumping 
and subsidy agreements, and improving transparency disciplines to make them more effective.  We 
have a particular interest in disciplines on subsid y practices in resource-based industries, such as 
agriculture, fisheries and energy, where subsidies not only distort trade and undermine development, 
but also provide incentives to over-produce with pot entially negative effects on the environment.  
50. New Zealand supports an ambitious outcome in  fisheries subsidies negotiations, based on a 
strong prohibition on subsidies that contribute to overcapacity and overfishing, while recognising the 
need for effective Special and Differential Tr eatment for developing country Members.  
New Zealand coordinates the like-minded 'Friends of  Fish' group.  An ambitious outcome on fisheries 
subsidies offers a potential win-win outcome for trade and the environment.  
Trade and Environment Negotiations 
51. New Zealand actively engages in trade and environment negotiations at the WTO.  
New Zealand continues to encourage a cooperative approach when determining the application of 
specific trade obligations that arise from multilateral agreements (Doha para 31(i)).  New Zealand is a 
key proponent of an ambitious outcome on envi ronmental goods and services (Doha para 31(iii), as 
this has the potential to deliver concrete ec onomic, environmental and developmental benefits. 
TRIPS Negotiations 
52. New Zealand actively participates in discussions across the wide range of issues considered 
by the TRIPS Council.  New Zealand is also an ac tive participant in the mandated negotiations in the 
TRIPS Council in Special Session, and is a co-sponsor  of the 'Joint Proposal', which would establish a 
multilateral system of notification and registrati on to facilitate the protection of geographical 
indications for wines and spirits eligible for protec tion in those Members participating in the system. 
Negotiating Group on Trade Facilitation 
53. New Zealand is fully committed to the nego tiations to establish a WTO trade facilitation 
agreement that will establish effective rules and provide clear guidance to Members.  New Zealand 
believes that such an agreement will assist  Members in accessing the gains from trade by, inter alia,  
lowering transaction costs and clarifying procedures asso ciated with international trade.  Such rules 
should contribute positively to these objectives and not be used as a means to increase barriers or be 
net trade restrictive. 
(ii) WTO General 
54. Since its last TPR, New Zealand has initiated one WTO dispute (WT/DS367 – Australia – 
measures affecting the importation of apples from New Zealand) and participated in a number of other 
disputes as a third party.  New Zealand consider s the WTO Dispute Settlement Understanding as one 
of the key achievements of the Uruguay Round.  It is a mechanism which serves all Members.  WT/TPR/G/216/Rev.1 Trade Policy Review 
Page 14 
 
 
 New Zealand sees the current review of the Di spute Settlement Understanding as an important 
opportunity to make practical improvements to the rul es agreed to in 1995 in light of experience since 
then. 
55. New Zealand continues to support comprehens ive membership of the WTO and has been 
actively involved in the ongoing  accession processes of several countries.  New Zealand was the 
first major agricultural exporting country to concl ude a bilateral goods market access agreement with 
Russia and has also played a prominent role in the accession processes of several of our Pacific 
neighbours including Tonga, Samo a, and Vanuatu.  Through its participation in such accession 
processes, New Zealand seeks to ensure new WTO Members join on the basis of conformity with 
WTO rules and regulations.  At the same time, New Zealand acknowledges that accession to the WTO can be onerous for developing and least de veloped countries which may therefore require 
additional assistance in both accessing the benefits and meeting the obligations of membership.  
56. New Zealand supports an enhanced role for th e WTO in monitoring trade policy responses to 
the financial crisis and in highlighting any tende ncy towards protectionist measures.  New Zealand 
also supports the role of the WTO in reminding Members of the importance of compliance with 
existing notification requirements. 
(iii) Trade and the Environment, and Trade and Labour 
57. Trade and environment and trade and labour are issues of increasing relevance in the global 
economic and developmental debate.  Countries are looking to trade and environment negotiations to 
deliver sustainable outcomes that not only promot e development but also adequately protect the 
environment.  And they are seeking appropriate recognition of, but also protection for, their comparative labour advantages.  Given the importan ce of trade to development, it is vital that 
environment standards and labour standards are not  misused for protectionist reasons.  Developing 
countries should not be denied the benefits of th e legitimate comparative advantage of lower labour 
costs, but this advantage should not be secure d by deliberately neglecting fundamental labour 
principles.   
58. New Zealand believes the maintenance and prom otion of appropriate labour and environment 
standards is fully compatible with, and indeed contributes to, sustainable economic development.  
New Zealand's objective is that trade policy, la bour policy and environmental policy should, where 
possible, be mutually supportive.   
59. New Zealand has taken a proactive approach towards addressing these issues in its bilateral 
and plurilateral trade agreements.  Trade and labour and trade and environment outcomes have been 
included in the broad context of all the FTA ag reements New Zealand h as concluded during the 
period under review.  This includes instruments on trade and labour and trade and the environment 
within the context of the Trans-Pacific Strategic Economic Partnership Agreement (P4), the NZ-China 
FTA and the ASEAN-Australia-New Zealand FTA (AANZFTA).  These instruments all include provisions which incorporate shared commitments, cooperation in areas of shared interests, and a consultative mechanism. 
60. New Zealand is also committed to the negotiatio n and utilisation of in ternational standards 
that create sustainable growth.  New Zealand's appr oach on trade and labour is based on the principles 
and rights set out in the International Labour Organisation (ILO) Declaration of Fundamental 
Principles and Rights at Work and its Follow-up .  Our approach to trade and environment 
complements and supports internati onal environmental commitments such as those made at the Earth New Zealand WT/TPR/G/216/Rev.1 
 Page 15 
 
 
 Summit and the World Summit on Sustainable Deve lopment, and in other relevant multilateral 
environment agreements. 
61. Since its last TPR, New Zealand has engaged ac tively in trade and environment negotiations 
at the WTO.  New Zealand will continue to supp ort ambitious outcomes in these negotiations.  In 
particular, ambitious outcomes on fisheries subsidies and on the elimination of tariffs on environmental goods has the potential to deliv er concrete economic , environmental and 
developmental benefits. 
(iv) Trade and Development 
62. In line with the Doha Declaration, New Zeal and has supported the centrality of development 
issues in the Doha Round, including developing countr y interests in areas su ch as improved access to 
markets, special and differential treatment in th e implementation of agreements, support for capacity 
building, and negotiation arrangements which take a ccount of developing country priorities, capacity 
constraints, vulnerabilities and other national conditions.   
63. New Zealand supports a WTO role in providing ef fective and efficient technical assistance, 
focussed on areas where it has a comparative advant age such as in building negotiating capacity and 
helping developing countries to understand the WTO rules and their implementation. 
64. In 2001, New Zealand extended the benefit of unilateral duty-free quota-free access for all 
least developed countries (LDCs).  Prior to the d ecision, New Zealand was already very close to 
duty-free access for LDCs, with 97.4% of their imports entering duty free at that time.  New Zealand 
also provides duty-free access to the economies of th e South Pacific under the South Pacific Regional 
Trade and Economic Co-operation Agreement, a nd provides reduced tariffs for a number of 
developing countries under the Gene ralised System of Preferences. 
65. New Zealand believes that trade can play an im portant role for development.  It enables 
countries to access more lucrative markets and cr eates new income, employment and consumption 
opportunities for poorer communities.  New Zealand supports developing country interests in areas 
such as improved access to markets, special and differe ntial treatment targeted to identified needs, the 
integration of developing countries into the multila teral trading system consistent with their own 
priorities and interests, and support for capacity development. 
66. In 2007, New Zealand provided NZ$39.3 milli on in Aid for Trade to help developing 
countries participate in and benefit from trade.  This is a nearly 70% increase in two years from 
NZ$23.3 million in 2005.  The increase primarily reflects additional support for economic infrastructure and the development of productive sectors in Pacific countries. 
67. New Zealand believes that the TPR mechanism can  be an important mechanism to highlight 
the relationship between trade and development a nd how the trade policies and practices of Members 
contribute to sustainable economic development.  ODA alone is not sufficient to lift people out of 
poverty and into opportunity – policies in areas such  as trade matter too.  By increasing transparency 
around New Zealand's trade policies, New Zealand hopes to demonstrate its commitment to see trade 
used to greatest effect to promote economic deve lopment for developing countries.  New Zealand 
would encourage the Secretariat and other Members to also consider how the TPR process can be 
better used in this way, including in terms of the wider coherence of Members' trade policies in the 
context of their development objectives. WT/TPR/G/216/Rev.1 Trade Policy Review 
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 (b) OECD 
68. New Zealand actively supports trade and agri culture-related work in the OECD, including 
through its participation in the Trade Committee, the Working Party of the Trade Committee, and the 
Joint Working Party on Trade and Environment whic h New Zealand currently chairs.  The OECD's 
high-quality analytical and policy-focussed 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 
is highly supportive of the OECD's work to promot e the benefits of trade liberalisation and to 
highlight the costs of protectionism;  and to promote policy coherence for development. 
(5) REGIONAL ACTIVITIES  
(a) Asia Pacific Economic Cooperation Forum (APEC) 
69. New Zealand continues to use its participati on in APEC to promote trade and investment 
liberalisation and to give impetus and support to the Doha Development Agenda.  New Zealand has 
been active in developing and promoting APEC's  Regional Economic Integr ation agenda and the 
concept of a Free Trade Area of the Asia Pacific re gion (FTAAP).  This is an ambitious agenda for 
promoting trade and investment liberalisation, fost ering closer integration between the economies of 
the region, improving the coherence between th e increasing number of FTAs across the region and 
thereby improving the environment for business. 
70. New Zealand has also supported efforts to broaden the scope of the regional economic 
integration agenda.  Alongside the "at the border" i ssues of trade and investment liberalisation, APEC 
has also built a programme of dialogue and capacity-building on "behind-the-border" structural reform issues and has recently begun to explore the scope for addressing "across-the-border" physical 
connectivity issues.  During 2007-08, as Chair of the APEC Economic Committee, New Zealand 
contributed to establishing structural reform  issues as a key pillar of APEC's agenda. 
71. New Zealand takes seriously A PEC's responsibility to respond constructively to the needs of 
business in the region, articulated by the APEC  Business Advisory Council.  New Zealand has 
worked with other economies to develop a progra mme of capacity-building workshops based on the 
World Bank's annual Doing Business survey, designed to improve the conditions for business, and has 
contributed to other trade facilitation projects. 
72. APEC is an important forum for Asia Pacific Leaders to develop regional responses to key 
issues of the day.  In 2007, New Zealand made an important contribution to the preparation of the Leaders' Declaration on Climate Change, Energy Security and Clean Development and in 2008 supported development of the Lima APEC Leaders'  Statement on the Global Economy.  New Zealand 
regards APEC as a valuable forum for advancing practical measures in response to climate change, 
including supporting work under way in the WTO, by promoting within the region the liberalisation 
of trade in environmental goods and services. 
73. New Zealand continues to support the efforts of  other member economies to achieve the 1994 
"Bogor Goals" of free and open trade and investment in the region by 2010 for developed economies and 2020 for developing economies.  New Zealand has supported the Individual Action Plan (IAP) 
peer review process as a mechanism for maintaini ng a focus on the achieveme nt of the Bogor Goals 
by all members.  At its last IAP Review, in 2007, New Zealand was independently assessed as having achieved eleven of the thirteen Bogor Goals a nd as being well advanced in achieving the other 
two goals in tariff liberalisation and services. New Zealand WT/TPR/G/216/Rev.1 
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 (b) East Asia Summit (EAS) 
74. New Zealand is a member of the East As ia Summit (EAS), which was established in 
Kuala Lumpur in 2005.  At the second EAS in Cebu in early 2007, Leaders provided a mandate for the establishment of a Track II experts study group to consider a Comprehensive Economic 
Partnership in East Asia (CEPEA).  New Zealand is a strong supporter of CEPEA and the pursuit of 
an all-inclusive free-trade agre ement across the EAS region.  
(6) B
ILATERAL AND REGIONAL TRADE AGREEMENTS  
75. Maintaining and strengthening the multilateral trading system under the WTO remains the 
central pillar of New Zealand's trade policy.  At  the same time, New Zealand has also promoted 
regional and bilateral trade agreements and economi c integration as a means of complementing the 
multilateral trading system.  This New Zealand h as been active in this area since the 2003 TPR. 
76. New Zealand has consistently structured its free- trade agreements (FTAs) in ways that ensure 
they complement the multilateral trading system, a nd that make them a stepping stone rather than a 
stumbling block for further multilateral trade openi ngs.  FTAs which do not cover "substantially all 
trade" could have the effect of undermining th e multilateral system.  New Zealand believes that, 
provided they genuinely liberalise trade between countries, including by covering substantially all 
trade, FTAs can make an important strategic c ontribution to moving the WTO process forward.  
77. New Zealand thus seeks FTAs which are WTO- compatible, comprehensive in scope and 
which improve New Zealand's market access particular ly in goods, services, and investment, as well 
as to secure commitments from our trading partners on a range of related issues such as intellectual 
property, competition policy, la bour and environment. New Zealand recognises that free-trade 
agreements with key trading part ners can open up important new oppor tunities for exporters and often 
in a shorter time frame than is possible in the multilateral process. 
78. New Zealand sees FTAs as an opportunity not only to remove tariff barriers on a bilateral 
basis, but also to deepen economic integration w ith its trading partners across the wider trade and 
investment relationship.  This is based on a recognition that trade flows are affected as much by internal regulatory and administrative barriers as by tariffs, quotas and other external barriers to trade.    
79. At the time of our previous TPR in 2003, New Zealand had two comprehensive FTAs in 
force – the Australia/New Zealand Closer Econom ic Relationship; and the Agreement between 
New Zealand and Singapore on a Closer Economic Part nership.  The following developments have 
taken place during the period under review. 
(a) Australia/New Zealand Closer Economic Relationship 
80. Australia and New Zealand have one of the most open economic and trade relationships 
between any two countries, characterised by substant ial flows of merchandise trade, services, capital, 
labour and people between the two countries.  The economic relationshi p is underpinned and 
strengthened by a near-comprehensive set of trad e and economic arrangements, collectively known as 
CER (Closer Economic Relations). 
81. Since the foundation agreement (ANZCERTA) w as signed 26 years ago, the relationship has 
been both deepened and broadened into a process now referred to as th e Single Economic Market 
(SEM) agenda.  The SEM agenda builds on ANZCERTA's liberalisation of barriers at the border to WT/TPR/G/216/Rev.1 Trade Policy Review 
Page 18 
 
 
 deepen integration by identifying innovative, low-cost  actions behind the border.  The aim is to reduce 
discrimination and costs arising from different, conflic ting or duplicate regulations or institutions in 
each country.  Both countries are strong supporters of the SEM goal. 
82. Early moves towards closer economic integra tion include the 1998 Trans Tasman Mutual 
Recognition Arrangement (TTMRA) and the 1998 and 2000 Memoranda of Understanding (MoU) on 
business law.  The TTMRA provides for mutual re cognition of sales-related goods standards, and 
occupations registration between New Zealand and Australia, while the MoUs on business law have 
enhanced the operating environment and reduced tr ansactions costs for trans-Tasman businesses.  
83. A range of initiatives to deepen and strengthen economic integration have been undertaken in 
recent years.  For example, the Trans-Tasman Tr eaty on Mutual Recognition of Securities Offerings, 
which entered into effect in June 2008, will make  raising capital and inves ting between New Zealand 
and Australia easier;  the signature in July 2008 of a Treaty on Trans-Tasman Court Proceedings and 
Regulatory Enforcement will facilitate enforcement of  civil legal proceedings across the Tasman;  and 
work is ongoing in other areas such as the coor dination of financial re porting standards and on 
competition and consumer law, rec ognition of disqualification of directors, mutual recognition of 
auditors, coordination of accounting sta ndards and banking supervision.   
84. It is expected that in the course of 2009 New Z ealand and Australia will finalise a scheme to 
allow for portability of retirement savings;  negotia te a CER Investment Protocol, and revise a number 
of extant CER instruments, including the Double Ta xation Agreement, CER Rules of Origin, and the 
Joint Food Standards Treaty. 
(b) Thailand 
85. New Zealand's Closer Economic Partnership w ith Thailand will phase out all tariffs by 2025 
(i.e. 20 years from entry-into-force of the agreement) , although more than half of all tariffs were 
eliminated when the agreement en tered into force in 2005.  New Zealand's tariffs against Thailand's 
imports will be eliminated by 1 January 2015.  La bour and environment arra ngements were negotiated 
in parallel with the CEP.  At the time of the signing, both sides agreed to the future scheduling of 
services and government procurement negotiations, to complete the CEP.  New Zealand remains 
committed to working with Thailand on these mandated negotiations.  
(c) Trans-Pacific Strategic Economic Partnership Agreement (P4) 
86. The Trans-Pacific Strategic Economic Partners hip Agreement (Trans-P acific Partnership), 
which has been known as P4, is a free-trade agre ement between New Zealand, Brunei Darussalam, 
Chile, and Singapore.  It entered into force in 2006, with chapters on investment and financial services 
to be negotiated two years later.  Negotiations  on investment and financial services began in 
March 2008, with the United States participating alongside the P4 countries.  Brunei Darussalam, 
which had joined the P4 shortly before the conclu sion of the negotiations, was given additional time 
to negotiate its commitments under P4 on services an d government procurement.  The negotiations on 
those commitments have now been completed and Br unei Darussalam is expected to complete its 
ratification of P4 by mid-2009. New Zealand WT/TPR/G/216/Rev.1 
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 (d) China Free Trade Agreement 
87. On 1 October 2008, New Zealand's FTA with Chin a entered into force, being the first FTA 
concluded between a developed country and China.   This FTA is comprehensive and based on a 
'WTO-plus' approach.  
88. Tariffs on goods are reduced on a mostly linear basis over a total period of up to 12 years, 
thereby allowing an adjustment phase for import-sen sitive sectors.  Services commitments made in 
the FTA are substantial, and cover modes 1-4.  MFN provisions in investment, and some services 
sectors, obligate both New Zealand and China to exte nd to each other any extra commitments in these 
areas under new FTAs with third countries.  Additional binding agre ements on Labour and 
Environment cooperation have been signed, pr oviding further possibilities for cooperation and 
capacity building. 
(e) The Agreement Establishing the ASEAN- Australia-New Zealand Free Trade Area 
89. The Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area 
(AANZFTA) was signed on 27 February 2009 at the ASEAN Summit in Hua Hin, Thailand.  
(AANZFTA will enter into force either by 1 July  2009, or 60 days after the date by which 
New Zealand, Australia and at least four ASEAN countries notify that they have ratified it.)   
AANZFTA represents a significant milestone in New Zealand's engagement and ongoing integration 
into the ASEAN region.  Benefits for New Zealand exporters include the phase d elimination of trade 
barriers, greater certainty and transparency, and redu ctions in associated transaction costs.  Tariffs on 
goods are eliminated over a total period of up to 12 year s.  As with the FTA with China, this provides 
an adjustment phase for both sides' import-sensitiv e sectors.  There are new GATS-plus commitments 
in services sectors in areas of interest to New Zeal and.  There is an investment chapter which adds 
new protections for New Zealand investors and investments into the region.  Additional binding trade 
and labour instruments have been signed with the Philippines and these complement existing 
outcomes on these two subjects with Thailand, Singapore, and Brunei.   
(f) Malaysia – New Zealand Free Trade Agreement 
90. The Malaysia-New Zealand FTA was concluded on 30 May at the end of the tenth round of 
negotiations. This high-quality an d comprehensive FTA provides commercially meaningful benefits 
over and above those already secured under AANZFTA .  The outcome secures improved market 
access and greater certainty for goods and services exporters as well as investors through a range 
of "AANZFTA-plus" outcomes. Malaysia and New Zealand are now undertaking legal and technical 
verification of the texts and the associated schedules , with the agreement expected to be signed in 
2009. As agreed between the Parties, the details of  the Agreement will be made publically available 
upon signature. 
(g) Bilateral and Regional Trade Agreements under Negotiation 
91. New Zealand currently has a number of FTA nego tiations under way.  The expansion of the 
Trans-Pacific Strategic Economic Partnership to include the United States, Australia, Peru, and 
Viet Nam (the latter observing initially as an associate member) gives the Agreement greater 
importance as a potential building block for further re gional economic integration.  At a later stage, 
the TPP is expected to expand further to include  other like-minded economies in the Asia-Pacific 
committed to high-quality trade liberalisa tion within a plurilateral framework.  WT/TPR/G/216/Rev.1 Trade Policy Review 
Page 20 
 
 
 92. Other FTA negotiations under way, or likely to commence in the next twelve months, include 
negotiations with Malaysia, Hong Kong, the Gulf Cooperation Council countries, Korea, and India.  
Efforts are also ongoing to pursue greater economic integration and trade among Pacific Forum countries.  
IV. OUTLOOK 
93. Notwithstanding the broadening and deepening of  New Zealand's recent engagement through 
FTAs, New Zealand's highest trade policy priority remains the earliest possible conclusion of the 
Doha Round.  New Zealand will continue to work with other WTO Members to achieve that goal and 
to guard against protectionism.  Reinforcement of  the multilateral rules-based trading system will 
remain a priority in New Zealand's endeavours to  contribute to efforts to pursue an efficient 
international economic and trading framework.  
94. More generally, New Zealand will continue its efforts to bring down barriers to trade and 
investment in key markets, strengthen the institu tions and rules governing international trade and 
investment, forge relationships with new partners , and ensure that other WTO Members live up to 
their commitments.  New Zealand will continue to work to promote the benefits of free trade for 
developed and developing countries alike.  To that end, New Zealand will continue to pursue its trade 
policy interests multilaterally, regionally, and bila terally with key partners.  New Zealand's 
membership of the WTO is the lynch-pin of its wider trade strategy. 
 
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