WORLD TRADE  
ORGANIZATION  WT/TPR/M/216 
22 July 2009 
 (09-3580) 
Trade Policy Review Body 
10 and 12 June 2009  
 
 
 
TRADE POLICY REVIEW 
 
NEW ZEALAND 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF NEW ZEALAND 4 
III. STATEMENT BY THE DISCUSSANT 7 IV. STATEMENTS BY MEMBERS 10 
V. REPLIES BY THE REPRESENTATIVE  OF NEW ZEALAND AND ADDITIONAL 
COMMENTS  31 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 40 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by Mozambique are 
reproduced in document WT/TPR/M/216/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/216 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fourth Trade Policy Review of New Zeal and was held on 10 and 12 June 2009.  The 
Chairperson H.E. Mr. Istvan Major (Hungary) welcom ed the delegation of New Zealand, headed by 
H.E. Mr. David Walker, Permanent Representative to  the WTO, and the discussant, H.E. Mr. Martin 
Glass (Hong Kong, China).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by New Zealand was contained in document 
WT/TPR/G/216 and that of the WTO Secretariat in WT/TPR/S/216. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of New Zealand:  Brazil;  China;  Turkey;  
Mexico;  the European Communities;  the Republic  of Korea;  Chile;  Ecuador;  Australia;  
Swtizerland;  Hong Kong, China;  Colombia;  Tha iland;  Chinese Taipei;  Canada;  Japan;  and the 
United States.  All advance questions, as well as the responses received from the delegation of New 
Zealand are reproduced in WT/TPR/M/216/Add.1. 
4. The following delegations had submitted written que stions after the two-week deadline:  India 
and Argentina.  Additional questions were received from the Republic of Kore a;  Thailand;  Mexico; 
Brazil;  China;  and Canada.  
5. The Chairperson said that he had considered the reports prepared by New Zealand and the 
Secretariat.  Both reports noted that since its pr evious Trade Policy Review in 2003, New Zealand had 
undertaken prudent macroeconomic policy measures a nd continued restructuring.  New Zealand had 
maintained its strong reliance on export earnings – largely from primary products, and remained a 
firm supporter of an open multilateral trading system  and an early conclusion of the Doha Round.  
Concerning New Zealand's trade policy regime, whic h remained among the most open in the world, 
the Government had proceeded with further reduc tion of the already low tariffs and had limited 
recourse to NTMs other than SPS.  At the same ti me, the Government apparently recognized the need 
for improving productivity and inte rnational competitiveness, and ac tion was being taken in this 
respect.  He was sure that Members would be intere sted in learning more about the outcome of action 
taken to deal with the impact of global econom ic crisis, efforts to correct the country's 
macroeconomic imbalances, ways for raising FDI inflows, initiativ es for reducing export dependence 
on commodities and plans for further expanding FTA arrangements. WT/TPR/M/216 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF NEW ZEALAND  
6. We have provided written responses to all of  the more of 206 questions submitted by the 
closing date, as well as almost all of the 103 questions that reached us after this date. We will work to 
ensure a similar promptness with regard to all fu rther written questions put to us recently, and will 
also do our best to respond to oral comments and questions as part of discussion today and on Friday.  
7. Before I address the substance, I would like to reiterate the importance New Zealand attaches 
to the transparency pillar of the WTO, with th e trade policy reviews at its core. We see the TPR 
mechanism as invaluable, through its promotion of  domestic transparency, and by assisting economies 
work towards the WTO goal of liberalised, open tr ade in goods and services.  Trade Policy Reviews 
also highlight Members’ autonomous and preferentia l liberalisation efforts and their impact on the 
multilateral trading system, and provide a useful foru m for Members to explain their particular trade 
policy ambitions in the context of their wider economic and development needs.  
8. The deterioration in the global economic outlook h as been swift. The financial crisis is now 
having a strong effect on the real economy. Ne w Zealand’s trade and economic policy settings, 
established over the last 25 years, are such that we have been relatively well-positioned today to 
weather the impact of the global downturn.  
9. Specific responses from New Zealand to the crisis  have focused on ensuring confidence in the 
domestic banking and financial sect or, introducing new measures to assist small and medium sized 
enterprises, and new initiatives aimed at maintain ing and enhancing employment opportunities.  
These measures have been described in our government report, and reported to the WTO as part of the 
Director-General’s regular reports to the Trade Policy Review Body on the Financial and Economic 
Crisis and Trade Related Developments, and we will continue to do our best to ensure that 
notifications to that process are up-to-date.   
10. New Zealand acknowledges that the current politi cal environment for trade negotiations has 
become more difficult.  Equally, however, New Zeala nd believes it is vital that countries do not resort 
to short term politically expedient measures which seek to protect their own economies while harming 
their neighbours.    
11. In this context, New Zealand has, along with  a range of other WTO members, committed to 
abide by the Declaration by the Group of Twenty in London, inter alia , to refrain from raising new 
barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing WTO inconsistent measures to stimulate exports.   This pledge stands until the end of 
2010.    
12. This commitment includes, in our view, rec ourse to WTO consistent measures which distort 
or impede legitimate trade. It has been predicte d that if full recourse was made to such ‘legal’ 
measures or ‘policy space’, it would lead to  a further 11% decrease in world trade. 
13. New Zealand is encouraging international organizations, including the WTO, OECD and 
APEC, to take an active role in monitoring, and discouraging protectionism.  We are also supportive 
of efforts to analyse the impacts of protectionist measures. 
14. Domestically current government priorities are improving productivity, reducing business 
compliance costs, increasing investment in general infrastructure, and lifting education standards and 
workforce skills. Trade is an integral component of the New Zealand economy. In the period under 
review, New Zealand’s total exports increased by more  than 20.66%, with total imports increasing by 
more than 32.35%.  Total trade in  goods and non-factor services amounted to almost 60% of our GDP 
in 2007/08. The underlying objective of New Zeala nd’s trade policy is to promote New Zealand’s  WT/TPR/M/216 
 Page 5 
 
 
  economic growth through trade, and thus improve  the living standards of New Zealanders on a 
sustainable basis.  
15. New Zealand has one of the lowest average MF N applied tariff rates in the OECD, at just 
2.4%. New Zealand’s tariffs on agricultural products  have continued to decline since our previous 
review, with the average applied MFN tariff under th e WTO definition of agriculture being 1.8% in 
2008/09. While significant policy space exists betwee n New Zealand’s bound and applied tariffs, this 
space has not been utilized, nor are there any plans to do so. In addition to low tariffs, total support 
provided to the agricultural sector is the lowest  among OECD countries, with a Producer Support 
Estimate of 0.7%, compared to an average level of support to agriculture in OECD countries of 23% 
in 2007. 
16. In New Zealand’s view, the further strengthening  of the WTO, including through an early and 
ambitious conclusion to the Doha Round, is a key component of the mix of global policy approaches 
needed to respond effectively to the global econo mic crisis. The Doha R ound remains New Zealand’s 
top trade negotiation priority.  A successful outco me would do more than any other trade process to 
further international trade marker liberalisation and development.  At a time when world trade is 
predicted to fall by 9% in 2009, the creation of new trade flows would provide a much-needed boost 
for the global economy. A successful conclusion to th e Round would also be an effective, long-term 
insurance policy against the introduction of furt her trade-restrictive and welfare reducing policy 
measures. In addition, the WTO’s dispute settle ment procedures continue to provide a solid 
rules-based system for world trade, which is v itally important to a small country such as New 
Zealand.   
17. New Zealand also believes that bilateral and regional trade agreements can complement and 
reinforce the multilateral trade system.  New Zeal and has concluded a number of these agreements 
during the period since our last review.  Our objectiv e in doing so has been to seek to improve New 
Zealand’s access particularly in goods, services, and investment, as well as to secure commitments on related issues including sanitary and phytosanitary me asures, technical barriers to trade, intellectual 
property, government procurement and competition po licy.  We have also sought outcomes on trade 
and labour and trade and environment in the context of all of our FTAs.  
18. Since our last review, the ANZCERTA between New Zealand and Australia has evolved 
further, and negotiations are underway towards the c onclusion of an investment protocol to that 
agreement.  In addition New Zealand has concl uded agreements with Thailand (2005), the Trans-
Pacific partners Brunei, Chile and Singapore ( 2006), China (2008), ASEAN (2009) and most recently 
Malaysia.  These collectively cover some of our most  substantial destinations  for exports, and they 
provide new market access opportun ities as well as further certainty for our traders and investors into 
the region.  
19. Other negotiations underway include those with Korea, Hong Kong, China, and the Gulf 
Cooperation Council countries, and ne gotiations with India are in prospect. We also look forward to 
the commencement of negotiations in the near futu re to expand the Trans-Pacific Strategic Economic 
Partnership, which has significance as a potential bui lding block for future regional integration across 
the Pacific Basin. Finally, and closer to home, e fforts are also ongoing to pursue greater economic 
integration and trade among Pacific Forum countries.    
20. We acknowledge however that as valuable as these FTAs are to New Zealand and to our 
trading partners, they can only complement, a nd not replace, the multilateral trading system.   
21. Looking ahead to our next review – in 2015 – we are hopeful that the global economic 
environment will have improved significantly; that me mbers will be enjoying concrete benefits from 
the Doha Round, and that a more open trading syst em, with a strengthened WTO, will have confirmed WT/TPR/M/216 
Page 6  
 
  its value as an important component of the glob al economic architecture to deal with global 
challenges, such as poverty reduction, economic deve lopment, and environmental issues such as 
climate change.   
22. In the meantime, New Zealand will continue in its  efforts to bring the Doha negotiations to a 
successful and ambitious conclusion, to strengthen the institution of the WTO, and to contribute to 
further trade and investment flows through b ilateral and regional trading arrangements.  WT/TPR/M/216 
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  III. STATEMENT BY THE DISCUSSANT (H.E. Mr. Martin Glass (Hong Kong, China)) 
23. In general terms, as we all know and as you have just pointed out, the Trade Policy Review 
serves the important purposes of increasing the tran sparency and understanding of Members’ trade 
policies and practices, improving the quality of pub lic and intergovernmental  debate on the salient 
issues, and enabling a multilateral assessment to be un dertaken of the effects of Members’ policies on 
the global trading system. 
24. In the specific case of this trade policy re view, I am encouraged to note that, at the 
macroeconomic level, New Zealand has remained one of the more open economies in the world and I 
am particularly appreciative of the initiatives in  which it has recently participated to encourage 
resistance to protectionism.  It is nonetheless intere sting to note that this review has stimulated so 
many questions from other members on the economic and institutional environment, trade policies by 
measure and Sectoral policies.  I therefore appreciate the efforts by the Government to respond to these in a timely fashion and look forward to a vigorous discussion on these broad issues in the course of the review. 
25. New Zealand’s prudent macroeconomic policies,  together with some liberalisation and 
judicious restructuring, have contributed to steady growth in its real GDP, which has averaged 3.2% 
annually since 2003.  This has been due mainly to gr owth in domestic consumption.  The most recent 
figures for GDP are, however, expected to indicate a significant slowdown in the economy due to the 
current global conditions. 
26. New Zealand’s monetary policy has been relatively tight, and this has helped to keep inflation 
within the Reserve Bank’s medium-term target range of between 1 and 3 per cent.  As a result of the 
economic slowdown, there has, however, recently been  a considerable easing of monetary policy.  I 
note nevertheless from paragraph 2 of the Gove rnment report and also Ambassador Walker’s 
introduction that “New Zealand’s economic policy settings are such that it is relatively well-
positioned today to weather the impact of the global recession.” 
27. In terms of public finances, New Zealand has re gistered a fiscal surplus in each of the years 
under review.  Recent budgetary reform has focuse d on increased spending geared towards removing 
infrastructure bottlenecks as well as on tax cuts.  Th e stated purposes of tax reform are to deliver 
growth through improving the business and investment  climate, and to ensure that growth dividends 
are distributed fairly.  It is worth noting in p assing that New Zealand has one of the broadest-based 
and simplest systems for a Goods and Services Tax (or Value-added Tax) amongst those jurisdictions 
that impose one, and this would be a good model for others to emulate. 
28. Turning to trade in goods and services, this rose to nearly 59% of GDP in 2007/08 due to 
higher global oil prices.  Although the share of manufactures both in exports and imports declined during the period, both primary product exports an d imports increased their share, due to higher 
commodity prices, which have however since corre cted significantly.  New Zealand’s main export 
destinations in 2008 were Australia, the EC, th e US and Japan, in that order, which together 
accounted for nearly 55% of its exports.  In the ot her direction, major imports came from Australia, 
the EC, China and the US, totalling 56.5%. 
29. Australia also continued to provide the lion’s share of Foreign Direct Investment between 
2003 and 2008, with a surge in 2006 /07 in investme nt from that source to nearly NZ$7.5 billion.  
Under the Overseas Investment Act 2005, foreign i nvestments that would result in the acquisition of 
at least 25% ownership or controlling interest in significant business assets of more than NZ$100 
million, “Sensitive land” or fishing quotas, need to be screened.  WT/TPR/M/216 
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  30. As regards regional integration, it is to be not ed that New Zealand is an active negotiator of 
bilateral and plurilateral preferentia l trade agreements with its major trading partners in the region, 
such as Australia, ASEAN and China, and is continui ng or planning negotiations  with other partners 
further afield, such as the Gulf Co-operation Counc il, Korea, India and indeed, Hong Kong China.  
However, as pointed out by Ambassador Walker th is afternoon, the Government maintains that the 
central pillar of its trade policy remains to stre ngthen the multilateral trading system, and that the 
promotion of regional and bilateral trade agreements and economic inte gration are seen as a means to 
this end, by consistently structuring such agreem ents in order to complement the multilateral trading 
system and by making them stepping-stones rather than stumbling-blocks to multilateral progress. 
31. In terms of trade policy developments, the customs tariff remains New Zealand’s main trade 
policy instrument.  The average applied MFN tariff has dropped throughout the period from 4.1 per 
cent to 2.5 per cent, with a further slight reduction to 2.4 per cent planned for next month.  The tariff 
structure has been considerably simplif ied and now consists mainly of three ad valorem  rates of zero, 
5 per cent and 12.5 per cent, plus six specific rates. 
32. New Zealand has bound 99.6% of its tariff lines.  However, the average gaps of 9.1 and 
9.7 percentage points between applied and bound MFN rates for non-agricultural and agricultural 
items respectively does impart a degree of  unpredictability to the tariff regime. 
33. While no import restrictions or prohibitions are in place on commercial grounds, imports of 
animal and plant products are subject to relatively strict sanitary and phytosanitary laws.  However, 
the Government acknowledges that such an approach  is resource-intensive, and accordingly it makes 
a contribution to trade-related capacity building in developing countries, to assist them in meeting the 
relevant biosecurity requirements.   
34. Now, some points on Sectoral policy developmen ts.  As noted in the Secretariat’s report 
“Since its last Review, New Zealand has continued to  lower its average level of tariff protection as 
well as continuing with deregulation.  However, varying levels of border protection and state 
involvement persist in certain sectors, which represent potential impediments to the efficient 
allocation of resources in the economy.”  For example, the Fontera Co-operative Group is the main 
exporter of dairy products and enjoys exclusive Government licences to export such products to 
designated restricted markets, although such exclusiv ity is due to expire next year.  Similarly, the 
Zespri Group appears in effect to enjoy a near-monopol y on exports of kiwi fruit to most markets, and 
quotas are administered for certain meat exports to  the US and EC.  These dominant situations do 
raise competition policy concerns.  That said, productiv ity growth in agriculture  has exceeded that of 
the wider economy and the sector remains interna tionally competitive, accounting for around 60% of 
New Zealand’s merchandise exports in the last two years. 
35. The importance of manufacturing to the economy continues to be eroded as the sector’s 
shares of GDP, employment and exports are all decl ining: in the case of GDP from 14.4 per cent in 
2003/04 to 12.7 per cent in 2007/08.  The Governme nt’s objective in manufacturing is to develop a 
knowledge-based economy, and it sees increasing produc tivity as the key to further GDP growth.  
Over the medium term, the Government is comm itted to improving productivity and international 
competitiveness, and developing New Zealand into  a high-wage, high-value, innovative and export-
led economy. 
36. Finally, as for services, this sector has remained  relatively liberal and competitive, with low 
barriers to entry.  However, state involveme nt is observed in the banking, aviation and 
telecommunications sectors, with the latter two be ing subject to foreign investment caps.  The 
financial sector remains vulnerable, as most of the bank’s funding is from external sources and this is 
affected by variations in the world economic and financial regime.  Another factor adding to the 
vulnerability of the banking sector is the banks’ significant exposure to the real estate market.   WT/TPR/M/216 
 Page 9 
 
 
  Deteriorating economic conditions in  the housing market could give rise to defaults and therefore a 
rise in non-performing loans.  Nevertheless, accord ing to the Government Report, New Zealand has 
not been as severely hit as some other countries, no banks have failed and mort gage defaults remain 
relatively low.  Against this background, the cont inuing availability of trade finance to the private 
sector, particularly small and medium enterprises, on  affordable terms remains of crucial importance 
to further economic development. 
 WT/TPR/M/216 
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  IV. STATEMENTS BY MEMBERS 
BRAZIL 
37. We are pleased to see that the Government report reaffirms what we already witness on a 
daily basis, namely a clear expression of New Z ealand's support for the non-discriminatory, rules-
based trading system embodied by the WTO as well as the DDA negotiations. 
38. Indeed, the value of the WTO system as an inte rnational public good was put to test by the 
current financial and economic crisis .  Its resilience has been allowi ng Members to keep high intensity 
protectionism at by avoiding the recurrence of open beggar thy neighbour policies of the 30's.  
Nevertheless, there is ample room for low-inte nsity protectionism in Member's toolbox.  
Consequently, Brazil very much agrees with New Z ealand's view that the early conclusion of the 
DDA is "a key component in the mix of global policy  approaches needed to respond effectively" to 
the crisis. 
39. We also note the priority attributed by Ne w Zealand to achieving goals such as improving 
productivity, developing high-value and innovative activities and enhancing the business climate – 
rather than resorting to plain protectionism – th ey all point to the only truly effective means to 
overcome the negative impact of the crisis on employment levels and the overall economy. 
40. That is more so in countries, like New Zealand, where foreign trade accounts for a significant 
share of economic activiy.  Its growth and prospe rity depend very much on the preservation of trade 
flows undistorted by subsidies and other trade-restricting measures. 
41. New Zealand is an open economy.  Its trade figures have improved remarkably during the 
review period, with its exports growing 20.66%, its  imports by 32.35, and total trade now amounting 
to 59% of the GDP. 
42. There are other positive developments in New Zealand's economic policies.  The average 
applied MFN tariffs for agricultural products declin ed to 1.8% in 2008-2009 from 2.1% in 2002, and 
the average for non-agricultural goods stands now at 2. 4%.  The total level of support provided to the 
agricultural sector has been kept low with the producer support estimate at only 0.7%.  This is a 
crucial element in assessing the real degree of openness to trade of any economy. 
43. Openness to trade implies a strong commitment to the success of the Doha Round.  As I said 
before, Brazil shares that commitment and is pleased  to have worked closely with New Zealand in 
many initiatives related to those negotiations.  I will mention two examples here today:  our common 
participation in the Group of Cairns for agricultura l negotiations and the leading role played by New 
Zealand as coordinator of the Friends of Fish group in the fisheries subsidies discussions.  New 
Zealand has also provided the three last Chai rs of the Special Session of the Committee on 
Agriculture who have provided an outstanding cont ribution to the development of the draft modalities 
text in agriculture, the dossier th at remains oat the centre of the DDA. 
44. Turning now to the long-standing ties between Br azil and New Zealand, I would like to refer 
first to the fact that our bilate ral trade has increased almost thr ee-fold from US$57 million in 2001 to 
US$158 million last year.  In 2008, total bilateral tr ade grew by 58% even considering the effects of 
the financial crisis since last September.  Our ex ports to New Zealand grew by 12.5% in the period 
2007-2008, and imports from that country increased 171%. 
45. We note, however, that our bilateral trade, in  spite of the fact that it has been increasing 
steadily, is still relatively modest, which leaves much room for expansion.  It could be as well more 
diversified.  WT/TPR/M/216 
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  46. For instance, our imports from New Zealand have been concentrated on products such as 
dairy (8% of total imports), coal (27%) and some  types of telephonic sets and apparatus (18%).  
Together, these products represented more than ha lf of the Brazilian imports from New Zealand.  
Imports of dairy and kiwis were among the ones in which the most vigorous growth occurred last year:  47.54% and 175.26% respectively. 
47. On the exporting side, we note that the exchang es are slightly more diverse, comprising major 
items such as soybean oilcake, soybean oil, orange juice, coffee, motorcycles, and various auto-parts.  
The largest growth rates in 2007-2008 were verified  in the Brazilian exports of auto-parts:  almost 
seven-fold (621%) for dumpers and almost six-fold  (470%) in the case of bodies for motor vehicles. 
48. Brazil continues to follow with in terest internal developments in New Zealand with regard to 
trade policy.  We are also looking forward to deep ening our cooperation in the DDA negotiations with 
a view to ahieving an early successful outcome. 
CHINA 
49. This review is held at a critical time when all Members are facing the common challenge of 
the global financial and economic crisis. We believe that it will provide New Zealand with an 
opportunity to share with Members its expe rience in dealing with this challenge. 
50. China notes with pleasure that New Zealand remains among the most open economies in the 
world. We appreciate that New Zealand mainta ins its support for, and commitment to, the 
strengthening of the multilateral trading system. Chin a is also glad to see that New Zealand attaches 
high priority to making its laws and regulations transparent and readily accessible. Furthermore, China shares New Zealand’s position of supporting international efforts by the WTO together with 
other organizations, to discourage protectionist measures which affect negatively trade flows. 
51. China is fully aware of New Zealand’s str ong commitment to the early conclusion of the 
Doha round negotiations. The gr eat contributions made by New Zealand in this process are 
particularly reflected with the remarkable work done by former Ambassador now Minister Groser, 
Ambassador Falconer and now by Ambassador Walker as the Chairman of this most important 
negotiation group. New Zealand is definitely the b est outsourcing supplier for Ag Negotiating chairs 
apart from American Cup sailing captains. We look fo rward to the positive role that New Zealand will 
continue to play in the future. 
52. China and New Zealand are important trading partners, with China being New Zealand’s 
second largest source of import and its fourth larg est export market. The period under review has 
witnessed a rapid and sound development of our bila teral trade and economic ties. What strengthens 
our strong and mutually beneficial relations within  the multilateral trading system is the FTA between 
China and New Zealand. This FTA is China’s first comprehensive FTA covering areas of trade in goods, trade in services, investment, and others, which serves as a supplementary driving force of trade liberalization, together with the stable and f undamental role of the multilateral trading system in 
our bilateral economic and trade re lations. Our statistics indicate a bilateral trade volume of 4.4 billion 
USD in the year of 2008, which was a 19% growth ove r the previous year despite the impact of the 
financial crisis. This sound trade performance against the background of the global economic 
downturn proved the inter-dependent and complement ary aspect of our economies and the benefits we 
can draw through further liberalization efforts.  
TURKEY 
53. The first encounter of Turkey and New Zeala nd was on the battlefields of Gallipoli in 1915. 
Since then, this historical bond between the tw o countries have constitute d a strong foundation to WT/TPR/M/216 
Page 12  
 
  further strengthen and deepen our relations. Recentl y, we have hosted with pleasure the Governor 
General of New Zealand, Honorable Sir Anand Satyanand, in Turkey.  
54. Economic ties between Turkey and New Zealand have been developing steadily. However, it 
is clear that there is ample scope to improve this aspect of the relationship. 
55. The trade volume almost tripled to 115 milli on US dollars in 2008, compared with the 
previous trade policy review in 2003. Our exports were around 64 million dollars in the same year.  
56. While our principal exports are commercial vehi cles, dried fruits, and auto spare parts, New 
Zealand’s agricultural production provides inputs to  Turkey’s processing industries in textiles and 
leather. 
57. Investment relations are also in need of improvement. There are only 9 New Zealand 
companies currently operating in major industrial cities.  
58. Committed to enhancing the legal framework fo r more advantageous economic relations, both 
countries are looking at the possibilities to negotia te agreements on Avoida nce of Double Taxation 
Agreement, and Health Issues. 
59. Substantially improved growth and macroeconomic stability have enabled New Zealand to 
improve its economic environment to a large extent , and reduce unemployment to historic lows.  
60. As rightly pointed out at the Secretariat’s report, New Zealand has one of the most attractive 
economies in the world in which to do business. It offers an extensively deregulated, low-cost and 
resource-rich environment. Nevertheless, as in every other country, there is still room for improvement. Finding a solution to the productivity problems is essential in order to ensure sustainable growth and long-term competitiveness.  
61. Conclusion of Doha Round is one way forwar d to address such problems. New Zealand's 
commitment to advancing the global trade agenda a nd the conclusion of Doha Round is well known.  
62. It has made detailed and constructive proposals in difficult areas, including agriculture, to find 
a way forward and successfully conclude the Doha  negotiations. Particularly, in the field of 
agriculture negotiations, we are thankful for the very objective role played by the various New 
Zealender Chairmans over the years. Without Amb assador Falconer’s involvement, we believe that 
we would not be able to come this far.  
63. We hope that during the negotiations, New Z ealand will continue to observe the Doha 
mandates, and in this respect, to ensure the develo pment content of the negotiations, while striving for 
an ambitious outcome.  
64. In field of agriculture, we share New Zealand’s concerns that the trade distorting domestic 
support should be further disciplined as currently  being negotiated under Do ha agenda, and export 
subsidies should be avoided as much as possible until their phase out in 2013.  
65. New Zealand’s unilateral efforts to further lib eralize its trade regime are commendable. In 
this respect, we congrulate New Zealand for its  decision to further reduce tariffs until 2012. 
66. As a result, all countries enjoy good access to the New Zealand market with its low tariff 
structure. However, we must also point out that tariffs on products of export interest to developing 
countries, like textiles, clothing, and footwear, ar e high and escalating, compared with New Zealand’s 
overall tariff policy. We believe that this structure is important particularly in light of the fact that the  WT/TPR/M/216 
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  preferential access for developing countries to the New Zealand market has been further eroding as a 
result of various preferential agreements. 
67. On the positive side, we welcome the devel opments concerning reforms of most of the 
marketing boards and the deregulation of their export rights.  
68. Lastly we can not help but mention the re-nationalization of several state enterprises in New 
Zealand in the last decade while most of the developing countries were recommended exactly the 
opposite.  
MEXICO 
69. The Secretariat's report presents an enviable economic overview in describing New Zealand 
as one of the more open economies in the world,  with steady real GDP growth (despite having 
suffered a slowdown in growth), infl ation contained at 1 to 3 per cent,  a fiscal surplus in each of the 
five years under review, a capital a nd financial account in surplus owing to considerable foreign 
investment inflows, an increase in foreign excha nge reserves, and steady growth in investment and 
trade in goods and services during the period under review. 
70. The list of positive points for New Zealand exte nds equally to issues of trade policy, where 
the Secretariat's report notes a decrease in the averag e applied MFN tariff from 4.1 per cent in 2002 to 
2.5 per cent in 2008, a simplified tariff structure, a dvanced customs procedures, no import restrictions 
or prohibitions on commercial grounds, and the absence of import licensing requirements.  
New Zealand has no barriers to exports and does not  appear to provide direct subsidies for any 
sector-specific activities, among many other facets of a liberal trade policy. 
71. There are, however, some elements that give cause for concern:  for example, the current 
account deficit of 8 per cent of GDP, which repres ents a warning signal;  low productivity growth, 
which has resulted in part in the slowdown in grow th of New Zealand's GDP and which threatens to 
worsen its credit rating;  and the average gap of  9.1 percentage points between applied and bound 
MFN rates, which is very high.  Reducing this ga p would lessen the scope for unpredictability with 
regard to its tariff regime.  The New Zealand G overnment should respond to the concerns aroused by 
the dominance of a specific commercial group in the dairy market.  Also of concern is 
manufacturing's declining share of GDP, employme nt and agricultural exports, which represent 59 per 
cent of total exports.  Steps must be taken to deal w ith the latent risks posed by the vulnerability of the 
financial sector as a result of the banks' funding fro m external sources and their exposure to the real 
estate market, a sector in which, according to the report, an asset price bubble seems to have been 
created. 
72. We are pleased to note that several of  these issues are already being addressed by 
New Zealand, as mentioned in its report. 
73. New Zealand and Mexico have developed exce llent and close cooperation in the framework 
of APEC.  We share the objective of making further progress in liberalizing trade and investment flows within a sound multilateral trading system. 
74. New Zealand and Mexico have a bilateral trade relationshi p under the WTO rules (under 
which we mainly exchange "beer for milk").  The trade balance is in deficit for Mexico:  
New Zealand's total exports to Mexico came to nearly $500 million in 2008, according to our figures, 
while Mexico exported just over 10 per cent of th is amount, or $57 million.  Among the countries of 
the Pacific Rim, New Zealand ranks fifth as an investor  in our country.  Clearly, there is still room to 
improve these figures and to find mutual areas of opportunity. WT/TPR/M/216 
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  75. At the bilateral level, with the aim of finding  ways to strengthen ec onomic relations between 
the two countries, a Joint Group of Experts was es tablished in 2005.  Among its key recommendations 
was the promotion of trade and investment and t echnical cooperation as vehicl es for strengthening our 
economic ties. 
76. For this review, Mexico submitted a number of questions to New Zealand on the basis of the 
latter's report and the Secretariat report, focusing primarily on the issue of services, which remains a 
vital sector for New Zealand, with a 70 per cent shar e of its GDP.  We thank our partners in advance 
for the answers they have provided,  which we shall analyse carefully. 
77. It is very likely that meeting the challenges of th is global financial crisis  will require all of us 
to rethink certain strategies in the short term in order to move forwards.  However, both New Zealand 
and Mexico are convinced that protectionism is not the right path to take.  Trade is not the cause of 
the current crisis;  it is the solution.  New Zeala nd and Mexico have significantly lowered their tariffs 
instead of raising them.  The two countries are c onvinced that the conclusion of the Doha Round as 
soon as possible is the best way to avoid protectionist pressures around the world. 
78. I congratulate New Zealand for continuing to de monstrate that economic growth is not at 
odds with strict adherence to the WTO rules. 
EUROPEAN COMMUNITIES 
79. The EC and New Zealand have developed stro ng relations. It is, for example, worth 
mentioning that the EC has been New Zealand’s second trading partner (after Australia) since 1990. 
In 2008, total trade amounted to almost 6 billion euro; New Zealand's exports to the EC consisting 
mostly of agricultural products.  The EC remains to be one of the leading investors in New Zealand 
accounting for 10.2% of total FDI in New Zeala nd in 2007, ranking third after Australia and 
the United States. New Zealand states in its ow n report that it maintains an open framework for 
foreign investment, and confirms that there are no sec tors from which FDI is fully excluded.  There is 
an on-going review of the Overseas Investment Ac t, and we would be interested in learning more 
about the changes and improvements this review will bring about.   
80. The EC believes that economic developmen t should go hand in hand with social 
development. Striking the right balance between furt her economic and social development, as well as 
environmental protection, is indeed a great challenge  for all of us. Trade policy in particular should 
contribute to more sustainable production patterns rath er than to lower standards, both at home and 
abroad. We are pleased to see that New Zealand has paid special attention to the link between trade 
policies and sustainable development in its govern ment report prepared for this meeting. We are 
looking forward to learning more about the action plan that New Zealand is pursuing towards this 
endeavour. 
81. The EC has also taken good note of New Zealand's interest in promoting the TPRM to 
highlight the relationship between trade and develo pment and how the trade policies and practices of 
Members contribute to sustainable economic development. Indeed, the TPRM can serve to better 
monitor the global coherence of Member's trade policies in the context of their development 
objectives. We invite New Zealand to actively par ticipate in the next re-appraisal of the TPRM in 
order to pursue this initiative and any others that would make the TPR a more useful and 
comprehensive mechanism.  
82. New Zealand is an example of a small economy that has developed its great potential thanks 
to its strong support to the multilateral trading syst em and its firm commitment to maintain an open 
trade regime. However, it is obvious that not everything always goes as smoothly as it could and 
should. The documentation provided for today's meeting has helped identify a number of areas where  WT/TPR/M/216 
 Page 15 
 
 
  further improvements to New Zealand's policies and practices could be to the benefit of both New 
Zealand itself and all of us other WTO Members.  
83. We have submitted detailed qu estions on a number of measures and sectors and we thank 
New Zealand for its replies. Today, I would thus li ke to limit myself to four issues where we believe 
further efforts from New Zealand could significantly enhance trade:  
84. The first issue relates to the protection of geographical indications. I would like to highlight 
that New Zealand's legislation does not provide fo r additional protection for geographical indications 
for wines and spirits. The Geographical indicati ons Act of 1994 has been repealed while the 
Geographical indications (Wines and Spirits) Registra tion Act of 2006 has not yet come into force. In 
our view, this lack of protection is not in complia nce with Article 23 of the TRIPS Agreement. Today, 
we would very much appreciate New Zealand's clear indications on how it plans to overcome this 
shortcoming and to implement the outstanding le gislation to adequately protect geographical 
indications.  
85. My second point relates to agriculture. We note that state-trading arrangements have been 
maintained for exports of some agricultural products  and we are interested in the underlying reasons 
for maintaining those arrangements. Furthermore, we would encourage New Zealand to complete its 
notification obligations on all state-trading activities. 
86. Thirdly, I would like to raise some concerns  regarding SPS measures. Here, New Zealand 
should establish fair, non-discriminatory and transpar ent rules for agricultural imports, aligning its 
SPS measures with international guidelines. For example, through its bio-security policy, New 
Zealand has effectively restricted the importation of  most non-pasteurised cheese, fresh eggs and live 
poultry. In addition, stringent regulations impe de importing meat products . We acknowledge efforts 
made in some products, such as non-pasteurised cheese, and we thus hope that New Zealand will 
continue working in that direction. Furthermor e, we would like to encourage New Zealand to 
accelerate the process of developing import health standards.   
87. Last but not least, we very much welcome the fact that New Zealand has become an observer 
of the WTO plurilateral agreement on Government Procurement (GPA) since last December 2008. 
We encourage New Zealand to swiftly develop a gene ral legislation on public procurement, including 
guidelines for sub-central agencies. We hope that pursuing transparent, non-discriminatory and open 
government procurement will be one of the key obj ectives of New Zealand in the immediate future. 
KOREA 
88. New Zealand is a role model for all of us at the WTO.  Since the mid 1980s, New Zealand has 
successfully implemented major economic re-structu ring efforts while progressively liberalizing its 
economy; as such, its impressive track record in th e area of economic reform has now made it one of 
the more open economies of the world, and one whic h is "relatively well-positioned today to weather 
the impact of the global recession".  In this c ontext, my delegation approaches this TPR from the 
perspective of desiring to learn the New Zealand expe rience, not only its previous successes, but to be 
better acquainted with any plans it has set for the future.   
89. In terms of bilateral trade relations, Korea a nd New Zealand have enjoyed excellent relations 
throughout the years.  Bilateral trade figures are now close to the 2 billion dollars per year level, and 
we look forward to further growth in the coming years.   
90. Recently, with a view to further strengthening the existing ties, New Zealand and Korea have 
started negotiations on a comprehensive FTA which encompasses, among others, all areas of trade in 
goods, trade in services, investment, and intellectua l property.  Korea looks forward to the early WT/TPR/M/216 
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  conclusion of this FTA, which will not only contribu te to further cementing the existing ties between 
the two countries, but hopefully will also be usef ul in promoting the regional integration initiative 
underway in the Asia/Pacific region. 
91. Also, as strong believers in the principles and institutions of the multilateral trading system, 
both New Zealand and Korea have been strong supporte rs of its enhancement.  On this, I would like 
to note and extend our appreciation to New Zeala nd for sending us, in succession, highly capable 
negotiators in the field of Agriculture.  We have no doubt that under the guidance of the current Chair 
Ambassador Walker, we will achieve further progre ss culminating in the successful conclusion of the 
Doha Round. 
92. As I noted earlier, New Zealand maintains an open and transparent economy, as such, barriers 
against foreigners seem to be limited.  However, we have noted an interesting development in the area 
of FDI where in March, 2008 the New Zealand governme nt introduced a new measure to allow for an 
extra review process involving "strategically important  infra-structure on sensiti ve land”.  In light of 
the potential adverse effects this measure might enta il for FDI into New Zeal and, we would appreciate 
some clarifications on the purpose, guidelines employed, and some examples of its use. 
93. Also, we note that some of the privatization measures of the mid 1980s has witnessed a policy 
reversal which continues to this day. On this, I be lieve it might be helpful if New Zealand could share 
with the membership its experience: what propelled this reversal, and whether there are lessons that 
developing countries such as mine can learn from it. 
94. Lastly, we note with great interest the requi rement on the dominant local telecom operator 
(Telecom New Zealand) to "unbundle its local loop".  We would be interested to know whether this 
process has begun, and what is (or will be) the proce ss that has been formulated to do so.  A comment 
on the lessons learned thus far from this endeavor would be helpful, if possible.  
CHILE 
 
95. New Zealand and Chile are ne ighbours separated by a common border:  the South Pacific 
Ocean.  We have a number of ties, which may be determined by geographical isolation and the wide 
distance between political and economic centres:  these are what define a particular way of seeing the 
world and developing our societies.  It may therefore be easier to share common views with New Zealand on a variety of topics, and this  will further strengthen our relationship. 
96. The Secretariat's report speaks of general stab ility in New Zealand's economic, financial and 
trade conditions since the previous report (2003) .  In the macroeconomic sphere, New Zealand 
continues to set an example in maintaining a tight  monetary policy aimed at controlling inflation.  
Beyond the fluctuations typical of the current ec onomic crisis, we believe that the health of the 
economic and financial system remains sound.  Trade still represents almost 60 per cent of GDP, based in large part on a transparent and non-discrim inatory trade policy driven by a belief in the 
benefits of liberalization.  This is evidenced by  a major reduction of protective tariffs, advanced and 
simplified customs procedures, and the absence of  import restrictions, prohibitions and licensing 
requirements. 
97. In this context, it is logical for us to have shared views on a number of trade topics, ranging 
from the WTO Agreements (e.g. the Agreement on th e Application of Sanitary and Phytosanitary 
Measures (SPS) and the Agreement on Technical Barriers to Trade (TBT)) to the Doha Round 
negotiations.  We both highly value the multilateral tr ading system:  in particular, we are fighting for 
common objectives in Agriculture (we belong to the Cairns Group);  in services, where we are 
seeking higher levels of commitments on market access and national treatment and strong national 
regulatory regimes;  in fisheries subsidies, wher e our realities and experience have convinced us of  WT/TPR/M/216 
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  the need for strong disciplines prohibiting the granting of subsidies, which affect the sustainability of 
marine resources.  In intellectual property, we are seeking to facilitate the registration of geographical 
indications for wines and spirits.  Few WTO Memb ers are as motivated by systemic interests as 
New Zealand.  For example, the fact that New Zeal anders are preferred on WT O panels is not to be 
overlooked.  New Zealand actually occupies first pl ace in the number of panellists, with 16 of its 
nationals serving in this capacity. 
98. In our bilateral trade relationship, the entry into force of the Trans-Pacific Strategic Economic 
Partnership Agreement (P4) represen ts an important milestone in the strengthening of trade relations.  
The figures bear this out:  in 2007, the first year  of the Agreement, trade increased by 15.8 per cent 
over the previous year, reaching $70 million.  We be lieve that this figure will increase further over the 
coming years, based on the opportunities offered by the Ag reement.  In terms of air transport, it is also 
worth mentioning that Chile signed its first open skies agreement with New Zealand before 2000.  
This is an example of deregulation in the sector, in  that it includes full access to cabotage for the other 
country's providers. 
99. Lastly, in terms of investment, note should be taken of the share of New Zealand capital in 
Chile, in both the forestry and the dairy sectors. 
ECUADOR 
 
100. According to the Secretariat report, New Z ealand is among the more open economies in the 
world.  Judging by the steady growth of its econom y and the high living standards of its population, 
this opening up of trade has enabled New Zealand to achieve the desired results.  It should not be 
surprising, therefore, that New Zealand is a promot er of trade liberalization as a strategy for economic 
growth.  However, in contrast to what happens with other Members of this Organization, who are 
typically the greatest promoters of trade liberalizati on only in those sectors that are of benefit to them, 
New Zealand's rhetoric becomes more consistent  when its overall trade policies are analysed. 
101. This is evidenced by the low level of tariffs a pplied by New Zealand to agricultural products, 
the elimination of import licensing, the absence of  tariff quotas although its schedule of commitments 
allows it to apply them, and the low level of suppor t provided to its agricultural sector, which is the 
lowest of any country in the OECD.  Of course, there are areas in which New Zealand could go further, such as the reduction or elimination of tariff quotas imposed by some trading partners, as 
noted in the Secretariat report, and the consolida tion and transformation of its tariff structure into 
ad valorem  tariffs, as was required of countries which joined the WTO after the Uruguay Round.  
Additionally, we would urge New Zealand, in the ap plication of sanitary and phytosanitary standards, 
which the Secretariat report described as relativ ely strict, not to go beyond the recommendations of 
the international standard-setting organizations.  On this point in  particular, we have submitted 
questions to the delegation of New Zealand, and we  thank the delegation in advance for its answers. 
102. In the context of the current negotiations, we  cannot fail to recognize the important role 
played by New Zealand as coordinator of the "Friends  of Fish" group, of which Ecuador is a member, 
and its active role in the negotiations on rules for achieving the reduction or elimination of fisheries 
subsidies.  Furthermore, with regard to trade re lations between the two countries, although trade is 
still limited, the complementarity  of their economies offers opportunities worth exploring. 
103. In conclusion, we take this opportunity to wish Ambassador Walker every success in his 
difficult task as Chairperson of the Special Se ssion of the Committee on Agriculture.  We are 
confident that under his leadership and guidance - as during the terms of office of 
Ambassadors Groser and Falconer, who chaire d the Doha Round agriculture negotiations a 
professional and impartial manner - the vision of  development that should characterize these WT/TPR/M/216 
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  negotiations, and the clear mandates for the a doption of modalities for the Round, will not be 
forgotten. 
AUSTRALIA 
104. New Zealand is Australia’s sixth largest tradin g partner and Australia’s largest market for 
manufactured goods.  Australia is New Zealand’s largest export market (taking around 18% of NZ 
exports) and its greatest source of imports (accounting for around 23% of NZ imports) 
105. Our close bilateral economic and trade relati onship is underpinned by the Australia New 
Zealand Closer Economic Relations Trade Agre ement (ANZCERTA) of 1983 – among the world’s 
most open and extensive free trade agreements.  Un der this free trade agreement, Australia and New 
Zealand have developed the most diverse and comp rehensive economic relationship each has with any 
country.  Under the umbrella of ANZCERTA, more  than eighty government-to-government bilateral 
treaties, protocols and other arrangements of less- than-treaty status underpin the CER relationship - 
covering trade and the movement of people, avia tion, business law coordination, mutual recognition 
of goods and professions, taxation, health care, social security, food standards and government 
procurement.   
106. The trade and economic relationship conti nues to expand and deepen under both the 
ANZCERTA and the Single Economic Market (SEM ) agenda.  During their meeting on 2 March 
2009, the Australian and New Zealand Prime Ministers set out an agenda of action designed to bring 
the two economies more closely together.  The agenda  is designed in part to focus on committing to a 
harmonised business regulatory environment to reduce business costs and to simplify compliance 
procedures.  
107. As original Members of the WTO, New Z ealand and Australia share a long-standing 
commitment to promoting free trade, eliminating international trade barriers, and supporting global 
trade liberalisation – seeing these factors as essential to world economic growth and development.  
Australia welcomes New Zealand’s commitment to ope n, free trade and to the continued lowering of 
tariff barriers and simplification of its tariff re gime.  Australia notes that New Zealand’s import 
control and trade facilitation infrastructure is transp arent and administered in a predictable manner.  
Similarly, Australia is pleased that New Zealand c ontinues to operate an open services sector with low 
barriers to entry by third countries.  Australia also welcomes the continued efforts by the New 
Zealand Government to maintain streamlin ed transparent Customs procedures.   
108. Australia notes, too, that New Zealand places increasing priority on developing a 
comprehensive free trade agreement infrastructure wh ich, like Australia’s, is designed to compliment 
the multilateral trade relations regime overseen by th e WTO.  Australia values its partnership with 
New Zealand as a signatory to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and in the context of the evolut ion of the Trans Pacific Partnership.  
109. Australia particularly values New Zealand’s strong support of the WTO and its constructive 
role in promoting the importance of trade libera lisation including as a fellow Cairns Group member 
and in providing current and former Chairs of the Agriculture negotiations . 
110. In responding to the global economic crisis , concluding the Doha Round is one multilateral 
measure within our grasp and our best insurance against protectionism.  Concluding the Round would 
boost global economic confidence and help rekindle economic growth.  Australia looks forward to 
continuing to work closely with New Zealand, a nd other Members, to conclude the Doha Round as 
soon as possible.  
  WT/TPR/M/216 
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  SWITZERLAND 
111. This TPR takes place at a moment when it is obvi ous that we are all in the same boat facing 
an economic and financial hurricane probab ly followed by an economic crisis. 
112. After a period of dynamic econom ic growth built upon deep struct ural reforms and substantial 
trade liberalization, New Zealand, like many other countries, is badly affected by the present 
international economic and financia l crisis, which has lead to an unwinding of its large external 
imbalances, i.e., its subs tantial current account deficit and the high level of its external debt.  
113. New Zealand has been in recession since early  2008 as a result of weak export performance 
and less buoyant domestic demand, amid rising energy and raw material costs, while monetary policy had to be tightened markedly. Exports from New Zeal and’s agricultural sector are affected by  weaker 
external demand and the volatility of world prices. Exports of goods and services are expected to 
perform poorly, given the persistence of an unfavorable external economic climate.  
114. As to the bilateral economic  relations between New Zeal and and Switzerland, we note 
basically a positive trend, with a fairly regular in crease in the volume of trade and investment since 
2000. After an increase of 18.8% to CHF 321 million in  2007, the growth of two-way trade abated in 
2008, with a progression of only 1.4%  to CHF 326 million in 2008. Last year, Swiss exports reached 
CHF 224.5 million and New Zealand’s exports to Sw itzerland amounted to CHF 101.4 million. While 
we are exporting mainly pharmaceuticals, machines and instruments, New Zealand brings many high-
quality agricultural products to Switzerland,  first of all its world-famous lamb. 
115. New Zealand is an attractive location for Swi ss investment. 2007 saw a new record of Swiss 
direct investment to New Zealand with a total of  CHF 348 million. According to our statistics, Swiss 
companies employ now more than 4’500 people in New Zealand. 
116. Switzerland is observing New Zealand’s as well as Australia’s experience with bilateral Free 
Trade Agreements (FTA) and its pro-active po licy to turn these into regional plurilateral 
arrangements. The last example of such a development is the FTA signed by ASEAN, Australia and New Zealand. Like many countries outside the Asia-O ceania Region, we are l ooking with interest at 
New Zealand’s experience with “open regionalism”. 
117. New Zealand, like Switzerland, is both an activ e Member of the WTO and one of the most 
open economies in the world. As such it is also very much attached to an open and rules-based 
multilateral trading system. We look forward to pu rsue our fruitful cooperation notably in NAMA, 
services, trade facilitation, trade and environment and in the “small fish” initiative. Regarding 
government procurement, we would like to underl ine that Switzerland would very much welcome 
New Zealand joining the GPA in the future, given the importance the New Zealand authorities attach 
to transparency, economic efficiency and competition.  
HONG KONG, CHINA 
118. New Zealand and Hong Kong, China have always maintained very good trade relations.  This 
is evidenced by an average annual growth of 7% in our bilateral trade over the past five years.  Being 
both small and externally-oriented economies, we also share a strong belief in market openness 
supported by sound rules. 
119. We are therefore highly appreciative of New Zealand’s determination to pursue a liberal trade 
policy despite the current global economic difficulti es arising from the financial crisis.  We look 
forward to work with New Zealand in the WTO, A PEC and other fora to continue to promote the 
value and general benefits of international trad e including seeking an early conclusion of the DDA. WT/TPR/M/216 
Page 20  
 
  120. We share the remark of the discussant just now  that we do not come from an economy with 
strong agricultural background. We nevertheless note that New Zealand has relatively limited 
government intervention and support measures in the sector of agriculture.  The average applied MFN 
tariff in agriculture declined from 2.1% in 2002 to 1.8% in 2008.  We commend New Zealand for 
maintaining a liberal regime in agriculture, as well as providing very capable chairmanship in taking 
forward the agriculture negotiations under the DDA. 
121. On tariffs we commend New Zealand for its contin ued efforts in liberalizing its tariff regime.  
We note with appreciation that the average applie d MFN tariff rate in New Zealand has dropped from 
4.1% in 2002 to 2.5% in 2008 and this is expected to  lower further to the rate of 2.4% from July 2009.  
At present, more than half of the tariff lines of New Zealand are no subject to import duty.  
122. At the same time we note that although over 99% of the tariff lines are bound, there is an 
average gap of 9.1% between the applied and bound MFN rates.  Such a gap, though small imparts a 
certain degree of unpredictability to the tariff re gime.  We look forward to seeing improvements in 
this area. 
123. In services we share a common goal with New Zealand in pursuing progressive liberalization 
and in striving to bring about a successful outco me in the services pillar of the DDA negotiations. 
124. New Zealand’s active and constructive particip ation in both the market access and rule 
making tracks of the services negotiations including in the area of domestic regulation is highly 
commendable.  We look forward to continuing our close cooperation with New Zealand with a view 
to bringing the services negotiations to a success ful conclusion.  On specific measures, as the 
Secretariat Report has noted, we look forward to see ing more facilitated rules for foreign investment 
in certain services sectors such as telecommunications. 
125. Turning to trade facilitation, we fully shar e New Zealand’s view on the significance and 
benefits of establishing a WTO Agreement on Trad e Facilitation.  Import and export formalities and 
requirements should not be used as a means to impo se barriers to trade.  Equally committed to the 
trade facilitation negotiations, we look forward to working more closely with New Zealand with a 
view to bringing the negotiations to a success. 
126. On conformity assessment and accreditations, we note that New Zealand has actively engaged 
in the development of mutual recognition agre ements with other economies and regions.  We 
commend New Zealand’s efforts and c onsider that such initiatives shoul d help facilitate the flow of 
international trade. 
127. We note, however, that New Zealand has devel oped nearly 3,000 standards, of which only 
some 43% were adopted directly from internat ional standards.  The remainders are domestic 
initiatives or joint standards with Australia.  We  encourage New Zealand to harmonize its national 
standards with international ones so as to facilitate the free flow of goods. 
128. We appreciate New Zealand, as an economy with global trading interests, attaches much 
importance to a strong, transparent and rules-based global trading system.  We hold the same attitude 
and are very appreciative of New Zealand’s stro ng commitment to strengthening the multilateral 
trading system.  We commend their active particip ation in the DDA negotiations.  We hope all their 
hard work and efforts will help contribute to wards an early conclusion of the Doha Round. 
 
  WT/TPR/M/216 
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  COLOMBIA 
129. New Zealand remains one of the more open ec onomies in the world.  Its economic policies 
have enabled it to sustain growth during the peri od under review.  International trade plays an 
important role in its economy. 
130. While New Zealand is a major agricultural prod ucer and exporter, the average tariff in the 
agricultural sector is low, although slightly higher for textiles, footwear and leather goods. 
131. New Zealand's regulatory policy is characterized by a system of clear and effective rules 
aimed at protecting the health and lives of people and animals and preserving plants in accordance with WTO requirements and obligations. 
132. New Zealand is notable for its financial fre edom, its provisions on competition and, in 
general, its freedom of trade. 
133. Overall trade between Colombia and New Zeala nd is not very significant and has tended to 
fluctuate in recent years.  Nevertheless, it is a matter  of concern to our country that in the last three 
years, its trade balance vis-à-vis New Ze aland has been increasingly in deficit. 
134. Therefore, as a way of balancing the bilateral relations, New Zealand has been encouraged to 
invest in Colombia in order to take advantage of our expanded market, the preferential tariffs 
achieved through various trade agreements, and the tax incentives and laws facilitating foreign direct 
investment in Colombia. 
135. New Zealand is one of the exemplary Members of this Organization.  At this juncture it will 
face major challenges in sustaining its economic grow th and the well-being of its people.  We trust 
that current economic developments will not result in the imposition of trade restrictions by the 
New Zealand authorities, and we encourage them to  continue the good performance to which we have 
become accustomed. 
MALAYSIA ON BEHALF OF ASEAN 
136. ASEAN has an excellent economic and trade rela tions with New Zealand, both bilaterally and 
regionally.  On the regional front, we have held regular dialogue under the East Asia Summit and our 
Trade Ministers have signed the ASEAN-Australia-N ew Zealand FTA Agreement in February this 
year, which was the first region to region free trade agreement for ASEAN, Australia and New Zealand and remains to be the most ambitious and comprehensive to date. 
137. Meanwhile, on a bilateral basis, New Zealand h as entered into closer economic partnerships 
with Singapore and Thailand, wh ilst Brunei Darussalam, Singapore and New Zealand are parties to 
the Trans-Pacific Strategic Economic Partnership Ag reement (P4).  In addition to this, New Zealand 
has just concluded FTA with Malaysia on 30 May 20 09, and Viet Nam has also expressed its interest 
in joining the P4. 
138. I’d therefore like to reiterate our view that our regional engagement is an integral part of our 
response to the global financial crisis, and this, t ogether with the other ec onomic partnerships we’ve 
fostered bilaterally serve as building blocks to wards a stronger multilateral trading system and will 
complement the successful outcome of the DDA in due course. 
139. We would also like to express our appreciation to New Zealand for her progressive 
contributions to Aid for Trade and the developm ent of trade-related capacities, allowing the WT/TPR/M/216 
Page 22  
 
  developing and least developed countries including t hose in ASEAN to enjoy the benefits from the 
multilateral trading system. 
140. We also appreciate the granting of duty free entry to goods originating from LDCs and we 
welcome New Zealand’s support in the accession pr ocess of future members of the WTO including 
that of Lao PDR. 
141. Since the last Trade Policy Review, I note the report by the Secretariat that New Zealand 
remains to be among the more open economies  of the world and the framework for the 
implementation of trade policy has remained la rgely unchanged, where she has maintained her 
support for the strengthening and liberalization of the multilateral trading system and the successful 
conclusion of the Doha Round negotiations. 
142. ASEAN also notes positively, that New Zeala nd’s average applied MFN tariff has dropped 
from 4.1% in 2002 to 2.5% in 2008, and is expected to  further drop to 2.4% by July this year.  Peak 
ad valorem  rates have also dropped considerably and w ill be 10% by July, with relatively low rates 
applied to agricultural products. 
143. However, despite tariff decreases undertaken sin ce 2003, significantly higher rates remain to 
be applied to textiles and clothi ng with more significant tariff escalation in the sector, which is a 
source of concern for ASEAN as it could impede th e ability of developing countries’ to export these 
products where preferential duty free access is not available. 
144. With regards to SPS standards, ASEAN would like to reiterate once more, our concern on 
New Zealand’s “zero risk” policy, which effectiv ely bans exports on unpasteurized dairy products, 
eggs and poultry, and would like to encourage New Zealand to look into these again.  However, we 
remain encouraged that the Ministry of Agriculture  and Forestry Biosecurity of New Zealand are open 
to working together with requesting countries in  establishing country and/or commodity specific 
import health standards to mitigate the import risks fo r that product and certainly hope that this will 
have a facilitating effect on the export of  agricultural produce into New Zealand. 
145. We note that some Members of ASEAN have been subject to initiations on anti-dumping 
investigations and several anti-dumping measures have been imposed.  While these have been 
conducted in line with WTO rules, it would better ser ve newer users of the AD instrument in ASEAN 
if New Zealand, as a very experienced user, could make disclosures in a more transparent manner at 
various stages of the investigation. 
146. New Zealand has always been a strong supporte r of the multilateral trading system and has 
actively participated in all areas of the DDA negotia tions, most notably in the chairing of the Special 
Session on the Committee of Agriculture, the S ub-Committee on Cotton and the Working Party on 
GATS rules.  We highly appreciate New Zealand’s efforts in this regard. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
147. In its own report, the New Zealand government em phasizes, and I quote, that:  “Trade is an 
integral component of the New Zealand economy.  In the period under revi ew, New Zealand’s total 
trade increased by 20.66%, with total imports in creasing by 32.25%”, and says further that:  “As a 
country with strong reliance on export earnings, a fi rm supporter 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”.  It goes without saying, therefore, that international trade plays a pivotal role in New Zealand’s economic development, and I 
would like to take this opportunity to congratul ate New Zealand on its overall economic and trade 
success, as rightly highlighted in the Secretariat’s report as well.  WT/TPR/M/216 
 Page 23 
 
 
  148. We have enjoyed for some time now a very close bilateral trading relationship with New 
Zealand.  In the period under review, the volume of two-way trade between us has grown by 178%, 
within which our exports to New Zealand were up by 215% and our imports from New Zealand increased by 149%.  We import from New Zealand ma inly agriculture-related products, such as beef, 
cherries, wood pulp and cheese.  Our main exports  to New Zealand are industrial goods, such as 
machine accessories, stainless steel, polyesters and chem icals – which means, I am pleased to say, that 
the type of goods we trade between us are quite complementary. 
149. In line with its general trade policy, New Z ealand is a very active participant in the DDA 
negotiations.  While we may have our differences on some important negotiating fronts, one view we 
certainly do share with New Zealand is that furt her strengthening of the WTO, especially through 
early completion of the Doha Round, is a key com ponent in the mix of effective responses to the 
current global financial crisis.  Therefore, we hope to  maintain a coordinated effort on this front in the 
future. 
150. My delegation has already put a number of writte n questions to New Zealand in advance, on 
various aspects of its trade policy, such as investme nt, maritime transport, education services, energy 
distribution and electricity regulations, privatizati on of state-owned enterprises, customs procedures, 
government procurement, and enlargement of the P4 agreements.  We thank New Zealand for its 
replies to our questions, which we have now received. 
CANADA 
151. Linked by flourishing trade and investment pr ogrammes, Canada and New Zealand maintain 
valuable trade relations.  In 2008, Canadian e xports to New Zealand came to US$430.2 million, 
representing an increase of 40.2 per cent in US dolla rs compared to 2003, the year of the previous 
review of New Zealand's trade policy.  Since th en, Canadian imports of goods from New Zealand 
have increased slightly, to a total of US$449.4 m illion.  During this period, imports of wine from 
New Zealand have quadrupled, while there has b een a significant rise in Canadian exports to 
New Zealand of potassium chloride, sulphur and intermediate aircraft. 
152. At the time of the New Zealand's previous Tr ade Policy Review, Canada was impressed by 
the country's trade liberalization programme and its  overall economic performan ce.  Six years later, 
Canada again congratulates New Zealand on its effo rts to remain one of the more open economies in 
the world. 
153. Canada would like to acknowledge the many proactive measures New Zealand has taken to 
simplify its tax structure, strengthen its regulatory management system and remove barriers to trade 
and investment.  In particular, we note that since its last review in 2003 New Zealand has decreased 
its average MFN applied tariff rate to 2.4%, one of  the lowest MFN rates in the OECD, and has been 
recognized by the OECD, and has been recognized by the OECD and World Bank for the ease of compliance of its tax system. 
154. Canada deeply values New Zealand’s partnership in achieving similar goals and interests in a 
range of multilateral fora, including the WTO and A PEC.  Canada particularly appreciates the long 
and fruitful relationship we have ha d with New Zealand, working with them in the Cairns Group since 
its inception more than 20 years ago.  Canada and New Zealand share a common commitment to the strengthening and liberalization of the multilateral trading system and for a successful conclusion of 
the Doha Round.  Canada looks forward to continued collaborati on with New Zealand as Members 
move forward to conclude the Round. 
155. New Zealand has done well in complementing its  wider trade strategy with an ambitious 
agenda of bilateral trade agreements with nations that include China, Australia, and Thailand.  Also WT/TPR/M/216 
Page 24  
 
  noteworthy is New Zealand’s environmental and so cial responsibility when formulating its trade 
policy regimes as illustrated by its Economic Tran sformation Agenda, established in 2006, which 
focuses on raising New Zealand’s productivity in an environmentally sustainable way. 
156. Canada commends New Zealand on the high prio rity it attaches to transparency and to 
maintaining strong domestic regulatory regimes.  Ne w Zealand has an excellent record of meeting 
WTO notification requirements. 
157. Canada also applauds New Zealand on its ple dge, along with other WTO Members, to avoid 
protectionism and on its prudent monetary polic ies and sound economic ins titutions-frameworks that 
will undoubtedly help New Zealand weather the economic crisis.  Commendable also are the 
initiatives New Zealand has taken to ensure con tinued confidence in the banking sector, including 
new measures to assist small and medium-sized businesses. 
158. Canada would like to encourage New Zeala nd to continue its efforts in improving 
productivity levels and strengthening the internatio nal competitiveness of New Zealand firms.  We 
would also suggest New Zealand promote foreign di rect investment and maintain open markets to 
combat the shortcomings of being a small si zed economy and thereby facilitating international 
connections and innovation. 
JAPAN 
159. Japan notes with pleasure that the prudent macroeconomic management of New Zealand, 
coupled with its continued liberalization and restru cturing, facilitated its real GDP growth, which 
averaged a steady 3.2% annually between 2003/ 04 and 2007/08.  The Japanese Government 
recognizes that we have not heard any serious co mplaints from Japanese companies operating in New 
Zealand.  New Zealand maintains an open framewo rk for trade and foreign investment.  It, in 
particular, recognizes the contribution foreign investme nt makes to the economy.  It is Japan’s hope 
that New Zealand will continue to formulate a nd implement sound trade and investment policies. 
160. In this context, Japan is pleased to note that New Zealand’s Government’s report in which it 
expresses its intention to strongly support interna tional efforts, including through the WTO, to 
discourage protectionist measures which impact trad e flows.  New Zealand is committed to achieving 
further trade liberalization through th e WTO multilateral rules-bases system. 
161. Japan notes that Finance Minister made an a nnouncement this March that the Government of 
New Zealand would consider a simplification of the regulations on foreign investment, as well as 
amendment of the current Overseas Investment Ac t.  The Government of New Zealand rightly 
recognizes that overseas investment can play an importa nt role in economic recovery and job creation.  
The Secretariat Reports points out that in 2007, New Zealand was recognized by the World Bank as 
the second best place in the world for overall ease of doing business.  Japan hopes that this 
amendment of the Act will further promote and encour age the flow of investment into New Zealand, 
through eliminating unnecessary barriers to FDI from abroad and providing more clarity, certainty, 
and predictability for investors. 
162. With regard to the WTO and the DDA, Japan a ppreciates that New Zealand has maintained 
its support for, and commitment to, the strengtheni ng and liberalization of the multilateral trading 
system, and the successful conclusion of the DDA.  We also very much appreciate Ambassador 
Walker has assumed the challenging task as agricultur e chair and will continue to work closely with 
the chair and the WTO Members, including New Zealand. 
  WT/TPR/M/216 
 Page 25 
 
 
  UNITED STATES 
163. The United States and New Zealand share common elements of history and culture and a 
commitment to democratic principles.  Our official s regularly consult with each other on issues of 
mutual importance and both governments acknowle dge the value of continued close political, 
economic, and social ties.  New Zealand has worked closely with  the United States in various 
multilateral fora, including in the WTO, APEC to promote open markets.  We, of course, look 
forward to continuing our time-honour ed cooperation in this regard. 
164. New Zealand is among the most open economies in  the world.  It has low tariff rates, a 
transparent regulatory system, an efficient cust oms system and few barriers to exports.  This 
liberalization contributed to steady real GDP grow th averaging 3.2% between 2003 and 2008 and an 
increase in exports and imports of 21 and 32% r espectively, during the period of the review. 
165. In 2008, total U.S.-New Zealand two-way trad e in goods was US$5.8 billion.  U.S. goods 
exports to New Zealand in 2008 were US$2.6 billi on, up 70.5% from 1994 (the year prior to the 
conclusion of the Uruguay Round).  U.S. goods impor ts from New Zealand totalled US$3.2 billion in 
2008, up 123% over the same 14 years.  According to th e latest data available, U.S. trade in services 
with New Zealand (exports and impor ts) totalled US$3.2 billion in 2007. 
166. Our bilateral trade in agriculture is worth menti oning.  U.S. exports of agricultural products to 
New Zealand totalled US$220 million in 2008.  By c ontrast, U.S. imports of agricultural products 
from New Zealand totalled US$1.8 billion in 2008, making New Zealand our 14th largest supplier of 
agricultural imports.  Leading categories included red meats and dairy products. 
167. New Zealand has negotiated several bilateral and regional trade agreements during this 
review period, seeking agreements that complement and reinforce the multilateral trading system.  
New Zealand’s efforts to negotiate a high-standard  regional trade agreement through the Trans-Pacific 
Strategic Economic Partnership are par ticularly noteworthy in this regard. 
168. We commend New Zealand for its steadfast s upport for and commitment to the multilateral 
trading system and to global trade liberalization.   As the government’s report states, New Zealand 
highest trade policy priority remains the earliest possible conclusion of the Doha Round.  
Furthermore, New Zealand’s impressive liberaliza tion record and its effective advocacy of the 
importance of an open, rules-based trading system for sustained growth has given the government a strong and resonant voice in the WTO.  New Zealan d has made detailed and constructive proposals in 
difficult areas, including agriculture, to find a way forward successfully to conclude the Doha 
negotiations.  The government has lent the WTO three of its gifted leaders to chair the Doha Round’s 
thorny agriculture negotiations.  We take this opp ortunity to thank once again Ambassador Falconer 
for his unfailing dedication to the task at hand, and we look forward to working with Crawford’s 
successor, David Walker, to bring the agriculture  negotiations to their satisfactory conclusion. 
169. We also applaud New Zealand’s leadership in pushing for a high ambition fisheries subsidies 
agreement and its tireless work to coordinate the effort s of the “Friends of Fish”.  We look forward to 
working closely with New Zealand to secure an agreement that will truly address the problems of 
global overcapacity and overfishing. 
170. The United States appreciates New Zealand’s decision to become an observer to the 
Government Procurement Agreement in December 2008.  We would urge the government to being 
New Zealand’s accession to the GPA as soon as possible. 
171. The United States welcomed the opportunity to submit written questions to the delegation of 
New Zealand on a number of issues.  We thank the de legation of New Zealand for its attention to our WT/TPR/M/216 
Page 26  
 
  questions and will examine the written responses with great interest.  Despite New Zealand’s 
impressive record, some areas for improvement remain , which we would like to underscore with our 
remaining time. 
172. We continue to have concerns about New Zealand’s stringent SPS regime, which affects 
virtually all imported animal a nd plan products.  New Zealand recently concluded reviews of 
provisions affecting domestic and im ported foods.  According to the Secretariat report, “the outcomes 
of the reviews will be developed into legislation that will put in place a food regulatory program for 
the whole domestic food industry that takes a ri sk-based approach, provides for the comprehensive 
and targeted regulation of imported food, and ensu res the delivery of safe and “suitable” food in New 
Zealand”.  We are interested to learn what these reviews concluded and why imported food is targeted 
for comprehensive and targeted regulation.  As it moves forward, we would urge New Zealand to 
ensure that the food regulatory program it desi gns will take full account of New Zealand’s WTO 
obligations so that trade will be allowed to flow. 
173. We would also like to flag questions regarding New Zealand’s IPR regime.  In particular, we 
have specific questions in the pa tent and industrial design areas, am ong others, and we look forward 
to considering your responses. 
174. Finally, we would like to highlight a sectoral i ssue of concern regarding New Zealand.  In the 
telecommunications sector, mobile termination rates remain relatively high, despite deregulation, and 
the cost of mobile usage remains higher than the OECD average.  We would welcome information on 
the government’s current plan s for addressing these issues. 
175. In sum, New Zealand’s commitment to advanci ng trade liberalization and its attentiveness to 
the economic challenges ahead have done much to ensu re its future economic growth.  Its program of 
unilateral tariff reduction, its efforts to simplify its tariff structure, and its efforts to strengthen New 
Zealand’s copyright and trademarks laws should he lp bolster its future competitiveness and economic 
growth potential. 
INDIA 
176. Over the last two decades the government h as transformed New Zealand from an agrarian 
economy dependent on concessionary British market acce ss to a more industrialized, market-oriented 
economy that can compete globally.  This dynamic growth has boosted real incomes, broadened and 
deepens the technological capabilities of the industria l sector.  New Zealand economy is also focused 
on tourism, wine, fashion and primary industries. 
177. A striking feature of New Zealand economy is its generally open economic environment and 
with few low subsidies in agriculture sector.  Desp ite its small size New Zealand is the second largest 
exporter of dairy products, and th at too without offering any gener ous export subsidies reintroduced 
recently by some Members. 
178. It is learnt that according to the existing guide lines in telecom sector a foreign investor should 
not own more than a 10% stake without the government ’s approval, and that half of directors should 
be New Zealand citizens.  We find these astonishi ng as New Zealand is a developed and free market 
economy while these kinds of conditions are mostly  found in third world countries.  It may be 
relevant to recall words of former Communications  Minister, in March 2007 he said and I quote, “In 
general there is a significant gap between New Zeal and’s pricing performance and that of countries in 
the top rankings of the OECD.  We are working hard and fast to ensure Kiwis get the internationally 
competitive services we need for our economic transformation.”  We hope New Zealand will soon 
take steps to open up its Services sector particularly like aviation and telecom to bring in efficiency, 
cost effectiveness and benefit consumers.  WT/TPR/M/216 
 Page 27 
 
 
  179. We have noted that the May 2009 New Zeala nd budget aims to:  helping New Zealanders 
through the recession and suppor ting jobs;  lifting productivity and raising New Zealand’s 
international competitiveness;  and taking step s to keep government debt under control. 
180. Early this week, a report by Business New Zealand  said – there was a small decrease in 
confidence regarding the economy over the coming year .  Since entering in recession in June last 
year, the treasury is expecting the economy to st ay in recession until late 2009.  The decline in 
consumer spending is set to continue and due to falling house prices and rising unemployment. 
181. It would be interesting to hear from the Ne w Zealand delegation, the steps Government 
proposes to take to tackle these two main challenges. 
182. New Zealand’s contribution to the WTO and esp ecially agriculture negotiators for Doha 
Round is quite significant, unique and widely appreciated.  The Kiwis contributed a DG in Mike 
More.  This is a clear recognition of skills, cap abilities and integrity enjoyed by New Zealand trade 
diplomats in complex negotiations. 
183. India and New Zealand share many commona lities including the la nguage, Commonwealth, 
parliamentary democracy.  Indian community in New Zealand has a long history of arrival and is 
estimated to be over 120,000.  In India, New Zeal and is known for its famous beekeeper;  Sir Edmund 
Hillary, conqueror of Everest with Tenzing Norgay and later its High Commissioner to India, wools, 
Kiwis – the cricketers, and not just the fruit;  picturesque locales for Hollywood movies and 
education.  India clinched its first test series wi n in New Zealand in 41 years in early this year. 
184. India-New Zealand relations are growing a nd expanding.  The New Zealand Governor 
General paid a state visit to India last year and we hope the trend of exchange of high level visits will 
accelerate in the coming years. 
185. Our two countries have completed a joint study to  determine the feasibility of a bilateral FTA, 
the negotiations will commence once both countries finalise details.  India-New Zealand trade is 
around US$500 million.  Indian export items include  textiles, diamonds, jewellery, footwear and 
leather products and imports mainly consist of coal, wool, fruits, dairy products, wines.    
NIGERIA 
186. Nigeria is pleased to note from Secretariat Re port that New Zealand has remained among the 
more open economies in the world since its last TPR in 2003.  Prudent macroeconomic policies, 
together with liberalisation and restructuring have  contributed to steady real GDP growth, averaging 
3.2 per cent between 2003/2004 and 2007/2008.  The ma in source of growth is domestic consumption 
while the unemployment rate has remained low.  However, the Secretariat Report has further noted 
that the GDP growth rate is expected to slow down significantly in 2008/2009, owing to a recession in 
the first three-quarters of the current fiscal year.  This trend is consistent with the IMF forecasts of declining GDP growth rate in 2005 and 2006.  Taking  into account the prevailing global financial and 
economic crisis, Nigeria like other delegations is interested to know how New Zealand intends to 
respond to these developments, more so as an improve ment in the global economic situation is not yet 
in sight. 
187. Nigeria is also happy to note from the Secret ariat Report that New Zealand, as an original 
Member of the WTO, has maintained its s upport and commitment to the strengthening and 
liberalisation of the multilateral trading system.  In that regard, while we generally commend the 
active participation of New Zealand in the Doha  Round negotiations, we would like to also in 
particular, acknowledge the valuable  contributions that have been made by Ambassadors Tim Grosser 
and Crawford Falconer in the Agriculture negotia tions.  We appreciate their objective and fair WT/TPR/M/216 
Page 28  
 
  approach in the continued efforts to reform inte rnational trade in agriculture; and we pledge our 
support and commitment to working closely with  Ambassador Walker as a worthy successor.  
188. Nigeria, however, hopes that the use of prefer ential trade agreements by New Zealand will 
not obviate its support and commitment to strengt hening the multilateral trading system.  Although 
the use of PTAs is considered as complementary to the wider trade strategy of creating new trade 
opportunities and improving market access in key market s, we are concerned that the elimination of 
unilateral tariff preferences as well as the erosion of preferences due to MFN tariff reductions are capable of negatively impacting on trade with LDCs and poor devel oping countries.  We therefore ask 
if New Zealand have, or is considering putting in place programmes that would assist this vulnerable 
segment of the membership in mitigating any trade losses that they may experi ence as a result of these 
measures. 
189. During the period under review, Intellectual Prope rty Rights protection in New Zealand has 
been strengthened with legislative amendments in  the areas of trademarks and copyright, while 
implementation in the area of geogr aphical indications is being delayed.  It would, therefore, be 
interesting to know the reason behind the delay in the implementation of geographical indications. 
190. At the bilateral level, Nigeria’s relations w ith New Zealand have b een generally warm, but 
also thin.  Nigeria is New Zeala nd’s fourth largest export market in Africa, outside South Africa, 
Algeria and Egypt.  However, apart from petroleum,  Nigeria exports very little to New Zealand while 
malt extract, and milk and cream constitute New Zealand’s major exports to Nigeria.  This 
development could be a result of several factors.  Firstly, New Zealand is accredited to only 13 African countries; with only two diplomatic missions  in Pretoria and Cairo.  The New Zealand High 
Commission in London is responsible for relations  with Nigeria while the Embassies in Paris and 
Madrid are accredited to Algeria and Morocco, respectively.   
191. Secondly, and as has been clearly stated by Ne w Zealand’s Ministry of Foreign Affairs and 
Trade, the country’s “official relations with sub-Saharan Africa are, in the main, with the 
Commonwealth countries of southern and eastern Africa”.  Nigeria would encourage New Zealand to 
reconsider its relations with Africa, taking into account the fact in today’s dynamic global economic 
environment, foreign policy priorities need also to be anchored on trade and economic considerations.  
While we commend New Zealand for providing Aid for Trade in such areas as trade-related capacity 
building and trade facilitation; supply-side constrai nts issues; as well as support for trade policy and 
regulatory capacity building, we still wonder whether th is situation is responsible for the focus of the 
New Zealand Agency for International Developmen t (NZAID) on two regions, namely, Asia and the 
Pacific.   
192. A third factor that is also worthy of note is  distance.  In that regard, the poor trade and 
economic relations betwee n New Zealand and Africa may, perhaps, just be a good example of the 
“gravity equation” in internationa l economic literature, which analyses the impact of distance on trade 
flows on the thesis that “the volume of trade be tween two countries increases with size of their 
economies and decreases with  the distance that separates them”.  W ith the increased level of unilateral 
liberalisation in Africa coupled with declining tran sportation costs, Nigeria would like to hear how 
New Zealand intends to address this concern. 
EL SALVADOR 
193. According to the detailed report by the Secr etariat, since the previous review of 
New Zealand's trade policy in 2003 the country is still one of the more open economies in the world. 
194. As indicated in the Secretariat report, New Z ealand's macroeconomic policies, described as 
"prudent", together with liberalization and restru cturing, contributed to steady real GDP growth  WT/TPR/M/216 
 Page 29 
 
 
  averaging 3.2 per cent between the date of the country 's previous review and 20 08, mainly attributable 
to growth in domestic consumption and a fall in the unemployment rate to 3.7 per cent. 
195. New Zealand has one of the worlds most attr active economies for business, due in large part 
to its openness to the world.  As noted, it prom otes transparency at the national level, thereby 
contributing to its objective, i.e. trade that  is free and open for both goods and services. 
196. As regards its trade policy regime, it has a tr ansparent regulatory framework, which includes 
its system of extensive public consultation, ther eby maintaining its support for and commitment to 
strengthening and liberalizing the multilateral trading system in order to achieve a successful outcome 
to the Doha Round negotiations. 
197. As regards the WTO trade negotiations, New Z ealand participates actively in the various 
negotiating areas of the Doha Development Agenda , occupying the Chairs of the Committees on 
Agriculture and on Market Access, among others , and has made several proposals in the ongoing 
negotiations, particularly on Agriculture, non-agricu ltural products, the strengthening of trade rules, 
and implementation of, inter alia , the TBT, SPS and TRIPS Agreements. 
198. Importantly, in the context of the above-men tioned discussions, New Zealand has adopted a 
constructive and respectful stance with regard to the various positions of Members. 
199. In the WTO negotiations concerning intellectual property, New Zealand takes an active part 
in discussions within the TRIPS Council, recognizi ng the importance of the development dimension 
and the role of intellectual property protection. 
200. Taking the view that intellectual property bene fits and promotes a favourable environment for 
development and fosters strengthening in areas such as innovation and protection of Members' 
intangible assets, New Zealand has prompted ma jor initiatives, such as negotiations for the 
establishment of a multilateral system for notifying and registering geographical indications for wines 
and spirits, a system which El Salvador particul arly supports because it does not impose excessive 
burdens on Members and provides special and differe ntial treatment for developing country Members 
and LDCs. 
HONDURAS 
 
201. We are pleased to note from the Secretariat's report that New Zealand remains one of the 
more open economies in the world and that its real  GDP has maintained a steady growth rate of 
3.2 per cent. 
202. At the multilateral level, New Zealand, which is a founding Member of the WTO, grants at 
least MFN treatment to all its trading partners.  In this sense, it is very gratifying to note that 
New Zealand maintains its support and commitment to strengthening and libe ralizing the multilateral 
trading system and achieving a successful outcome to the Doha Round. 
203. We also highlight the fact that New Zealand a ttaches great importance to the establishment of 
easily accessible and transparent laws, and that many of  them can be found online.  For this reason, it 
is among the leading economies in the world in term s of the quality of its regulatory regimes and 
institutions. 
204. New Zealand's main trade policy instrument is its tariff, and it has made improvements to 
simplify its tariff structure.  Its customs and trade facilitation procedures are among the most 
advanced in the world and are a means of main taining its economy's commitment to free and open 
trade. WT/TPR/M/216 
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  205. New Zealand has a strong economy and we hope th at it can successfully meet the challenge 
of the current crisis. 
SINGAPORE 
206. New Zealand and Singapore share longstanding and good bilateral econo mic relations.  The 
Agreement between New Zealand and Singapore on  a Closer Economic Partnership (ANZSCEP), 
which was signed and implemented in 2001, was Si ngapore’s first ever bilateral FTA with any 
country and a testimony of the significance of the economic relations between our two countries.  In the last eight years, our bilateral FTA has helped  pave the way for increased trade and investment 
flows between the two countries, and was hailed as an integral part of our economic relations. 
207. In terms of trade, total trade amounted to US $2.6 billion in 2008, a near four-fold increase 
from US$0.7 billion in 2001.  In 2008, Singapore was New Zealand’s 5
th largest partner globally.  In 
the area of investment flows, the number of New Zealand companies incorporated in Singapore had 
increased more than four-fold since 2001, to more th an 440 companies as of last year.  Collectively, 
these New Zealand companies had invested more than US$1.9 billion in Singapore, including well-
known global companies such as Wellington Drive Technologies, Fonterra and Beca Carter.  Not only 
does Singapore provide a market for these companie s, it is often a springboard to other Asian and 
ASEAN markets.  Correspondingly, just as we see an  enlarged Kiwi footprint in Singapore, Singapore 
companies are excited by the business opportunities and have invested substantially in New Zealand.  
In fact, Singapore was ranked as one of New Zealand’s top 10 investors for the past three years, with more than US$6 billion worth of investments in sect ors such as real estate, hospitality and retailing. 
208. The signing of the ASEAN-Australia-New Z ealand Free Trade Agreement (AANZFTA) in 
February this year marks another milestone in New Zealand’s relationship with Singapore and with 
ASEAN as a whole.  Indeed, Singapore shares New Zealand’s belief that plurilateral FTAs can create new trade opportunities and improve access for th e exports of goods and services to member 
countries’ markets.  The AANZFTA Agreement could be a key catalyst for enhanced and accelerated 
regional integration – not only in East Asia but the Asia Pacific region as well. 
209. As members of the Trans-Pacific Strategic Economic Partnership (or TPP), both New Zealand 
and Singapore are also actively pur suing the expansion of the P4 with interested APEC member 
economies like the U.S., Australia, Peru and Viet Nam.  This would be a first step in the grand vision 
for wider Asia-Pacific economic integration, including the creation of a possible Free Trade Area of the Asia-Pacific.  These integration efforts serve as effective building blocks towards multilateralism. 
210. The WTO Secretariat Report noted that “New  Zealand has remained among the more open 
economies in the world” and its “economic funda mentals remain sound”.  Nonetheless, as with 
Singapore, there is room to build on these fundame ntals.  As the WTO Secretariat Report notes, on 
New Zealand’s tariff regime, “although 99.6% of  tariff lines are bound, the average gap of 
9.1 percentage points between applied and bound MFN rates still imparts a degree of unpredictability”.  It is laudable that New Zealand has not used this gap during the period of review, 
but as with other members, we of course look forwar d to New Zealand reducing this gap in good time.  
On government procurement, we look forward to New Zealand eventually becoming a GPA signatory 
as well as its implementation of a single procurement policy across the state sector. 
211. As small and open economies, both New Zealand a nd Singapore have clear interests in a free 
and open, rule-based global trading environment.  Si ngapore thus welcomes the Secretariat’s report of 
New Zealand maintaining its support and commitment to the strengthening and liberalization of the 
multilateral trading system, including the successful conclusion of the Doha Round.  This has been 
manifested most clearly in the able stewardships of New Zealand’s Ambassa dors here in Geneva, who 
have served us so well as Chairs of the special sessions on agriculture.  WT/TPR/M/216 
 Page 31 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF NEW ZEALAND AND ADDITIONAL 
COMMENTS 
212. I would like to express our appreciation of the constructive dialogue we  have had during the 
course of our fourth Trade Policy Review.  We have  today provided some further written answers to 
questions received and we will supply answers to out standing written questions as soon as possible.   
213. Many of the points which were raised have been addressed in some way in our written 
responses to questions received from members.  Y ou will be pleased to hear I will not attempt to 
cover the full 162 pages of these questions and answer s this morning, but I do wish to address some 
aspects of New Zealand’s policies in which members showed particular interest. 
I. Economic and Institutional Environment 
Response to the Global Economic Crisis  
214. A number of members, including ourselves, have commented on the significance of our 
review taking place in the context of the global ec onomic crisis.  The grim news continues on that 
front with just this week the announcement from St atistics NZ that our export prices fell by 8.2 
percent in the March quarter, the biggest quarterly fall in 52 years.  The largest contributor to this was 
dairy prices – down 20.5 percent.  Import prices  were also down but overall our terms of trade 
declined by 3 percent, the larg est quarterly decline since 2002. 
215. New Zealand has responded to the global economi c crisis by taking both monetary and fiscal 
policy measures.  In presenting the 2009 Budget last month, the New Zealand Minister of Finance noted that it was being “written to respond to th e background of economic and fiscal challenges New 
Zealand faces”, and “starting New Zealand on the road to recovery”. 
216. The Budget focuses on three main objectives: he lping New Zealanders through the recession 
and supporting jobs; lifting producti vity and raising New Zealand’s international competitiveness; and 
taking steps to keep future government debt under control.  I was interested to see the Reuters 
headline yesterday, drawn from the Secretariat Re port, “WTO tells NZ to boost productivity, cut 
borrowing”.  The budget objectives show the Government  is clearly focussed on just that.  Further 
details of policies contained in the 2009 Budget, as well as policies introduced since the global 
economic crisis began, can be f ound in our written answers circulated on Wednesday – in particular 
question 1 from China; q1 from Australia, and q12 from Chinese Taipei; as well as paras 22-28 of our 
Government Report.  For those who are interest ed full details of the budget can be found at 
www.treasury.govt.nz/budget/2009.  
217. In addition, even during the economic downtur n, New Zealand has maintained and indeed 
furthered its commitment to open markets and trade liberalisation, including, for example, through the 
recent conclusion of FTAs with ASEAN and Malaysia, a nd with a further unilateral tariff reduction to 
be implemented on 1 July 2009. 
Foreign Investment
 
218. New Zealand has an open foreign investment re gime. We welcome foreign investment.  The 
Overseas Investment Act is currently undergoing a re view – with the objective being to ensure that 
our investment screening regime promotes and encour ages the flow of investment into New Zealand, 
while addressing issues about foreign invest ment in the New Zealand context.   
219. Korea asked for further details regarding the March 2008 amendment to the Overseas 
Investment Act.  No extra review process has b een introduced in the Act as a result of that WT/TPR/M/216 
Page 32  
 
  amendment.  The change to the regulations made  in March 2008 added an additional factor that 
Ministers may take into account in assessing whether an overseas investment in sensitive land will, or 
is likely to, benefit New Zealand.   All of the factors that can be taken into account when assessing 
investments in sensitive land are listed in the Ov erseas Investment Act 2005 and Regulations.   The 
new factor added was whether the investment will, or  is likely to assist New Zealand to maintain New 
Zealand control of strategically important infrastructur e on sensitive land.   This factor, as with other 
aspects of the Act, will be considered  as part of the current review. 
SOEs and privatisation
 
220. Some members noted that some state-owned enterprises have been "re-nationalised" since 
New Zealand's last review, and asked whether ther e were any particular lessons for the wider WTO 
membership which could be drawn from this process. 
221. The extent to which there has been "re-nationalisa tion" needs to be kept in perspective.  Only 
two previously privatised state-owned enterprises ha ve been bought back by the central Government - 
Air New Zealand and KiwiRail.  Neither purchase was the result of a specific Government policy 
decision to reverse the privatisation process in or der to take such enterprises back into state 
ownership. 
222. Rather, both cases were the result of specific circ umstances in which the factors in play were 
such that the Government of the day determined that  the best course of action in terms of benefit to 
the New Zealand taxpayer and consumer at the ti me was to take the operation back into state 
ownership (majority ownership in the case of Air New Zealand and full ownership for KiwiRail - the 
different treatment was also the result of specific circumstances). 
Official Development Assistance  
223. Nigeria queried NZAID's focus on the Asia Pacific.   It is true that given the size of New 
Zealand's overall aid budget (approx US$317m - NZ$500m per annum although increasing), and our 
geographic location, international development assi stance is primarily focused on countries in the 
immediate region - the Pacific and South East Asia.   The small and vulnerabl e island states of the 
Pacific, in particular, suffer from a low aid profile  against the larger developing & LDC countries in 
Africa and Asia.   As the Pacific Islands' near est neighbours, a focus on this region and its own 
substantial development needs is, in our view an appropriate use of New Zealand's relatively limited 
aid budget.   
224. Africa, by contrast, is a large continent w ith extensive development needs, necessitating a 
focused level of engagement from New Zealand.  In  the recent past New Zealand aid funds to Africa 
have averaged approximately (US$13m) (NZ$20m) a nnually.  This includes bilateral and regional 
initiatives but also grants to multilateral organisatio ns, a substantial proportion of whose programming 
is directed to Africa.   New Zealand NGOs allocate an additional aid sum of approximately the same magnitude: (around US$13m) (NZ$19m) per annum to African aid programmes. 
II. Trade Policies by Measure  
Bound and Applied Tariffs
 
225. Hong Kong, China and Singapore referred to th e gap in New Zealand’s bound and applied 
tariff rates and asked about New Zealand’s plans to  address this gap.  As I said on Wednesday, New 
Zealand has no plans to raise our applied tariffs and in fact will implement a further reduction on 
1 July this year. I am pleased to say that we ar e not looking to close the gap in that manner. New 
Zealand’s bound rates were agreed in the Uruguay Round.   The Doha Development Agenda is the  WT/TPR/M/216 
 Page 33 
 
 
  forum that will provide for further reductions of Ne w Zealand’s bound tariffs.  New Zealand’s plan to 
address the gap between bound and applie d rates is thus to continue to push strongly for an early and 
ambitious conclusion to the DDA.  This is  our number one trade policy priority. 
226. I would note also that New Zealand has been among those WTO members who have 
advocated the comprehensive elimination of all ta riffs multilaterally.  Lookin g forward, and beyond 
the outcome of the Doha Round, we will continue  to work to advance the earliest possible 
achievement of that objective. 
Tariff concessions on products of expor t interest to developing countries  
227. Here the discussion we found to be quite inte resting. We heard two contrasting comments 
regarding New Zealand’s tariffs on certain products of export interest to developing countries, in 
particular textiles, clothing and footwear.  In s hort, Malaysia and Turkey said they were too high, 
whereas implicitly Nigeria said they were too low. 
228. Malaysia on behalf of ASEAN and Turkey noted  that New Zealand’s MFN applied tariffs on 
textiles and clothing were relatively high compared to  our overall low average applied tariff of 2.4%.   
Under New Zealand’s unilateral ta riff reduction programme for the period 2006 to 2009 the 17-19% 
tariffs on clothing, certain footwear and carpet whic h existed at the time of our last Review will 
reduce to 10 percent on 1 July 2009.   All other textile  tariffs are either duty free or 5 percent.  At this 
stage no decisions have been made about when or whether there should be a further unilateral tariff 
review, but our understanding is that the level of these applied MFN tariffs compare favourably with 
other OECD countries in relation to similar products. 
229. Nigeria referred to the pref erences New Zealand provides to Least Developed Countries and 
poorer developing countries.  Since 2001 imports fro m LDCs into New Zealand have qualified for 
duty free quota free entry on 100% of tariff lines.  No LDC products are excluded from duty free entry.  Furthermore New Zealand's ROO regime for LDCs is simple and liberal.  It requires the LDC 
to meet an added value threshold of 50 percent b ased on an ex-factory cost calculation.  The exporting 
LDC may cumulate this added value th reshold from inputs from other LDCs.   
230. Nigeria also expressed concern at the erosion of this preference as a result of trade 
liberalisation.  New Zealand understands this concern and has engaged constructively in DDA 
discussions of preference erosion.  In 2006/7 Ne w Zealand provided just under $NZ 30 million of 
support for Aid for Trade related activities through our bilateral and multilate ral programmes.  This 
will increase in both absolute and proportio nate terms as New Zealand's overall ODA budget 
increases towards $NZ 600 million in 2012/13 and great er emphasis is given to sustainable economic 
development activities in line with the govern ment's revised development policy objectives. 
Sanitary and Phytosanitary Measures
 
231. A number of Members, including the EC, US, Ec uador and Malaysia ( on behalf of ASEAN), 
raised several comments and questions  on New Zealand’s SPS regime.   
232. In response to the concerns expressed by ASE AN, New Zealand shares the ASEAN view that 
the pursuit of a zero risk policy is not realistic, a nd believes such a policy is counterproductive, both 
globally and domestically. New Zealand values its unique  high health status, and is fully committed to 
developing SPS measures within the provisions of th e SPS Agreement. In this regard, and relating to 
comments put forward by the EC, we are confident that the New Zealand system ensures fair, non-
discriminatory and transparent rules for agricultural imports, in line with international guidelines.   WT/TPR/M/216 
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  233. Both the EC and ASEAN referred to the fact that exports of some products, notably some 
unpasteurised cheese and fresh eggs and live poultry,  are not permitted into New Zealand.  We are 
grateful that the EC acknowledged the efforts made in  this regard and the fact that imports of some 
unpasteurised cheese are now permitted. We assure the EC  that work will remain ongoing in this area, 
as new scientific evidence comes to light.  
234. The restriction of live poultry and fresh eggs into the New Zealand market is because the 
unrestricted importation of such products would present a significant risk to the maintenance of New Zealand’s current health status, in light of the fact that New Zealand remains free of certain infectious 
diseases.  The written answers provided in respect of  the EC’s questions 25 and 25-1 are relevant 
here.  As ASEAN noted, MAFBNZ is committed to working with requesting countries in establishing 
country and/or commodity specific import health standards to mitigate the import risks of such 
products.  
235. The EC also encouraged New Zealand to acceler ate the process of developing import health 
standards.  The development of such standards in  New Zealand largely depends on the complexity of, 
and priority of, completing individual risk analys is.  A programme of work has been initiated to 
improve border risk systems and processes – the ef fective and timely development of import health 
standards is within the scope of this programme.   
236. The US also raised some questions about th e recent reviews undertaken by New Zealand on 
provisions relating to domestic and imported foods .  As per the written answers provided to the US, 
the findings from both reviews were substantive and are published on the NZFSA website.  The 
reason why imported food was highlighted in this review as needing ‘comprehensive and targeted 
regulation’ was due to the assessment that cu rrent arrangements are not responsive enough and 
therefore need improvement.  We welcome the US‘s interest in these reviews and assure all Members that, when designing a food regulatory system, fu ll account will be taken of New Zealand’s WTO 
obligations. 
Government Procurement
 
237. A number of members noted favourably New Zealand's observership of the GPA Committee 
and asked about our intention to commence accession negotiations and develop government 
procurement legislation.   Our response has been  set out in our written answers (in question 27 from 
the EC), but I would take this opportunity to note  that New Zealand already has a transparent, non-
discriminatory and open government procurement system.  
238. As an Observer to the GPA we are watching w ith interest to see that these same qualities are 
captured in the outcome of the revised text and co verage negotiations.   We recognise the value of 
government procurement markets worldwide and the potential benefits of GPA membership, but there 
would also be internal costs in terms of procedur es. Accordingly, an ambitious market access outcome 
in those negotiations will be instrumental in de monstrating to New Zealand the overall value of 
acceding to the agreement.  
239. Our decision to commence accession negotiations therefore remains under review.  On the 
domestic front, we have no immediate plans to deve lop legislation, but I would note that central 
agencies already operate under the guidance provided by the Policy Guide for Purchasers (2007) and 
the Mandatory Rules for Procurement by Depa rtments (2007). Sub-central agencies (local 
government authorities) are also encouraged (but  not mandated) to follow these guidelines.  In 
addition, Guidelines issued by the Office of th e Auditor-General in its publication Procurement 
Guidance for Public Entities (2008) are written to ass ist all public entities, including local authorities .  WT/TPR/M/216 
 Page 35 
 
 
  240. Although there have been, as indicated in our an swers, no developments with regard to the 
previous government’s proposed single procuremen t policy across the state sector, a new government 
procurement reform agenda was announced by the Minister of Commerce on 11 June 2009. This 
includes the establishment of a small number of Cent res of Excellence in lead agencies to negotiate 
all-of-government contracts in common-spend area s, and cutting red tape to make it easier for 
suppliers to bid for government business. Fo r details, members may refer to the website 
www.procurement.govt.nz.  It should be noted that the new measures aim to improve value for money 
and are not intended to compromise openness, tran sparency or non-discrimination in an already 
competitive government procurement market. 
State Trading Enterprises  
241. Both the EC and Martin Glass, in his capacity  as discussant, raised comments or questions on 
New Zealand’s sole state trading enterprise, ZESPR I.  The EC questioned why New Zealand wished 
to maintain this arrangement.    
242. For New Zealand kiwifruit producers, ZESPRI remains the preferred industry model.  
Growers themselves see advantages in this model, whic h offers clear scope for industry to coordinate 
activities - including in areas such as innovation, orchard management, quality control, and the 
vertical integration of marketing efforts.  It is  important for Members to be aware that ZESPRI is a 
company owned and controlled by grower suppliers a nd that the ZESPRI Board of Directors is elected 
directly by grower shareholders.  ZESPRI must also fully comply with the New Zealand Commerce Act and receives no form of subsidy from the government. 
243. The EC also encouraged New Zealand to comp lete its STE notifications.  I am pleased to 
advise that new and full STE notifications for 2006 and 2008 were circulated to Members on 12 May 
2009 – as we noted in our answer to the question po sed in writing by the United States.  New Zealand 
is now up to date with its STE notification requirements.  
Competition Policy
 
244. Martin Glass also referred to the Fonterra  Cooperative Group as the main exporter of New 
Zealand dairy products.  As Mr Glass noted, by the end of next year, all exclusive licences to export 
dairy products to designated restricted markets will have expired.  Our written answers to some of the 
questions raised on this issue – most notably by the EC (see questions 29 and 30) - indicate that 
several New Zealand companies are now able to trad e into such designated markets.  As access rights 
to quota markets are allocated according to the shar e of raw milk that dairy companies collect from 
New Zealand farmers, the Ministry of Agriculture and Forestry estimates continued growth in the 
share of quota markets allocated to independent da iry companies over the next five years, and notes 
that the increased number of independent processors operating since 2001 shows that a competitive market for milk exists in New Zealand.  
245. Mr Glass also asked about the competition impli cations of the administration of certain meat 
exports to the US and the EC.  On this point I would note that the New Zealand Meat Board is the 
body that independently allocates and manages expor t tariff quotas into designated markets.  The New 
Zealand Meat Board allocates this quota to multiple exporting companies, with certain volumes reserved for new entrants. 
IPR protection
 
246. The EC and Nigeria referred to New Zeal and’s implementation of TRIPS Article 23 
concerning GIs for wines and spirits.  They noted th at the Geographical Indications (Wine and Spirits) WT/TPR/M/216 
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  Registration Act 2006 has not yet entered into force.  The reasons for this are as set out in our written 
responses to the EC’s questions – see page 79.   
247. When implemented, the Act will provide a furt her avenue for protection of wine and spirit 
GIs in NZ, but in our view current mechanisms already meet New Zealand’s Article 23 obligations.  As we explain in our written responses to the EC’s  questions, in New Zealand we currently provide 
protection for GIs under the Trade Marks Act 2002 (including through collective and certification 
marks); as well as under the common law tort of “p assing off”, and consumer protection legislation 
(the Fair Trading Act 1986).  A number of EC wine producers have already registered certification 
marks to protect their GIs in New Zealand.  In addition  New Zealand case-law clearly establishes that 
the Fair Trading Act 1986 and the common law to rt of passing off fulfils the requirements of 
Article 23.1.   
248. The US referred to New Zealand’s protection of patents and industrial designs.  We refer the 
US to our written answers to their questions (page 126-127).   
III. Sectoral Policies 
Telecoms Sector Developments
 
249. A few members commented on New Zealand's telecommunications market (which was fully 
opened to competition in 1989) referencing high m obile termination rates and some conditions on 
foreign investment.  The conditions on investment  referred to by India are the “Kiwi Share” 
requirements which relate to only one telecommuni cations provider, Telecom New Zealand, which 
operates the copper line telephone network that was previously owned by the New Zealand 
government.  The requirements were imposed when Te lecom was privatised, and are currently subject 
to a government review.  Other major operators, such  as Vodafone and TelstraC lear, are not subject to 
such requirements. 
250. On mobile termination rates, the answer h as been provided in our written responses to 
question 14 from the US.  The New Zealand Co mmerce Commission is currently undertaking a 
review of this issue with recommendations due in December 2009.   
251. Korea was interested in New Zealand's experience following the recent unbundling of 
Telecom’s local loop network.  Local loop unbundling was legislated for in December 2006 and the specific regulations were finalised in November 2007.  It is still too early to draw conclusions on how 
local loop unbundling has impacted infrastructure investment by alternative telecommunications 
service providers. 
Conclusion 
252. In conclusion, I would like to express once again our appreciation to the Secretariat, 
members, and Martin Glass, for their contributions  to the constructive discussions on Wednesday.  I 
note that we have received over 300 written questi ons, which is a considerable increase on the 187 
received in our last Review.  I am not sure whether this reflects a heightened interest in New Zealand’s trade policy or is perhaps an indication of the amount of time Members have had on their hands in the last couple of months or so.  In any case, we have attempted to answer all the questions 
and will do our best to address any follow up questions  or bilateral discussions on any of the issues 
raised.  WT/TPR/M/216 
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  DISCUSSANT 
253. On Wednesday, we were given a series of ve ry thorough and comprehensive comments on the 
trade policy regime of New Zealand by other Member s.  Members in general were highly appreciative 
that New Zealand remains one of the more open econom ies in the world.  Its average applied tariff is 
the lowest among all the OECD countries.  New Zealand has relatively limited government 
intervention and support measures in Agriculture.  It  continues to operate a reasonably open services 
sector.  Members were pleased to note that New Z ealand attaches high priority to the multilateral 
trading system.  One Member observed that New Zealand had an excellent record in meeting WTO notification requirements.  A few Members describe d New Zealand as a model for open trade or a role 
model in the WTO. 
254. Members, nevertheless, did also express some concerns.  The lack of protection for 
geographical indications was a case in point.  New Zealand’s stringent SPS regime was also another 
source of concern.  State-trading arrangements are in place for some agricultural products.  Some Members encouraged New Zealand to open up its telecommunications sector and to develop general 
legislation on government procurement.  Certai n Members urged New Zealand to show better 
transparency in its anti-dumping proceedings. 
255. Over the years, New Zealand has continued to  build up its network of preferential trade 
agreements.  It was requested to ensure that such  agreements did not affect its commitment to the 
multilateral trading system.  I was encouraged to h ear Ambassador Walker’s comprehensive statement 
this morning in response to such questions and c oncerns and also to note the additional replies to 
questions tabled this morning.  I expect other Members will study these responses carefully. 
256. The trade policy review process is always educational.  New Zealand is a good example of 
how a small, island nation, with a relatively open  regime for trade and investment, has transformed 
itself into a competitive economy.  During the peri od under review, New Zealand registered a fiscal 
surplus every year apart from 2008, mainly as a result of the deterioration in the global financial and 
economic situation.  Such fiscal discipline and performance is enviable. 
257. As noted in the Government Report, trade is  an integral component of the New Zealand 
economy.  It remains a fundamental component of the Government’s broader economic policies 
designed to promote sustained economic growth.  I si ncerely hope that New Zealand will continue to 
deepen its liberal trade policies, uphold its commi tment to the primacy of the multilateral trading 
system, and serve as a showcase for free and open trade.    
CHINA 
258. The information that New Zealand has pr ovided gave us a be tter knowledge of New 
Zealand’s policies.  The good quality of the replies is  another sign of the efforts that New Zealand has 
endeavoured to maintain the transparency of its trade regime which China appreciates.   
259. I would also like to know whether our New Z ealand colleagues are able to respond to a few 
more questions which our colleagues from Beijing have  forwarded to us.  We wish to know a bit more 
about certain specific agricultural support measures as the regime of taxes and fees regarding vessels 
in New Zealand. 
EUROPEAN COMMISSION 
260. Even though we closely follow developments in  New Zealand, this TPR has enabled us to 
learn more about the current state of affairs in New Zealand's trade policy. We see some issues that 
need to be swiftly addressed as referred in our writt en questions and the oral statement delivered last WT/TPR/M/216 
Page 38  
 
  Wednesday.  Today, I would like to seize the opport unity to raise some follow up questions to the 
replies provided to our advance written questions. 
261. Firstly, as regards replies given on geographi cal indications, we have two follow-up 
questions: 
262. Reply to Q. 37
.  In particular, we note that the case referred by New Zealand was based on 
passing-off, and it was notably found that a substa ntial proportion of the New Zealand public would 
be misled by use of the terms Champagne or Austra lian Champagne. It was also found that there was 
a breach of Section 9 of the Fair Trading Act, whic h provided that no person shall, in trade, engage in 
conduct that is misleading or deceptive or is likely to deceive or mislead. Those findings are based on 
subjective test, i.e. assessment of whether the public would be misled or deceived.  
263. It is also important to note that this case was issued prior to the entry into force of the TRIPS 
Agreement.  In light of these remarks, could Ne w Zealand provide other examples in New Zealand 
case-law applying the objective criteria of Article 23.1 TRIPS?  
264. Reply to Q.38 : In its answer, New Zealand notes that "Registration of geographical indication 
under the Geographical Indications (Wine and Sp irits) Registration Act 2006 would, therefore, 
effectively be equivalent to establishing reputa tion and goodwill necessary for taking action against 
misleading and deceptive use of a geographical indi cation under the Fair Trading Act."  Could New 
Zealand explain whether any action against the illeg itimate use of a GI registered pursuant to the 
Geographical Indications (Wine and Spirits) Regist ration Act 2006 will need to be taken under the 
Fair trading Act? Will it still be necessary to bring evidence of misleading or deceptive use of the GI? 
265. Secondly, as regards replies on agricultura l sector, we have one follow question: 
266. Replies to question Q.29-30 :  We note that the replies seem to be incomplete. As noted in 
Question 30, there are 11 designated markets for dairy quotas, but the replies only refer to the EU, US 
and Dominican Republic market. Could New Zealand confirm the market share of Fonterra in the 
other designated markets?  
267. The EC will submit these follow up questions al so in writing and we thank in advance New 
Zealand for providing us clarification on the referred issues.  
UNITED STATES 
268. We have one follow up question to our written questions that will be submitted next week.  
Our question related to the government stated goal to ensure the delivery of safe and suitable food.  In 
New Zealand’s response they described matters relating to the composition of food such as the presence of a substance that “will be unexpected  or unreasonable”.  Our question is whether New 
Zealand could provide an example or explain further what is meant by a substance that would be 
unexpected or unreasonable in this context. 
NIGERIA 
269. My delegation wants to thank New Zealand for providing the answers to our questions.  We 
will study the answers and if there is any need to  go back to them we will still come back to 
Ambassador Walker for any further clarification.  WT/TPR/M/216 
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  SECRETARIAT 
270. Just to draw delegations attention to the fact that we have issued a new information document 
which you will receive in the usual distribution process.   There are copies at the back of the room.  It 
explains that we are changing the way in which we are doing the Minutes for the TPR reports, and please read it and then if any delegations have questions please do not hesitate to contact us.  WT/TPR/M/216 
Page 40  
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
271. The fourth Trade Policy Review of New Zeala nd has given us a much clearer understanding 
of New Zealand's trade policies and practices and of the challenges that it faces.  I thank Dr. David Walker, New Zealand's Permanent Repr esentative to the WTO, and his delegation as well 
as the Discussant, Mr. Martin Glass of Hong Kong, China, and Members of the TPRB for 
contributing to our informativ e and constructive exchange of views during these two days.  
New Zealand's response to the large number of questions is also very much appreciated. 
272. Members praised New Zealand for being amongst the most open economies in the world and 
commended it for its prudent macroeconomic policies, liberalization and restructuring.  These have 
contributed to it becoming an economy enjoying: stable growth, declining unemployment, higher 
living standards and contained inflation.  In th e midst of the present financial upheaval, several 
Members praised New Zealand's policy initiatives, partic ularly the fact that it has not resorted to any 
trade protectionist measures.  At the same time, other Members sought further information on the government's response to the crisis. 
273. Some Members noted the relatively low leve l of productivity growth in the economy and 
inquired about steps New Zealand was taking to impr ove it.  Several Members inquired about changes 
made to New Zealand's Overseas Investment Act and hoped that this would further promote and 
encourage inward FDI.  Some Members raised c oncerns about investment restrictions in the 
telecommunications sector. Certain Members also enquired about the rationale behind 
renationalization. 
274. Members noted New Zealand’s priority of developing a free trade agreement network to 
complement the multilateral trading system’s regime overseen by the WTO.  Members also praised 
New Zealand's active and constructive participation and leadership role in the Doha Round of trade 
negotiations mainly in the areas of agriculture a nd fisheries subsidies.  Members also acknowledged 
New Zealand's support for the WTO's technical assist ance activities and its Aid for Trade initiatives.  
Certain Members noted New Zealand's interest in promoting the TPRM to highlight the relationship 
between trade and development. 
275. New Zealand was commended for unilaterally lowering its applied MFN tariffs and the low 
average rates on agricultural as well as industrial products.  However, Members expressed concern 
about the gap between applied MFN rates and bound rates and the relatively high tariffs on textile, 
clothing and leather products.  Members also expresse d concerns about New Zealand's relatively strict 
SPS regime and urged New Zealand to align thes e with international benchmarks.  Members 
appreciated the particularly low level of domestic support provided to agriculture;  however,  aspects 
of state trading activities of two major enterpri ses dealing with dairy and kiwifruit exports were 
questioned. 
276. Members welcomed New Zealand becoming an observer to the WTO Plurilateral Agreement 
on Government procurement and urged New Zealand to become a member as soon as possible.  Intellectual property rights protection issues, including GI protection, were also of concern to certain 
Members. 
277. To conclude, I would again like to thank Ne w Zealand's delegation for enabling us to 
understand better its trade and trade -related policies and the domestic and international contexts in 
which they are formulated and implemented.  I would also like to than k the Discussant for his 
insightful comments, and Members for contributing to what has been a very enlightening two days of 
discussions.  We look forward to receiving respons es to the remaining outstanding questions within 
the next month. 
__________