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Japan's 6.4% tariff on kiwifruit alone amounted to a cost of $17.5 million.
The New Zealand Horticulture Export Authority (NZHEA) is positive following the announcement of the TPPA trade deal.
Simon Hegarty, CEO of NZHEA, says he welcomes the TPP announcement particularly with Japan's inclusion, which will eliminate an estimated $28 million tariffs.
"While the TPP involves 12 countries resolving a range of trade issues, tariffs are a prominent trade barrier component," says Hegarty.
"...as our third largest market, Japan's inclusion is significant for the future growth of the New Zealand horticulture export centre."
New Zealand exports about 60% of its annual horticulture production, at a value of $2.7 billion with the TPP countries accounting for $1.9 billion (44%) of that total.
Japan is the destination for $446 million in exports, however the country accounts for 90% of the estimated $31 million in tariffs paid to TPP countries.
Japan's 6.4% tariff on kiwifruit alone amounted to a cost of $17.5 million. The 3% tariff on New Zealand's 34 squash growers was $1.3 million and the 8.5% tariff on onions was close to $0.94 million.
"Securing this agreement is a major achievement and step toward the export double growth objective." says Hegarty.
"Eliminating trade distorting tariffs in our key export markets and maintaining our international competitiveness is crucial for the future – we can't flourish without access to markets and this agreement enhances that access."
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