Friday, 22 November 2013 15:31

Taiwan deal early start welcomed

Written by 

THE HORTICULTURE export sector and Summerfruit NZ have welcomed the early start to the economic cooperation agreement with Taiwan.

The earlier than anticipated start of December 1 to the deal is good news for exporters, says New Zealand Horticulture Export Authority chief executive Simon Hegarty.
Officials worked to secure this deal and benefits will be realised in 2013/2014 export season.

Taiwan is the NZ horticulture sector's 6th largest export market in value terms with exports in 2013 amounting to $112 million.
However, these exports attracted about $20million in tariffs at an average 18.5% of the value. The 20% tariff on kiwifruit alone amounted to a cost of $16m or an average $6000/grower, while the cost to the 406 apple growers was $2.8m or an average of $6930 per grower.

Specific examples of benefits include:
• apples drop from 20% tariff to zero tariff on 1 Dec 2013,
• cherries drop from 7.5% tariff to zero on 1 Dec 2013,
• kiwifruit phased down from 20% to zero over 3 years (by 1 Dec 2016),
• onions and buttercup squash will be phased down from 25% to zero over 8 years (by 1 Dec 2021).

Summerfruit NZ's chief executive, Marie Dawkins, says Taiwan is our most important market for cherries with nearly 600,000kgs exported there for the 2012-13 season, or about 41% of all cherry exports.
The timing of the announcement was slightly unexpected as earlier indications suggested the agreement would come into effect some time in 2014.

The first boxes of cherries under the new tariff free agreement are likely to be exported within days of the deal coming into effect. Dawkins says the cherry season is a relatively short one and growers were well placed to make the most of any opportunities the reduced Taiwanese tariff might provide.
For more information go to website www.hea.co.nz

More like this

Editorial: Winston's words of wisdom

OPINION: Foreign policy is a real strength of Winston Peter and this is recognised by Ministry for Foreign Affairs and Trade (MFAT) officials who, so the story goes, wanted him in his present role because of his experience in that field.

NZ supports rules-based system

Deputy Prime Minister Winston Peters often describes NZ as a small and isolated nation situated 'just north of the penguins' but says in terms of global affairs, NZ and other small nations should be judged on the quality of their arguments and not the size of their military.

Featured

National

Machinery & Products

New Holland combines crack 50 years

New Holland is celebrating the 50th anniversary of the introduction its Twin Rotor threshing and separation technology, which has evolved…

Iconic TPW Woolpress turns 50!

The company behind the iconic TPW Woolpress, which fundamentally changed the way wool is baled in Australia and New Zealand,…

» Latest Print Issues Online

The Hound

Double standards

OPINION: Imagine if the Hound had called the Minister of Finance the 'c-word' and accused her of "girl math".

Debt monster

OPINION: It's good news that Finance Minister Nicola Willis has slashed $1.1 billion from new spending, citing "a seismic global…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter