Brian Stanley WPMA
The New Zealand Forest Owners Association says the phased reduction of tariffs for wood and paper exports to China will assist in a long term realigning of New Zealand exports into more further processed timber products.The announcement was also welcomed by the WPMA. Source: Timberbiz
Association CEO David Rhodes said NZ Trade Minister David Parker had done a great job of removing much of the remaining obstacles for the processed timber export trade into China.
“It shows the long-term value of industry working with government as well, with a good foundation laid down by a major industry delegation to China in September last year with Forestry Minister Shane Jones,” Mr Rhodes said.
“Our industry is hugely reliant on China. Our processed timber exports there are worth $509 million a year, but that value could be a whole lot more, if it were not for those residual tariffs discouraging exporters,” he said.
While the tariff removal on current exports was relatively small, it was the potential for growth without the tariffs which was significant.
“Two of our next two major export markets, Australia and Japan, are dominated by further processed exports. Paper and paperboard for Australia and wood panels for Japan,” Mr Rhodes said.
It would be some time before China became a similar market for New Zealand but the Chinese government had given a clear signal to New Zealand that it has no issue with processors in New Zealand expanding their exports to China and adding another 12 categories to the 48 already under reduction under the original 2008 FTA Agreement.
“We’d like to see tariffs taken off the final one percent of the export trade, but I’m sure the momentum is in that direction and it is only a matter of time before all the tariffs are gone,’’ Mr Rhodes said.
“More processing in New Zealand will create more jobs and give processors more confidence they have market access with fewer tariffs.”
The Chair of the Wood Processors and Manufacturers Association of New Zealand (WPMA), Mr Brian Stanley, welcomed the announcement.
“I would like to thank the Prime Minister, Trade Minister Parker and Forestry Minister Jones for pushing the case for NZ’s wood industry to the top of the agenda in the recent FTA negotiations,” Mr Stanley said.
“MFAT trade officials are to be congratulated on gaining tariff concessions for the NZ wood industry in the protected Chinese market. I know that this has been a very hard-won battle that will see NZ$2 million of savings on 15 export product lines in a NZ$36 million annual trade. Whilst these may not be huge figures in terms of the overall export of NZ wood products to the world the fact remains that NZ was able to make significant inroads on market access where initially there was no go.”
As tariffs tumble Mr Stanley urges the attention of government now turn to defeating other trade barriers, particularly overseas manufacturing subsidies.
“I’m sure if we confront these with the same skill and mettle displayed in our fight against tariff barriers then this can only further benefit NZ’s wood manufacturing sector together with the jobs and communities it supports,” Mr Stanley said.
