New Zealand has concluded a groundbreaking trade deal with Costa Rica, Iceland, and Switzerland, to remove tariffs on hundreds of products that benefit sustainability and the environment, Trade and Agriculture Minister Todd McClay said. Source: Timberbiz
The Agreement on Climate Change, Trade and Sustainability (ACCTS) opens up commercial opportunities for New Zealand businesses by focusing on trade in sustainable goods and services. Crucially for New Zealand, it will see tariffs removed on key exports including 41 wood products and wool.
Under brand New Zealand there is a leading story to tell as to the value its wood products and timber used in construction play in addressing climate change and sustainability challenges, says Mark Ross, Chief Executive of the Wood Processing and Manufacturers Association ‘not only will this new trade agreement deliver commercial benefits for New Zealand, but it will send a strong environmental message to our trading partners’.
As new countries join the collective formed by New Zealand, Switzerland, Costa Rica and Iceland, the potential to grow a commercial benefit to the wood products industry over time is significant.
Wood provides multiple benefits to New Zealand, and it is positive to see the government backing our industry in removing unnecessary barriers and implementing new trade Agreements’ Mr Ross said.
“Export growth will help fund the wood processing industry, with value added wood products encouraging greater onshore processing of logs, more employment in our regions, and increasing our global contribution to embodied carbon storage.”
This agreement also provides support to the renewable energy sector by establishing rules to prevent harmful fossil fuel subsides and sets guidelines for ecolabelling.
Tariffs will be eliminated on more than 300 environmental goods on entry into force of the agreement, including wind and hydraulic turbines, electric vehicles, wool fibre, recycled paper, and wood products offering a more environmental alternative to carbon-intensive construction materials, such as steel and concrete.
Tariff elimination will make such products more competitive, thereby incentivising use and investment in related technologies.
This trade agreement is the first New Zealand has concluded with these countries outside of the WTO, and is set to deliver new, high-quality, trade opportunities while tackling climate and sustainability challenges.
