WELLINGTON, Oct 17 (Bernama) -- The New Zealand government Monday said it is to review its free trade agreement (FTA) with Southeast Asia, citing a rising number of non-tariff barriers and other concerns, China's Xinhua news agency reported.
The ASEAN-Australia-New Zealand FTA (AANZFTA) - covering New Zealand, Australia, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam - had helped lift New Zealand trade with the region by 25 per cent since 2010, said Trade Minister Todd McClay.
However, McClay said in a statement he was concerned that New Zealand businesses were "leaving money on the table."
Since coming into force in 2010, the FTA has reduced or eliminated tariffs across many of New Zealand's exports into key Southeast Asian markets, and was expected to deliver NZ$71 million (US$50.42 million) in cost-savings for New Zealand exporters this year.
This was expected to rise to around NZ$96 million (US$68.18 million) once the staged elimination of tariffs was completed after 2020.
"However, from a New Zealand perspective, it is not clear that all businesses use the FTA when exporting to Southeast Asia and this means they could be paying unnecessary tariffs," said McClay.
"Exporters of both goods and services also face an increasing number of non-tariff barriers in Southeast Asia, such as import quotas, subsidies, customs delays and technical barriers, which are holding them back."
The government review would take place ahead of a comprehensive review of AANZFTA by New Zealand, Australia and the ASEAN (the Association of Southeast Asian Nations) countries next year.
"This review will help us better understand the New Zealand business perspective going into that broader review and equip us to seek possible improvements to the FTA," said McClay.
The introduction of more liberal and transparent trade rules under the FTA had helped grow New Zealand's trade with ASEAN from NZ$12 billion (US$8.52 billion) in 2010 to over NZ$15 billion (US$10.66 billion) last year.
"This region is home to 600 million people, with a combined economic output of NZ$3.5 trillion (US$2.48 trillion). It is a huge market for the goods and services we produce and an important source of competitively priced imports that make everyday items cheaper for New Zealanders," he said.