Joshua Tan: ExportNZ Executive Director on the non-tariff barriers exporters face, resulting in around $9 billion a year in costs

ExportNZ is sounding the alarm about the costly obstacles faced by exporters. 

Its report says at least 83% of our exports are affected by non-tariff barriers, resulting in more than $9 billion a year in costs. 

It finds on average, Kiwi products face nine separate non-tariff barriers across the markets they enter. 

Executive Director Joshua Tan told Mike Hosking it's also about having the right settings at home. 

He says it's not just about Free Trade Agreements or non-tariff barriers; there's a lot which can be fixed in this country. 

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Episode Transcript

Speaker 1 (00:00):
Pre election report out this morning, we find that what
they call non teriff barriers are costing is more than
nine billion dollars a year.

Speaker 2 (00:06):
Now.

Speaker 1 (00:06):
These costs effect eighty three percent of our exports. There
are account of nine different barriers. Apparently. Joshua ten, Executive
Director for Export New Zealand is with us, josh moonding,
good morning, mic so certification, technical standards, label and rules,
blah blah blah. Do they not get cleaned up in FTAs?

Speaker 2 (00:23):
No, so those are mostly outside of fta's I think
you know what the question is is that you know
what can New Zealand really do to work through some
of these non tariff barriers? And that nine billion dollar
figure now, to be fair to our government officials, to
our customs agents, to our negotiators, they work incredibly hard
and these barriers can take years of intensive work to
actually get other countries to address. So the point that

(00:45):
we're trying to make care to thinx government is that
need to increase the resources into the expertise within those
agencies more effectively so they can go after more of
these barriers and reduce that nine billion dollars figure, hopefully
return some of that money back to the New Zealand economy.

Speaker 1 (00:58):
But barriers are there for a good reason in some cases,
aren't they. I mean, what's the difference between a barrier
and a free for all You just let anything in
any time, to anywhere.

Speaker 2 (01:06):
Yeah. So, like a non tariff barrier can be anything
from laboring requirements or to additional certification, import licenses, you know.
And individually these things can sound quite minor, but collectively
they can add quite significant costs and delays and uncertainty
for exporters. As we've stated about nine billion dollars worth
of worth of revenue into New Zealand. You know, we've

(01:28):
heard a lot of examples from exporters. You know, they've
done everything that's required here in New Zealand under an FTA,
they've shipped the product, and then it gets head up
at the border, right because overseas authorities they interpret the
certification the requirements differently. So that's when you're dealing with
potential delays of weeks, storage costs, product deterioration and obviously

(01:49):
frustrated customers at the other end.

Speaker 1 (01:50):
I noted you report this morning. You're also talking about
R and D and a tax right off from fifteen
to twenty five percent. So how much of this is
about barriers and how much this is you an election
time going, hey, give us a break.

Speaker 2 (02:01):
Look, there's a lot that's in our report. I think
the thing for us is, you know, we're talking about
international competitiments. We're talking about things like growing our economy.
It's not just free trade agreements, it's not just non
tariff barriers. Actually, there is a whole system here in
New Zealand that we need to address and to get
right if we want our exporters to grow.

Speaker 1 (02:20):
Indeed, do we set the standard? In other words, when
they come back at us and go, well, you might
want this, but look at you guys. Do we are
we clean as a whistle?

Speaker 2 (02:29):
I think we do a really good job. We've got
a really strong reputation overseas markets for being an open
and honest trading partner.

Speaker 1 (02:36):
Okay, nice to talk to you. Appreciate it. Joshuatan, who
is the executive director for Export New Zealand.

Speaker 2 (02:41):
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Speaker 1 (02:44):
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