Potential Impacts on New Zealand of Tariff. Liberalisation under AANZFTA In broad terms, New Zealand’s commitments on tariff liberalisation follows a similar structure to the commitments of Australia and ASEAN countries, with 90 percent of tariff lines contained in a “normal track” (with elimination between entry into force and 2012) and 10 percent of lines in a “sensitive track” with tariffs to be eliminated between 2013 and 2020. The most significant years for tariff elimination are entry into force (80 percent of lines), 2010 (a further 5 percent of lines), 2012 (another 5 percent of lines), 2017 (6 percent of lines), 2020 (4 percent of lines). Tariffs on a small number of tariff lines are eliminated each year between 2013 and 2019. The structure of the New Zealand offer and the effect on Indonesian, Malaysian, Philippine and Vietnamese trade is set out in Table 16 below. TABLE 16 STRUCTURE OF NEw ZEALAND OFFER Percentage Key Products Percentage of NZ Imports Already Duty Free from: of Tariff Lines Becoming Duty Free Indonesia Malaysia Philippines Viet Nam Already Duty Free 58.6% 78.5% 77.9% 76.8% 26.4% 2009 79.8% Some plastics, rubber (excluding new car tyres), wood, glass fibres, manufactures, some food products 78.8% 83.3% 80.4% 28.4% 2010 84.7% Some plastics, rubber 80.0% 86.6% 82.9% 32.4% 2011 84.7% Nil 80.0% 86.6% 82.9% 32.4% 2012 90.0% Some plastics, wood, yarn, certain fabrics, some iron or steel products, glass wool insulation, refrigerators, tug boats, mattresses, upholstered seats with wooden frames 81.1% 91.9% 88.1% 39.2% 2013 90.3% Some metal furniture, bicycles 82.0% 92.4% 91.3% 51.1% 2014 90.3% Some iron and steel bars and rods 82.0% 92.4% 91.3% 51.1% 2015 90.3% Saddles and harnesses 82.0% 92.4% 91.3% 51.7% 2016 90.4% Very narrow range of fabrics 82.3% 92.4% 91.3% 52.0% 2017 96.5% Fabrics, carpets, clothing, footwear, some iron or steel, new car tyres 83.9% 93.4% 94.6% 54.5% 2018 96.7% Footwear 85.0% 93.4% 94.7% 65.6% 2019 96.8% Wooden furniture 87.2% 95.5% 95.5% 92.0% 2020 100.0% Some: Clothing, plastics and wood, chemicals, iron and steel, food products 100.0% 100.0% 100.0% 100.0% While there is a reduction in most tariffs prior to elimination, this does not occur in a year-by-year linear fashion as was the case with the China FTA. In fact, because of New Zealand’s scheduled unilateral tariff cuts, New Zealand’s actual current applied tariffs on many lines are likely to already be below the AANZFTA commitment for most of the implementation period. However, all New Zealand rates w...
