Wood industry calls out New Zealand government on NTBs in trade

The New Zealand wood industry Wednesday called out the government to better tackle non-tariff barriers (NTBs) in its international trade pacts.

The Wood Products Council issued a statement saying forest products exports were "not competing on a level playing field" in other nations because of NTBs.

"They may include quantitative restrictions, administrative procedures, phytosanitary and technical regulations and standards, price control measures, subsidies, forest management certification and product labeling, and illegal activities," said the council.

"In the negotiation of future bilateral and multilateral trade agreements, New Zealand trade negotiators should take into account the impacts of NTBs on the forestry sector. The removal of NTBs will potentially have higher gains for the New Zealand economy than the removal of tariff barriers," said the council.

It said Canada had extensive measures to protect its domestic wood processors, including restrictions on log exports, and government-funded export market development programs.

The opposition New Zealand First party backed the industry, saying the export of raw log contributed little to the New Zealand economy.

"Sawmillers and wood processors have been feeling the pain for a long time but the government has stood by and done nothing," New Zealand First party leader Winston Peters said in a statement.

Trade Minister Todd McClay said NTBs were often not directly visible and could be hard to quantify.

"But we take the issue seriously and are investing considerable resources to address these barriers," McClay said in a statement.

The 12-nation Trans-Pacific Partnership (TPP) signed in Auckland last month would establish a framework to ensure trading partners resolved issues facing New Zealand exporters, he argued.

"Under TPP, the enhanced customs commitments in the TPP region will benefit exporters through increased efficiency at the border and expedited release of goods. This should lead to a lower cost of trade, and simplified customs procedures for traders," he said.

Research commissioned by the government concluded that the reduction of NTBs under the TPP would have a significant impact on trade flows, and hence significant economic gains for New Zealand.

The result of the TPP outcome on NTBs alone is expected to produce an economic benefit of 1.46 billion NZ dollars (936.02 million U.S. dollars) in additional GDP by 2030.