20 Nov 2013

PM optimistic over prospect of tariff move

7:01 am on 20 November 2013

Prime Minister John Key says he is hoping Thailand will remove tariffs more quickly on key exports, following a meeting with his Thai counterpart.

Mr Key met Thai Prime Minister Yingluck Shinawatra at the end of his two-day trip to the country, where he has been trying to drum up business for New Zealand companies.

Under the 2005 Free Trade Agreement, the tariffs would be phased out in 2020.

At the moment, New Zealand can export a certain amount of product for lower tariffs, but Mr Key says for the likes of meat, exports are doing so well that they're hitting that limit after only a few months.

He says on beef for example, there's a tariff of about 50% once that limit is reached.

Mr Key raised the issue with Ms Yingluck asking that Thailand consider phasing out the tariffs sooner. He says the Thai Prime Minister was receptive to the idea.

The Thai government says it will now consider the request.