25 Nov 2010

Tariffs cost growers average $34,000 each - report

6:01 am on 25 November 2010

Horticulture New Zealand says trade barriers are costing growers even more this year than last.

A Trade Barriers report for 2010 issued by the industry shows tariffs impose an average cost of $34,000 on each grower - an increase of $6000 (21%) on 2008.

In total, horticultural exporters paid an estimated $235 million in tariffs to importing countries, an increase of 19% on 2008.

At the same time export earnings increased by 8%.

The Horticulture Export Authority says Asia has some of the biggest barriers to trade.

Chief executive Simon Hegarty says Korea applies an average tariff rate of 41% on produce.

Horticulture NZ says the report also highlights a disturbing trend of an increasing use by some countries of non-tariff trade barriers known as sanitary and phytosanitary barriers (SPS).

Chief executive Peter Silcock says these includes the use of quotas, grade standards and labelling rules, which he says are often driven by politics, not sound science.

He hopes the report will provide New Zeasland trade negotiators with ammunition to fight for market access.