Terms of Reference for a Review of Post-2005 Tariff Policy
[ Last Updated 27 January 2006 ]
Contents
Background
1. The Government has requested that officials review New Zealand's post-2005 tariff policy and develop tariff policy options for that period.
2. New Zealand's process of unilateral tariff reduction has been suspended and, as a general rule, tariffs are currently being held at their July 1999 levels. This freeze will apply until July 2005.
Objectives
3. The Review will develop options and recommendations for tariff policy beyond 1 July 2005 that take into account the Government's economic development strategies and the costs and benefits to the New Zealand economy, consumers, industries, their employees and the wider community, of the various policy options.
4. The Review will begin in February 2002.
5. The Review will have regard for the Government's desire to:
- promote the development of prosperous and internationally competitive industries;
- encourage regional development and reduce economic disparity;
- abide by New Zealand's international commitments and actively participate in bilateral and multilateral trade negotiations; and
- encourage reciprocity by New Zealand's trading partners in regard to the lowering of tariffs.
Guiding Principles
6. The Review will be guided by the following principles:
- the outcome will not be prejudged;
- it will be widely inclusive of all stakeholders and sectors of the economy, and ensure that Māori, women and Pacific Island business groups are effectively consulted;
- it will be broad in scope and give consideration to the social, employment (including gender and ethnic issues) and regional impacts of tariff policy on different groups; and
- it will be undertaken in the general context of the Government's broader economic, industry and regional development policies.
Key Areas of Focus
7. The Review will:
- outline the rationale for, and assess the wider economic effects of, previous tariff reduction/removal. This will include consideration of industry efficiency, regional and industry development, the labour market and social consequences of tariff reduction and the effects on exporters and consumers;
- assess the benefits and costs of existing tariffs and their effectiveness in meeting the Government's broader economic and industry development objectives compared to other measures;
- assess the wider effects of remaining tariffs at the firm, sector and broader economy level, in the context of the Government's overall economic policies;
- consider the implications for tariff policy of New Zealand's international obligations, including those under APEC, the WTO, and in the bilateral context; and
- assess the implications of pursuing a policy of reciprocity in the context of tariff reduction.
Results of the Tariff Review
8. The Review will have the final goals of:
- reporting on the matters identified in paragraph 7 above;
- identifying, analysing and reporting on the benefits and costs of tariff reduction across all sectors of the New Zealand economy; and
- providing the Government with options and strategies relating to the further delay, resumption or acceleration of unilateral tariff reductions in the context of post-2005 tariff policy.
9. The Tariff Review will be completed by 31 March 2003.
Those interested in participating in the Tariff Review's consultation process should register their interest with the Ministry of Economic Development: Graeme Horne, Regulatory and Competition Policy Branch, Ministry of Economic Development, 33 Bowen Street, PO Box 1473, Wellington. Tel. 04-470 2359; Fax. 04-499 1791; Email. graeme.horne@med.govt.nz.
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