Tariff and non-tariff barriers to New Zealand's exports of wood based products to China

Authors: J. Turner, F. Maplesden, B. Walford, S. Jacob
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2005, Issue N.Z.J.For. 50(1) 2005, pp 27-33, May 2005
Publisher: New Zealand Institute of Forestry

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Abstract: In November 2004 the governments of the People's Republic of China (China) and New Zealand agreed to negotiate a Free Trade Agreement. This study provides an assessment of the potential impact on the New Zealand wood-based industry of removal of tariff and non-tariff barriers impeding New Zealand's trade in wood-based products with China.
Most published sources indicate that China continues to offer domestic companies more favourable treatment, and that trade barriers are the main obstacle to realising equal treatment for foreign and domestic products. In particular, China's VAT regime and import-licensing procedures favour goods bound for exporting industries over those going to the domestic market.
Removal of non-tariff barriers, which favour China's processing industry, would have a two-fold effect on forest product exports from New Zealand. Firstly, it would reduce demand for raw material imports as less competitive processors in China are forced to close. Secondly, it would encourage imports of processed forest products such as wood-based panels and paper.

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