Non-tariff barriers – how do we get more for NZ wood products?Friday 1 Nov 2024
In this global landscape, New Zealand is well-placed to export high quality sustainable timber. While we too have felt climate impacts like cyclone damage from Gabrielle, we have strong biosecurity systems and haven’t experienced the large fires that some of our trading partners have. We have a sustainable plantation forestry system that means we aren’t harvesting native timbers, and we have a comparatively strong regulatory system for environmental risk management through the National Environmental Standards for Commercial Forestry. We also have strong labour laws, and New Zealand is renowned for our transparency and accountability. Why, then, is New Zealand radiata pine a commodity product and largely traded in only a handful of markets? Part of the reason New Zealand’s forest products are not reaching their full potential for market competitiveness is due to non-tariff barriers. While most of New Zealand’s diplomatic efforts have focused on reducing or eliminating tariff barriers (and what great work we’ve done on free trade agreements), non-tariff barriers are harder to track. Some examples of non-tariff barriers can include phytosanitary requirements, local environmental and industry standards and direct subsidies to our competitors. But hang on, didn’t I just say our biosecurity and sustainability systems give us a competitive advantage? They do, but only if we can meet the reporting requirements and standards that our trading partners set, and this is what makes non-tariff barriers so tricky. For instance, we should easily be able to meet any deforestation regulations or requirements because, with our plantation forestry model, we are not deforesting any areas for timber production in New Zealand. However, the European Union deforestation regulations, which are due to come into effect at the end of the year, have unclear reporting requirements which means they could end up serving as a trade barrier to New Zealand. Forest Owners Association and the Wood Processors and Manufacturers Association appeared before the Foreign Affairs, Defense and Trade Select Committee on 17 October to put our case to government for more support in addressing these non-tariff barriers to increase competitiveness of New Zealand wood and timber products. We are also working with Te Uru Rākau on an export double strategy for timber and wood products. Obviously, this strategy will have to be value based as opposed to volume, but there’s a lot of potential in diversifying both forestry products beyond timber. We can also do more to market the high-quality timber we grow and share our great story around sustainability. In the State of the World’s Forests report, the FAO concluded that the path to a sustainable future lies in harnessing the power of innovation. Certainly, for New Zealand timber products, innovation will be key to realizing our full global market potential and bringing that value home to New Zealand communities. More >> Source: Dr Elizabeth Heeg, Chief Executive, NZ Forest Owners Association. | ||
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