CTU welcomes tariff announcement

The Council of Trade Unions has welcomed the announcement today by Trade Minister Tim Groser and Commerce Minister Simon Power that the Government has decided to extend current import tariff levels at least until 2015 and delay any further review until 2013.

Peter Conway, CTU Secretary, said that although the level of tariffs provide much less security in respect of local industry and employment than in the past, they still make a difference to sectors such as carpets, clothing, textile and footwear as well as plastics and whiteware.

"The eventual phase out of tariffs on items such as clothing in the context of the free trade agreement with China and the likelihood that tariff reductions will feature in other such trade agreements mean that it does not make sense for New Zealand to undertake unilateral tariff reductions".

Peter Conway said that the CTU had always opposed unilateral tariff reductions. It was a flawed policy to assume that if New Zealand moved unilaterally, others would follow.

"It is important however", said Peter Conway, "that the Government in addition to the tariff freeze continues to support the manufacturing sector through research and development, promotion of NZ Made products, investment in skills, and industry strategies that support value-added products and productivity improvements".

Ends.

For further information contact Peter Conway at 04 802 3816, 0274 939 748 or peterc@nzctu.org.nz