List Of Contents

1. Report 1: Nature of International Trade,

Labour
Productivity
and
Comparative
Advantage2
2. Report 2: Role of WTO in New Zealands
Trade
with
the
rest
of
the
world5
3. Report 3: New Zealand's current trade
balance...17

Report 1: Nature of International Trade, Labour

Productivity and Comparative Advantage may
include:
(i) Why Countries Trade?
When countries trade with each other, they don't have the asset, or
capacity to satisfy their own specific necessities. By making and
destroying their private uncommon resources, countries can make a
overflow of there own product, and trade this for the advantages
they require. Today, overall trade is at the heart of the overall
economy and is accountable for an incredible piece of the change
and achievement of the current industrialized world. They may in
like manner be more smoothly open or basically more captivating
than by territorial measures made items. The era of items and
organizations in nations that need to trade is in light of two key
models:

Division of work
Specialization.

Divison of labour
A division of work means dividing creation into small, interconnected
errands, and after that allocating these assignments to differing
workers in light of their suitability to grasp the task adequately.

Specialisation
Specialization is the second foremost standard associated with
trade, and results from the division of work. Given that each master,
or each producer, is given a authority part, they are inclined to wind
up gainful providers to the general method of era, and to the
finished thing. In this manner, specialization can make further points
of interest in regards to capability and benefit. Worldwide
specialization is extended when countries use their uncommon
advantages for make basically a little extent of things in high
volume. Extensive scale assembling allows a flood of incredible to
be conveyed, which can then be conveyed. This infers that items
and resources must be imported from diverse countries that have
similarly focused, and conveyed surpluses they could call their own.

(ii) Comparative advantage

The breaking point of a firm or individual to create items and
organizations at a less complex open door cost than particular firms
or people. A close good circumstances gives an affiliation the
capacity to offer stock and organizations at a less requesting cost
than its competitors and perceive stronger arrangements edge. The
principle of close purposes of hobby is vital to determination of the
representation of exchange among countries. The speculation of
relative playing point is essentially the prospect that regardless of
the way that one substance may be ideal at making an OK over a
second component, it still may be useful to trade with the second
component in case they have lower open entryway costs. Close
inclination is most successfully elucidated with a specimen..
Productivit
y
possibilitie
s
Wheat
Motorbikes

India

New
Zealand

1000

250

600

300

India has a similar focal point in the generation of both Wheat and
MOTORBIKE's. In the given time span India can deliver four times as
much Wheat or twice the same number of Motorbike's. In the event
that India to commit 50% of now is the ideal time to every great, it
would create 500 Wheat and 300 Motorbike's. In the event that New
Zealand to commit 50% of now is the right time to every great it
would deliver 125 Wheat and 150 Motorbike's. This would be a
joined aggregate of 625 Wheat and 650 Motorbike's.
(iii) Factor Endowment and labour productivity
Factor endowment
In budgetary matters, a country's variable blessing is cleared up as
the measure of range, work, capital, and business open in a nation
and that can be mishandled for amassing. Nations having
unfathomable change of advantages, are a more prominent number
of prosperous than those with to a degree one, all particular things
being indistinguishable.

Regardless, the New World economies gained appealing blessings,

for instance, conductive soils, impeccable atmosphere conditions,
and suitable size and sparse peoples that unavoidably went under
the control of European pioneers who had an insignificant fiscal
excitement to try and point of interest from these new divulgences.
Pioneers were made a beeline for return high advantages and
impact by copying such economies' which in the end drove them
towards the methods for fiscal upgrades with distinctive degrees of
unevenness in human capital, wealth, and political impact
Labour productivity
Work productive measures, the measure of bona fide Gross
domestic product created by an hour of work. Making work point of
interest relies on upon three vital variables: meander and sparing in
physical capital, new building and human capital.
(iv) Protectionism
Protectionism is the budgetary method of confining exchange
between states through strategies, for occasion, forces on remote
things, prohibitive parts, and a mixture of other government
regulations which are required to permit sensible rivalry amidst
imports and stock and organizations made mainly. This methodology
separates from encouraged business, where government deterrents
to exchange are kept to a base.
A mixed bag of arrangements have been utilized to attain to
protectionist objectives. These include:

Export subsidies
Exchange rate
International patent systems
Employment-based immigration restrictions
Political campaigns advocating domestic consumption
Preferential governmental spending
Tariffs
Import quotas
Administrative barriers
Anti-dumping legislation
Direct subsidies
(v) Methods of Protection
4

The protection could be possible through' subsidies, standards,

willful fare restrictions, nearby substance principles, and fare
impetuses. Some of them are clarified beneath.
Subsidies - Appropriations are money installments made to
household makers by the administration. A sponsorship empowers
makers to decrease their expenses of creation and contend all the
more positively with outside contenders.
Quotas - A amount is a lawfully forced limit used to control the
amount of a decent that can be imported into a nation over a given
time.

Report 2: Role of WTO in New Zealands

Trade with the rest of the world may include:
(i)

Facilitates trade liberalisation through opening up

markets and removing trade barriers
The major focus of negotiations at the WTO is to facilitate trade
liberalisation through the opening of markets and the removal of
trade barriers.
Agriculture - Farming is a genuine building bit of the New Zealand
economy. The era and get ready of agrarian things, for instance,
meat, dairy things, downy, natural item, vegetables and wine
frequently make around 16 percent of NZ's yearly Gross domestic
product and use around 15 percent of the workforce. Plant things
make up more than 50% of New Zealand's stock charges.
Non-horticulture items - Non-agrarian things (overall called
present day things) cover an arranged extent of New Zealand
conveys. They join all created items (from materials, pieces of
clothing and footwear to steel and aluminum) and timberland and
fish things, chemicals, and minerals. Non-rustic things made up 46%
of New Zealand's toll receipts in the year to December 2005, worth
NZ$14.2 billion.
Services- Services are consistently portrayed as things which some
person can buy or offer yet can't pass on. They join a wide and
diverse extent of activities that are key to New Zealand's economy,
from master organizations, for instance, true blue, accounting,
5

outlining, and restorative organizations, to correspondence

organizations,
for
instance,
postal
and
data
exchanges
organizations, through to fiscal, direction, tourism and transport
organizations.
(ii) Clarifies and strengthens the rules used to govern
international trade
In worldwide trade, sponsorships can give producers from one
country an absurd point of convergence over those from
another. This disfigures trade, and infers that assignments
gave by one country can hurt the matter of another.
Governments general give money related sponsorship and
help to support business and industry. By covering some of a
creator's costs, a sponsorship can give a reenacted high
ground. Enrichments have been the wellspring of worldwide
trade disintegration for quite a while. Governments can turn to
countervailing commitments to adjust the playing point gave
by gifts to producers in the conveying country. Countervailing
commitments must be associated when an imported thing
preferences from an apportionment and the playing point
remained to imports of that thing by the enrichment can be
shown to be realizing harm to the family business.
Countervailing commitments are wanted to adjust the absurd
point of convergence that a sponsorship may give another
country's industry. Regardless, they don't address the unsafe
effect appointments can have where one country's admissions
to a third market are supplanted by those of another financing
countries.
(iii) Trade facilitation
WTO Individuals assented to dispatch trade help exchanges with the
purpose of enlightening and upgrading appropriate parts of Articles
V, VIII and X of the GATT 1994. These Articles oversee,
independently, chance of travel, costs and traditions joined with
importation and exportation, and appropriation and association of
trade regulations. This is incredibly convincing to making countries.
Article VIII of the GATT sees the necessity for streamlining import
and admission traditions and documentation. It doesn't, in any case,
give any obliged necessities around there. A couple of Individuals
have suggested that current general standards should be used to
unravel edge related documentation and procedures. Unraveling of
such requirements is obligated to particularly point of interest
6

making country exporters, particularly SMEs. Trade cures license

governments to give temporary help to neighborhood industry from
preposterous contention from abroad or a sudden surge in imports.
Governments have three sorts of exchange cure accessible to them:
Anti-dumping duties
Subsidies and countervailing measures (including fishing subsidies)
Safeguard action.
The WTO has secured standards to ensure that these instruments
are not badly utilized through ill-use. Dumping is the toll of a thing
at a lower expense than the thing's "common worth", i.e. the worth
regularly charged on the making country's business. The WTO's
Concurrence on Antidumping suits the utilization of antidumping
commitments when an examination has secured that items are
being dumped and that they are realizing or cripple to achieve
material damage to a private industry. The commitment is proposed
to adjust the purpose of interest oversaw through dumping. The
Antidumping Understanding gives low down norms on the rules WTO
Individuals must meet in making a dumping determination, and
choosing damage.
(iv) Trade Remedies
If any time, sudden surges in imports can basically strain private
business endeavors. In such cases, governments may apply
break secures as a wellbeing valve to shield neighborhood
producers from damage. Shields normally take the appearance
of commitment additions to higher than bound rates or
quantitative constrainments. They give private producers a
polish period for similarity. The WTO's Concession to Protects
sets out standards for the utilization of shield measures. Shields
may very well be joined when there is an extended level of
imports and there is totally serious mischief (or the danger of)
to the position of private industry made by those imports.
Shields must be joined on a non-particular (most bolstered
nation) introduce and be sensibly changed while basically. WTO
Individuals applying shields have a commitment to reimburse
distinctive Individuals whose trade is affected.
(v) Non-tariff barriers
Duty are evaluations on stock being conveyed beginning with one
country then onto the following. The effect of these measures is
to raise the expense of imported stock and make them less
forceful in the importing country, to the insult of exporters in
the conveying country and buyers in the importing country. The
7

prompt and underhanded costs of controlling such certification

may be similar to or surpass the wage got. Non-obligation
impediments (NTBs) have a practically identical effect to
obligations by growing the consistence costs of getting a thing
into an abroad market. A NTB is a measure other then an
expense which guarantees neighborhood industry. Not all NTBs
are "terrible" some are considering genuine destinations, for
instance, the protection of human wellbeing. Diminishing tolls
and NTBs is ideal for both those offering and those obtaining an
it.
(vi) Rules of Origin
For a trading country like New Zealand, understanding where a thing
is "from" can be critical. It can center, for occasion, whether the
thing can be imported commitment free in light of the way that it is
"made" in a making country, or whether it is subject to import
segments when it is conveyed. The World Exchange Association and
the World Traditions Association are working with countries as far
and wide as could be allowed to make around the globe 'Rules of
Starting point' - criteria that countries can use to make sense of
where a thing is made. Various things moving around the globe in all
inclusive trade consolidate materials or parts from more than one
country, and may moreover have been delivered or taken Motorbike
of in more than one country. This mixture of sources can raise
inconveniences for importing countries. Choosing a thing's
beginning stage can matter for different reasons,
Principles of source (ROOs) are the criteria by which an item's nation
of beginning can be resolved. Starting now there is no course
of action of ROOs that are seen around the globe. Shakiness
about whether things will meet starting necessities can be a
honest to goodness obstruction to trade. There is similarly the
probability that measures may be altered or controlled and
used as a protectionist measure.
The Agreement on Rules of Origin
The Agreement on Rules of Origin was made in the midst of the
Uruguay Round, with the recommendation of making a
coordinated ROO structure to cure this situation. The piece of
the Specialized Board of trustees on Standards of Beginning,
some bit of the World Traditions Association, is to examine
particular specific issues developing in the ordinary association
of ROOs. The particular chamber then gives advising
conclusions on suitable plans. The committee on standards of
8

beginning stage can similarly request the particular bulletin

gathering to refine or far reaching its work and, infrequently,
develop new techniques. All WTO people have the benefit to
participate in both these sheets of trustees. It gives that the
country of origin is the "either the country where the colossal
has been totally gotten or when more than one country is
concerned in the production of the immense, the country where
the last noteworthy change has been finished." The principles
of beginning stage should similarly be target, obvious and
relentless and not trade restrictive.
(vii) Customs Valuation
With a particular final objective to register rates of commitment on
stock, customs powers need to have the ability to work out the
estimation of the items. Without the plan of sensible, uniform
and unbiased principles gave by the World Exchange
Association admission to customs valuation, exporters could be
bamboozled commitment on their tolls. Customs valuation is
the procedure used by conventions powers to center the
estimation of the imported items for the reasons of processing
the right import commitment. The conventions worth is
fundamentally the trade regard that a shipper pays for the
stock, however can join other additional costs, for instance,
commission, packaging and eminences. In case the wrong
regard is joined, exporters could be tricked commitment. On
the off chance that exporters are dubious how the value will be
figured, the matter of conveying gets the opportunity to be
surprising. Poor customs valuation systems can go about as a
limit to trade, since exporters need to make certain the
measure of commitment their items will pull into pick whether
an advantage could be made by conveying stock to particular
markets.
Agreement on Implementation of Article VII of the GATT
1994
The WTO assention concerned with customs valuation is the
"Simultaneousness on Execution of Article VII of the GATT 1994".
The Understanding is insinuated here as the simultaneousness on
conventions valuation. The assention is proposed to propel a
sensible, uniform and impartial structure for the valuation of stock
for customs purposes. The simultaneousness on conventions
valuation has key impact in ensuring that the right commitments
are paid on imports, rather than commitments in light of minimum
9

qualities. A key objective of the admission to conventions valuation

is to ensure that the reason for valuation of items for customs aims
is, to the best degree possible, the trade regard (the expense truly
paid or payable for the stock when sold in the importing country).
Customs associations have the benefit to request extra information
in circumstances where they doubt the exactness of the declared
estimation of the items. In case customs powers are still in
vulnerability,
regardless
of
the
extra
information,
the
comprehension issues them different decisions to ensure the
declared conventions worth is correct or sensibly conform. The
going hand in hand with options are joined in a particular request:
(a) Transaction value of identical goods: The estimation of
unclear stock can be used to focus the trade regard if the items are
the same in all respects. This consolidates physical qualities, quality
and reputation, era in the same country as the stock being regarded
and creation by the creator of the same items being regarded. If
these conditions are met, slight differences in appearance of stock
don't basically block the items being used as a piece of a
relationship to discover the trade regard.

(b) Transaction value of similar goods: Traditional powers can

in like manner use the trade estimation of similar stock when the
trade estimation of imported items is in uncertainability. Traditions
powers have reaction to this option if the near items:
closely be like the goods being appreciated in terms of part
equipment and type
are talented of the same functions
are commercially the same with the goods being appreciated
are being sold to the same country of introduction as the goods
being valued.
(c) Deduction value: In case there is still instability after the more
than two choices have been joined, the conventions worth can be
determined on the reason of the unit cost at which the imported
items (or vague or equivalent stock) are sold to a detached buyer in
the best aggregate sum in the country of importation. The best
number of units sold at one expense identifies with the best
aggregate sum. To center the best aggregate sum, all arrangements
at a given expense are taken together and the entire of each and
every one of units of items sold at the expense differentiated and
the total of each and every one of units of stock sold at some other
expenses.
10

(d) Computed value: Enrolled quality chooses customs regard on

the reason of the cost of making of the items being regarded,
notwithstanding an entirety for the advantage and general expenses
ordinarily reflected in arrangements from the country of exportation
to the country of importation of stock of the same class or kind.
Enlisted worth is the total of era costs notwithstanding advantage,
general and diverse expenses.

(e) Fall-back method: On the off chance that instability still stays
about the right conventions regard in the wake of encountering the
past decisions, conduct quality may be determined using sensible
means on the reason of data open in the country of importation.
They include:
the sale cost of goods made in the country of import
a structure that provide for customs purpose the senior of two
unusual values
the price of goods in the domestic market of the country of
exportation
the cost of production (other than the computed values determined
for the identical or similar goods)
the fee of goods for the export to a country other than the country
of importation.
Customs valuation in New Zealand- The simultaneousness on
customs valuation is joined into New Zealand law by the
second schedule to the Traditions and Extract Act 1996. The
New Zealand Traditions Administration is the essential
government association responsible for execution of this order
Where the amount of duty payable on goods is a set percentage of
the customs value of the goods. For example, $1 duty would be
payable if an ad valorem tariff of 5% was levied on a compact disc
valued at $20.
A minimum transaction value that customs officials use to calculate
the customs duty for a product, regardless of whether this is higher
than the real transaction value.
(viii) Pre-shipment Inspection
Importing items from a couple of countries is perhaps a hazardous
business for all get-togethers concerned. To prevent coercion and to
guarantee shippers and exporters, some making countries use preshipment examination by free workplaces to confirm that the worth,
11

quality and sum are precisely decided on shipment unobtrusive

components. Pre-shipment examination is the practice by councils
of using self-ruling exclusive organizations to look at stock before
these are exchanged to diverse countries. The stock are checked to
ensure that the worth, quality and sum are adequately
demonstrated on the shipment purposes of hobby. Some making
countries have made presentation of a clean report by a preshipment appraisal office a condition for clearing imports through
conventions.
Importance of pre-shipment inspection
Pre-shipment assessment is important in two ways. Firstly, it is used
by lawmaking bodies of making countries to compensate for any
inadequacies in the administrative structures. Pre-shipment audit is
a way to deal with deflect business deception furthermore
conventions
commitment
evasion.
Besides,
pre-shipment
examination gives exporters and shippers extra sureness that the
items match what is resolved in the business contract. This
accordingly rouses more important trust in trading with making
countries.
The agreement on pre-shipment inspection
The agreement to Pre-shipment Examination sees the need, of
making countries particularly, to check the quality and sum or
expense of imported items. Pre-shipment activities are portrayed as
activities relating to the affirmation of the quality, sum, worth
(checking coin change scale and cash related terms) or the
conventions gathering of stock to be conveyed to the locale of the
customer part.
Non-discrimination
People using pre-shipment evaluation are obliged to ensure preshipment examination activities are finished in a non-one-sided way.
Strategies and criteria used as a piece of finishing the activities
should be objective, and joined on an equal reason to all exporters
affected by such activities. Customer people moreover have a
promise not to apply national regulations that result in less perfect
treatment to examined items diverged from private things that are
the same. Conveying countries are furthermore obliged to ensure
that their laws and regulations relating to preshipment evaluation
activities are joined in a non-biased manner.
(ix) Intellectual Property
12

People can be given phenomenal rights to keep others from using

their improvements, plots or distinctive signs. These rights offer
rising to a kind of property - "learned" property - which touches base
in a blended sack of structures. The best known structures are
copyright (covering books, painted manifestations, films or some
other representation of an idea), licenses (for advancements) and
trademarks (under which brand names and logos can be enrolled).
The objective of ensured advancement affirmation is to strike an
amicability amidst improvement and the trading of development, to
preference both producers and customers, and to overhaul
budgetary and social welfare.
Difference between intellectual property rights & ordinary
property
Ownership of them is not prohibitive in light of the fact that they are
incomprehensibly reproducible. For example, a proprietor of
an auto can keep others from using it, yet it is troublesome
for the creator of a tune to keep someone else from singing
it. On the off chance that the auto is sold or pummeled, the
proprietor no more has responsibility for, however a dreadful
open execution of a tune does not pummel it as a remarkable
work. Their value lies in the information and creative energy
they contain. Books are worth fundamentally more than the
paper on which they are printed. Also, an item framework
has a higher worth than the metal and plastic of the plate on
which it is sold. An incredible piece of the value added to
ensured development reflects the cost of examination, plan
and testing included in making stock, (for instance, in
pharmaceuticals and high advancement things). Various
things that have been traded as low-advancement stock or
things in the past may now contain a higher degree of
improvement and plan in their quality.
Necessity of International agreement on intellectual
property necessary
Considerations and learning have transformed into an inflexibly
discriminating bit of business, yet the courses in which authorized
advancement rights are protected and approved movement from
country to country. Era of fake clothing, PC programming, music and
highlights, for case, in countries with settle for what is most helpful
choice of certification reasons strain in overall relations. The TradeRelated Aspects of Intellectual Property Rights (TRIPS) Agreement
sets out slightest standards of protection from imitating that are
13

joined generally to diminishing these weights. The World Trade

Organization (WTO) Agreement on TRIPS has restricted the
qualifications in the way these rights are guaranteed around the
globe by bringing them under fundamental worldwide norms anyway it is far from comprehensive.
Trade law and free trade agreements
The Trade Law Unit inside the Legal Division of the Ministry gives
legitimate guidance and representation in diverse overall trade,
including World Trade Organization (WTO) organizing rounds,
WTO question settlement methods, and in Free Trade
Agreement (FTA) plans. The Unit moreover gives admonishment
on the consistency of family New Zealand approach with our all
inclusive trade law duties.
Free Trade Agreements
Furthermore sharing in World Trade Organization (WTO) exchange
rounds, New Zealand proactively looks to upgrade trading
conditions with some of our genuine trading accessories. The
Unit in like manner gives the New Zealand lead in the
exchanges on legitimate and institutional issues in every
assention. These fuse the inquiry settlement standards like
those in the WTO structure, the structure and consistency of
the assention, and the general acquisitions that apply over the
comprehension.
(xi) Transparency
Straightforwardness expect a discriminating part in the assention.
There are specific responsibilities on people to ensure that
information is open to contributed people so they can take after
examination requirements. For example, the comprehension
communicates that people may ensure that when at initially came
to by exporters, pre-shipment examination components provide for
the exporters a summary of all the information key for the exporters
to agree to appraisal requirements. Protection precepts do make a
difference in any case, keeping evaluation workplaces from
requesting purposes of enthusiasm from authorized techniques,
internal costs, advantage levels and contracts amidst exporters and
their suppliers. Under the assention, all laws and regulations relating
to pre-shipment examination practices must be appropriated
expediently by people.

14

(xi) Transparency in the World Trade Organisation

People, organizations and governments included in exchange and
venture need to know however much as could reasonably be
expected about the states of exchange the nations they need
to manage. Expanded straightforwardness is a highlight of
numerous WTO understandings.
Policies that aid certainty and predictability in trade
Trade policy reviews
Policies that aid certainty and predictability in trade
The following policies aid certainty and predictability about trading
conditions:
Publication: Governments are obliged to publish relevant laws
and regulations.
Notifications:. Every time an organization familiarizes or reveals a
change with specific measures, procedures or laws that may
have a basic effect on trade, they have to light up the WTO and
individual people and give purposes of enthusiasm of how these
laws are being joined. WTO people are allowed a sensible period
to take off comments on these proposed upgrade.
National enquiry points: Under a few assentions, a solitary
purpose of contact is created, so other WTO individuals can
undoubtedly ask for data and documentation. The national
enquiry point is obliged to answer any sensible appeals. Enquiry
focuses are generally administrative offices, however their
obligations can likewise be appointed to a private body.
New Zealands enquiry points are: Technical barriers to trade
(technical regulations) - Standards New Zealand; sanitary and
phytosanitary - Ministry of Agriculture and Forestry.
Trade policy reviews

For each review two documents are prepared: a policy statement by

the government under review and a detailed report written by the
WTO secretariat.
A assembly is then held, typically permanent two days, in which all
members are given the chance to question the state under review
on precise aspects of its trade strategy. The minutes of the Trade
Policy Review Bodys gathering and answer to the question are
available by the WTO secretariat soon afterwards.
In the Uruguay Round courses of action, General Agreement on
Tariffs and Trade (GATT)/WTO people assented to set up typical
reviews of part countries' trade approach. At first, as GATT, they
15

focussed on items trade however in 1995, with the arrangement of

the WTO, their augmentation was reached out to consolidate
organizations and secured advancement. The reviews focus isolated
trade game plans and practices. They moreover consider the
countries' more far reaching money related and developmental
needs, their methodologies and objectives, and the outside
monetary environment they confront.
The review have two broad results: (i) they allow other WTO
member to better appreciate a countrys trade policy and
conditions, and (ii) they provide criticism to the reviewed country on
its show and give confidence them to follow WTO rules and
discipline more closely.
The frequency of reviews depends on the countrys size
The four biggest trader (the EU, US, Japan and Canada) are
examine roughly once every two years
The next sixteen countries in conditions of their share of world
operate are review every four years
The residual countries (including New Zealand) are review around
every six years, with the opportunity for a longer period for the
least-developed countries.
(x) Dispute Settlement
Involvement of New Zealand in World Trade Organisation
disputes includes:
Scope of the disputes system
The dispute process
Current disputes
Current WTO disputes with New Zealand as a Principal
Complainant
Indonesia - Import Restrictions on Agricultural Products
Current third party participation
US - Tuna Dolphin
US - Mandatory Country of Origin Labelling (MCOOL)
Australia-Tobacco
New Zealands involvement in previous disputes
Previous WTO disputes with New Zealand as a Principal
Complainant
Previous third party participation
One of the real accomplishments of the Uruguay Round of WTO
arrangements was to situated set up a coupling strategy for
determining exchange debate emerging between individuals. WTO
16

individuals concur not to make one-sided move when they think

their rights have been disregarded. Rather they put their grievance
through the WTO debate settlement framework and consent to
maintain its standards and discoveries.
Scope of the disputes system
The WTO system deals with all trade disputes arising from any of
the agreements contained in the Final Act of the Uruguay Round
including agreements on:
Tariffs and Trade (GATT) relating to access to the market for
goods
Agriculture (including export subsidies and support to domestic
producers)
Sanitary and Phytosanitary Measures (for human, animal or plant
life or health)
Technical Barriers to Trade (ensuring that technical regulations,
testing or certification procedures do not create unnecessary
barriers to trade)
Anti-Dumping
Subsidies and Countervailing Measures
Safeguards
Rules of Origin
Import Licensing and Customs Valuation
Services, relating to access to the market for services
Intellectual Property (such as trademarks, copyrights and
patents)
(xii) WTO negotiations to enable New Zealand to pursue high
standards in trade
Overview
New Zealand is an element individual from the World Trade
Organization (WTO), the all inclusive body that coordinates world
trade. The WTO Agreements are a plan of game plans that make
standards and rules regulating worldwide trade stock and
organizations and to which New Zealand is a get-together. WTO law
serves to ensure that organizations don't outlandishly abuse items
and organizations of other WTO Members or mangle worldwide
trade.
Principles of the WTO
The National Treatment principle provides that countries should
provide the same treatment to foreign goods and traders as they
do to domestic goods and traders; and
17

The Most Favoured Nation principle provides that countries

should not discriminate between the goods and traders from
different countries.
A detailed explanation of the WTO system and its law is available
from the WTO website.

The Role of the Legal Division

The Trade Law Unit inside the Legal Division gives legitimate
sponsorship to New Zealand's collaboration in the WTO, including
the exchanges under the WTO Doha Development Round.
It moreover gives legal advice to other government divisions to
ensure consistency of New Zealand's private methodology and
sanctioning with our duties under overall trade law. The Unit is
moreover accountable for assessing the consistency of other
countries' trade and fiscal measures with their WTO obligations,
particularly where these measures may achieve harm to New
Zealand's trading diversions. As a bit of this process, the Unit drives
New Zealand's commitment in WTO face off regarding settlement
strategies.

18

Report 3: New Zealand's

balance may include:

current

trade

(i) Value of Exports

The term fare means sending the products and administrations out
of the port of a nation. The merchant of such stock and
organizations is called an "exporter" who is arranged in the country
of fare though the abroad based purchaser is alluded to as a
"shipper". In International Trade, "fares" alludes to offering items
and organizations transformed in the home country to different
markets.
New Zealand has a business economy that depends essentially on
overall trade, basically with Australia, the European Union, the
United States, India, South Korea and Japan. It has just little
assembling and innovative divisions, being emphatically centered
tourism and key business endeavours, for instance, cultivating. Freemarket changes over late decades have cleared various obstructions
to remote financing, and the World Bank in 2005 commended New
Zealand just like the most business cordial nation on the planet,
before Singapore.
In 2012, 70 percent of all products sent out were essential items and
25 percent were produced merchandise. Milk powder, margarine,

19

and cheddar keep on being New Zealand's most elevated quality

fare, representing 25 percent of merchandise traded.

Main export commodities

Milk powder, butter, and cheese
Meat and edible offal
Logs, wood, and wood articles(1)
Crude oil
Mechanical machinery and equipment
Fruit
Fish, crustaceans, and molluscs
Wine
Total all commodities

2012
2007
NZ$(million)
11,625
6,454
5,114
4,609
3,060
2,203
2,023
475
1,865
1,879
1,587
1,227
1,367
1,153
1,177
698
46,688 34,934

Ten Countries Which Buy Most Of Nz Exports

In the year ended June 2009 these ten countries bought most of
NZs exports:

Information Source: Global New Zealand international trade,

investment, and travel profile: year ended June 2009. Wellington:
Statistics New Zealand, 2009. Table Answered: 21 April 2010.
20

The below chart shows the exports for year 2011-2013.

Comparably the export was high as 4.43 Billion NZD in August 2012
and low as 3.29 Billion NZD in October and September 2013.
From 1951 until 2013, New Zealand Exports averaged 1.1 Billion
NZD reaching an all-time high of 4.7 Billion NZD in April of 2011 and
a record low of 0.0 Billion NZD in August of 1954.
(ii) Value of Imports
The word "Import" is copied from the word "port," since supplies are
often shipped via boat to overseas countries. Countries are most
likely to trade in goods that home industries cannot produce as well
or cheaply, but may also introduce raw materials or goods that are
not on hand within its borders. For example, many countries have to
import oil because they either cannot produce it domestically or
cannot produce enough of it to meet demand.

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Petroleum and petroleum products are New Zealands largest

imports, followed by mechanical machinery and equipment.
Australia contributes 19 percent of New Zealands total import
value, followed by India with 15 percent of imports (taken from
statistics, nz).

The above graph shows the imports of the year 2012 and 2013. It
reached a maximum of 4.62 Billion NZD in Aug 2013.

22

The above graph shows imports from the year 1960 2013. It was
almost zero till 1974 and started increasing gradually.
(iii) Current Account Balance
New Zealand Current Account
New Zealand record a Current report deficit of 837 NZD Million in
the fourth quarter of 2013. Current Account in New Zealand
averaged -1281.02 NZD Million from 1987 until 2013, reaching an
all-time high of 354 NZD Million in the third quarter of 2009 and a
record low of -4298 NZD Million in the second quarter of 2008.
Current Account in New Zealand is reported by the Statistics New
Zealand.

The above figure shows the current account from 2008 until 2013.
23

The above chart shows the current account from 1987 till 2013.
(iv) Underlying factors includes:
Exchange rate movements
It is the progressions in quality between monetary standards, the
changes in worth between coinage that can bring about misfortunes
to organizations that import and fare products and to speculators.
The costs that exporters get in New Zealand dollars are likewise
impacted by changes in the swapping scale. As seen from Figure
underneath, the estimation of the New Zealand dollar has been
unpredictable since it was glided in 1985, which is another
wellspring of vulnerability for exporters. As a rule however, the
Costs of production
Land
Land comprises of simple surface of area as well as incorporates all
the characteristic sources, for example, seas, mountains, woods and
so on. Along these lines area is a significant some bit of creation
which supports in the transforming of stock and organizations in
confined or the other.
Labour
Work alludes to the demonstration of working for some fiscal
advantages against physical and mental movement. It doesn't
embody any relaxation action. It doesn't contain any entertainment
activity. It joins the organizations of a generation line worker, any
master workers, for instance, creators, experts, educators, lawyer et
cetera. As needs be work structures a key piece of planning.
24

Capital
Capital means all human-made materials, for example, devices,
equipment's, base, apparatus, seeds, plants, methods of
transportation, for example, rail, street and air and so on. Human
capital is more indispensable than the physical capital since without
human's obstruction the materialistic capital can't be used viably.

Intermediate goods

They are used as inputs or sections inside the era of distinctive

stock. Midway stock are joined into the production of finished things,
or what are termed last items. Not at all like last stock, transitional
items will be further taken Motorbike of before sold as last stock

Non tariff barriers

Exporters regularly observe that it is duties as well as different

issues, for example, traditions tenets or import guidelines, which
piece them from offering items in different nations.
These assumed non-levy hindrances are not kidding to the point
that they are especially under plan inside the World Trade
Organization Doha Round. The fact of the matter is to ensure that
such impediments are subjected to fruitful principles and, where
possible, diminished or abstained from.
The top 10 barriers faced by New Zealand exporters, in order of
frequency, are identified as:
Standards and certification
Customs procedures
Food safety or health requirements
Distribution constraints
High internal taxes or charges
Import quotas or prohibitions
Inadequacies in intellectual property protection
Motorbike go handling and port procedures
Subsidies or tax benefits for domestic firms
Import licensing.
References
Trade
Protectionism
[Online]
Available
from:
http://www.economicsonline.co.uk/Global_economics/Trade_protectio
nism.html (Accessed on 11/04/2015)
25

Economics
Concept
[Online]
Available
from
:
http://www.aeaweb.org/students/WhatIsEconomics.php (Accessed on
09/04/2015)
WTO trade rules and remedies [Online] Available from:
http://www.mfat.govt.nz/Trade-and-Economic-Relations/NZ-and-theWTO/Strengthening-trade-rules/0-trade-remedies.php (Accessed on
12/04/2015)
Strengthening
trade
rules
[Online]
Available
from:
http://www.mfat.govt.nz/Trade-and-Economic-Relations/NZ-and-theWTO/Strengthening-trade-rules/0-subsidynegs.php (Accessed on
13/04/2015)
Non
tariff
barriers
[Online]
Available
from:
http://www.mfat.govt.nz/Trade-and-Economic-Relations/NZ-and-theWTO/Strengthening-trade-rules/0-non-tariff-barriers.php (Accessed
on 14/04/2015)
Trade
and
Economic
relations
[Online]
Available
from:
http://www.mfat.govt.nz/Trade-and-Economic-Relations/NZ-and-theWTO/Strengthening-trade-rules/0-rulesorigin.php
(Accessed
on
11/04/2015)
Trade
and
Economic
relations
[Online]
available
from:
http://www.mfat.govt.nz/Trade-and-Economic-Relations/NZ-and-theWTO/Strengthening-trade-rules/0-customsval.php
(Accessed
on
12/041/2015)
Strengthening
trade
rules
[Online]
Available
from:
http://www.mfat.govt.nz/Trade-and-Economic-Relations/NZ-and-theWTO/Strengthening-trade-rules/0-preship.php
(Accessed
on
15/04/2015)
New
Zealand
Export
stats
[Online]
Available
from:
http://www.stats.govt.nz/browse_for_stats/snapshots-of-nz/nz-inprofile-2013/exports.aspx (Accessed on 12/04/2015)
New
Zealand
exports
[Online]
Available
from:
http://www.tradingeconomics.com/new-zealand/exports
(Accessed
on 10/04/2015)
http://www.stats.govt.nz/browse_for_stats/snapshots-of-nz/nz-inprofile-2011/imports-exports.aspx
26

Trade Law and free Trade Agreement [Online] Available from:

http://www.mfat.govt.nz/Treaties-and-International-Law/02-Tradelaw-and-free-trade-agreements/Free-trade-agreements.php
(Accessed on 12/04/2015)
Trade
and
Economic
Relations
[Online]
Available
from:
http://www.mfat.govt.nz/Trade-and-Economic-Relations/NZ-and-theWTO/Strengthening-trade-rules/0-transparency.php (Accessed on
15/04/2015)

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