Tariffs in key Asian markets are a significant burden on New Zealand kiwifruit growers a new report has shown.
According to a report by banking group ANZ, New Zealand pays NZ$1.5bn (US$1.15bn) annually in tariffs on the NZ$18.5bn it generates yearly in exports.
Kiwifruit growers in particular would benefit from future free trade agreements as on average tariffs cost them 67 per cent of their annual profits, the report stated.
Last year each grower paid on average NZ$50,000 in tariffs from a cash operating surplus of NZ$74,000.
Tariffs of 45 per cent in South Korea, 20 per cent in Taiwan and 13.3 per cent in China, stressed the importance of improving trade agreements.
New Zealand is currently involved in the Trans Pacific Partnership discussions to establish free trade between nine countries, including the US, Australia and Singapore.
Negotiations are also taking place with India, South Korea and Russia, stated the report.
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