An FTA Opens the Door, but Other Barriers Can Still Block the Way
Free Trade Agreements (FTAs) can reduce or eliminate tariffs, but they don't guarantee that exporting will be straightforward or commercially viable. Product standards, certification, testing requirements and border procedures can significantly affect the cost, timing and value of an export opportunity.
Several Canterbury exporters have recently encountered unexpected non-tariff barriers, including large volumes of manually signed documentation, requests to alter official product classifications, and requirements to host overseas inspectors at considerable expense. These issues can quickly erode the benefits gained through tariff reductions.
Where to Go for Help
If you encounter a trade barrier, the first step is to contact Trade Barriers NZ, a government service that helps businesses identify, navigate and escalate market access issues. Enquiries are directed to the agency best placed to assist, including MFAT, NZ Customs, MPI and MBIE (Trade Barriers) (New Zealand Foreign Affairs & Trade).
Businesses can also access support through NZTE, whose in-market teams and expert beachheads can provide practical guidance on local regulations, certification requirements, customs procedures and market-specific challenges (New Zealand Trade & Enterprise - Home) (New Zealand Trade & Enterprise - FAQ's).
However, as a Business Canterbury member we can help navigate this for you.
What are Non-Tariff Barriers?
Non-tariff barriers (NTBs) are rules or processes other than tariffs that make exporting slower, harder or more expensive.
Examples include:
- Product testing and certification requirements
- Labelling and packaging rules
- Import permits and licences
- Quotas and import restrictions
- Local registration or representation requirements
- Repeated testing of already certified products
- Unclear or inconsistent customs procedures
Many of these measures serve legitimate purposes, such as protecting consumer safety, food security or the environment. However, they can also create delays, duplication, uncertainty and significant additional costs.
Why an FTA May Not Be Enough
Even when an FTA reduces tariffs to zero, exporters must still comply with the importing country's regulations.
Additional costs may include:
- Certification and testing
- Documentation requirements
- Factory audits and inspections
- Product modifications
- Freight and storage costs
- Local distributor or representative fees
- Customs delays
These costs can materially alter pricing, delivery timelines and competitiveness.
Common Examples Around the World
Most countries apply some form of non-tariff measures. Examples include:
- India: Bureau of Indian Standards (BIS) certification for certain regulated products.
- South Korea: KC certification for specified electrical and consumer products.
- European Union: CE marking requirements for various machinery and electrical products.
- United States: FDA registration, labelling and border requirements for many food products.
Check Before You Commit
Before finalising pricing or delivery commitments, ask:
- Which standards and certifications apply?
- Will overseas test results be accepted?
- Is local testing or a factory audit required?
- Do I need a local representative or importer?
- What will compliance cost?
- How long will approvals take?
- Who bears the cost if goods are delayed or rejected?
Understanding these requirements early can prevent costly surprises later.
How Business Canterbury Can Help
If you are facing unexpected certification requirements, repeated testing, customs delays, inconsistent border decisions, documentation challenges or unclear import regulations, let us know.
What appears to be an isolated issue may be affecting multiple Canterbury exporters. By understanding the issues businesses are encountering, we can help connect you with the appropriate support agencies, identify common challenges across sectors and, where appropriate, assist in escalating issues through the relevant government channels.
The earlier a problem is identified, the greater the opportunity to resolve it before it impacts sales, profitability or market access.
