How to use New Zealand’s free trade agreements for business growth

New Zealand has signed free trade agreements covering roughly 62% of its merchandise exports, yet a 2023 report found that only 36% of goods eligible for lower tariffs were actually claiming them. That gap means thousands of Kiwi businesses are paying more than they need to enter some of the world’s biggest markets.

Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra cost to you. We only include products and services that are relevant to the topic.

This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

36%
Eligible goods that claimed FTA preferences in 2023
RNZ / New Zealand Initiative

62%
Merchandise exports covered by FTAs
RNZ

14–17
Free trade agreements currently in force
Various sources

$594m
Early investments from Active Investor Plus visa (2025)
MBIE

The picture is clear: New Zealand has access to a wide network of trade deals, but the country is not using them as well as it could. Manufacturers tend to claim preferences most often, while services exporters and farmers are leaving savings on the table. The reasons range from complex rules of origin to simple lack of awareness. Here’s what you actually need to know.

What free trade agreements actually offer your business

Tariff elimination or reduction
Goods can enter partner markets at zero or reduced rates instead of the standard Most Favoured Nation tariff. The difference can be substantial — New Zealand quince exporters pay 0% to Taiwan under ANZTEC versus the usual 25%.

Rules of origin are the gatekeeper
Preferential rates are not automatic. Your product must meet specific rules of origin that prove it was substantially made or processed in New Zealand or another FTA partner.

Services exporters are underusing FTAs
FTAs lock in base levels of treatment for service providers — a New Zealand architecture firm forming a joint venture overseas won’t suddenly face stricter ownership rules. Yet services firms claim preferences far less than goods exporters.

Government support is expanding
Invest New Zealand opened in July 2025 to attract global capital, and the Elevate Fund added $100 million for high-growth startups. Trade missions to Vietnam, China, and India are opening doors for Kiwi exporters.

The central concept you need to understand is rules of origin.

Rules of Origin
The criteria used to determine where a product was actually made. They define whether a good qualifies for preferential tariff treatment under a specific FTA. If your product does not meet the rule, you pay the full tariff rate.

What I tend to notice is that many business owners assume a product “made in New Zealand” is enough. It often is, but the paperwork has to prove it according to each agreement’s specific formula. That’s where things get tangled.

The real cost of leaving tariff savings on the table

The 36% utilisation figure from the New Zealand Initiative report means nearly two-thirds of eligible exports are not getting the preferential rate they could. For a business shipping into a market where the MFN tariff is, say, 15% and the FTA rate is zero, that difference comes straight off the bottom line.

36% utilisation rate
Only 36% of goods eligible for preferential treatment under New Zealand’s FTAs actually claimed it in 2023. The remaining 64% paid higher tariffs unnecessarily.

The Productivity Commission chair David John King has been blunt about the problem. He said some agreements are too old, some too complex, and some are not delivering value for money. The rules of origin are often cited as the main barrier — they vary across agreements, and working out which one applies to your product can feel like a full-time job.

Consider a small exporter sending packaged honey to Thailand. Under one FTA, Thailand allows self-declaration of origin. Under another, it requires a certificate of origin from the Chamber of Commerce. Pick the wrong process or miss the paperwork, and your buyer gets charged the higher rate. That 15–20% cost difference can lose you the customer entirely.

Common errors that stop businesses claiming what they’re owed

Not knowing which FTA applies to your market

New Zealand has agreements with Australia, China, the UK, the EU, Korea, Japan, Malaysia, Singapore, Thailand, Vietnam, Hong Kong, Taiwan, Chile, Peru, Mexico, Brunei, Canada, and others. The list is long. A business shipping to multiple markets might be eligible under different agreements for different products. The Ministry of Foreign Affairs and Trade’s Tariff Finder lets you compare rates across FTAs, but many exporters never check it.

Assuming the freight forwarder will handle it

Most shipments are cleared by the importer or a freight forwarder at the border. If they do not know which FTA applies, they will default to the MFN rate. The exporter needs to flag the applicable agreement and provide the right documentation. A quick email with the correct FTA code and certificate can save thousands per container.

Treating all FTAs as the same

Each agreement has its own rules of origin, product-specific thresholds, and documentation requirements. Under the CPTPP, you might need a different certificate than under the NZ-China FTA for the same product. Using the wrong form is as bad as using none. The US Commercial Service guide notes that New Zealand has agreements with distinct terms — they are not interchangeable.

Ignoring services altogether

FTAs are not just for goods. They lock in treatment for services providers — consultants, architects, software firms, educators. MBIE’s trade data shows that services exporters are underutilising preferences significantly. A digital agency selling into CPTPP markets can benefit from the same certainty that goods exporters get, but most never file the paperwork.

How to claim preferential market entry in practice

Check your product’s HS code and qualifying rule

Every product traded internationally has a Harmonised System (HS) code. FTAs use these codes to define which goods qualify for reduced tariffs. The World Customs Organisation updates HS codes every five years — the last overhaul was in 2022. Your code might have changed. Use MFAT’s Tariff Finder to look up your product description and identify which FTA offers the best rate. Then check the specific rule of origin for that product under that agreement. Some require a percentage of local content; others require a specific manufacturing step to happen in New Zealand.

Get the right documentation in place

The paperwork varies by agreement. Some markets accept a self-declaration printed on your company letterhead. Others demand a certificate of origin issued by the New Zealand Chamber of Commerce or an approved body. Thailand, for example, allows self-declaration under one FTA but requires a Chamber certificate under another. Your importer can tell you what the destination customs authority expects. Keep a template for each FTA you use regularly.

Tell your importer or freight forwarder which FTA applies

This step is where most claims fall through. The person clearing your goods at the border needs to know the FTA code, the preference rate, and the correct document. Send this information with every shipment, not just the first one. If your product qualifies under multiple agreements, compare the tariff rates — they are not always the same. The lowest rate wins, but only if the documentation matches.

Plan for tariff phase-outs, not instant savings

Tariffs under FTAs are often phased out over several years. Large cuts typically happen five years after ratification and again after ten years. If you are entering a new market, check the phase-out schedule. You might want to delay your full launch until the rate drops. Conversely, if your competitor is already in the market paying the full MFN rate, you can price more aggressively once the tariff steps down.

→ Scroll right to see all columns

Source: RNZ / New Zealand Initiative
FTAMarkets CoveredKey Note
NZ-China FTAChinaActive since 2008; one of the most used agreements
CPTPP11 Pacific Rim countriesIncludes Japan, Canada, Mexico, Peru; strong for services
NZ-UK FTAUnited KingdomActive May 2023; phased tariff elimination
NZ-EU FTAEuropean UnionActive May 2024; comprehensive coverage
RCEP15 Asia-Pacific countriesIncludes China, Japan, Korea, Australia, ASEAN

Frequently asked questions about using FTAs for export growth

Can I claim FTA preferences on a shipment that already cleared customs?
Usually no. Preferential rates must be claimed at the time of entry. Some markets allow retrospective claims within a limited window, but it is not guaranteed. Always file the claim upfront.
What happens if my product contains components from multiple countries?
You need to meet the rule of origin, which often requires a minimum percentage of local content or a specific manufacturing process. Plurilateral FTAs like RCEP allow outsourcing within member countries while still qualifying.
Do I need a different certificate for every FTA?
Yes. Each agreement has its own certificate format, though some accept self-declaration. Check the specific requirements on MFAT’s Tariff Finder before shipping.
Are there penalties for getting the FTA claim wrong?
If you incorrectly claim a preference and customs finds out, you may be liable for the difference in duty plus interest or penalties. Accuracy matters — use a customs broker or trade compliance specialist if you are unsure.
Can a sole trader or small business use FTAs, or is it only for large exporters?
Any business can claim FTA preferences as long as the product meets the rules of origin. The paperwork is the same regardless of company size. Small exporters often benefit most because the tariff saving is a larger percentage of their margin.

The case for making FTAs work harder for New Zealand

The Productivity Commission has recommended that the government renegotiate older agreements and simplify the rules. In the meantime, the gap between what FTAs offer and what businesses actually use remains wide. New initiatives like Invest New Zealand, the Elevate Fund, and the Accelerated Export Capability Programme are designed to help close that gap, but the responsibility ultimately sits with each exporter to check their eligibility, file the paperwork, and tell their buyer which deal applies.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Reinventing the Kiwi Dream: Sustainable Business Models for a New Generation.

Sources and Further Reading

Building a Brand Kiwis Trust: Authenticity and Community Focus — Practical advice on how NZ businesses can strengthen their brand reputation in domestic and international markets.

RNZ (2023). Trade agreements still have potential to deliver benefits. 🔗

Ministry of Business, Innovation & Employment (2025). Promoting Global Trade and Investment. 🔗

New Zealand Trade and Enterprise. How to make the most of New Zealand’s FTAs. 🔗

International Trade Administration (US). New Zealand Trade Agreements. 🔗

Share this

Facebook
Twitter
LinkedIn
Email

Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted

Disclaimer

The content published on BritWealth.com is provided for general informational and educational purposes only and should not be considered financial, legal, insurance, tax, investment, or professional advice. You should always carry out your own research or seek independent professional guidance before making financial or business decisions.

Some content on this website may contain affiliate links. This means BritWealth.com may earn a commission if you click through and make a purchase, at no additional cost to you. As an Amazon Associate, BritWealth earns from qualifying purchases.

While we make reasonable efforts to keep information accurate and up to date, BritWealth.com makes no representations or warranties, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of any content on this website.

Any reliance you place on information found on this site is strictly at your own risk. BritWealth.com will not be liable for any loss, damage, or consequences arising from the use of this website or reliance on its content.

By using this website, you acknowledge and agree to this disclaimer and our terms of use.

Table of Contents

Share This

On Trend

Readers'
Top Picks

Navigating the Skills Gap: Bridging the Divide Between Education and Industry in NZ

New Zealand businesses are facing a critical skills gap, hindering growth and innovation. This divide between what educational institutions teach and what industries need requires a multifaceted approach, involving collaboration, curriculum reform, and upskilling initiatives. Understanding the Skills Gap in New Zealand The skills gap isn’t a monolithic problem; it’s a collection of specific shortages across various sectors. While precise figures fluctuate, reports from organizations like the Ministry of Business, Innovation and Employment (MBIE) consistently highlight demand for skilled workers in areas such as IT, healthcare, engineering, construction, and agriculture. Data from Statistics New Zealand provides wider insights into

Read More »

How to leverage digital marketing to grow your business in New Zealand

Digital marketing offers New Zealand businesses a powerful toolkit to reach local and global customers, increase brand awareness, and drive sales. This article explores key digital marketing strategies tailored for the unique New Zealand market, providing actionable insights, practical examples, and resources to help your business thrive online. Understanding the New Zealand Digital Landscape Before diving into specific tactics, it’s crucial to understand the New Zealand digital environment. New Zealand boasts a high internet penetration rate, with approximately 90% of the population actively online. Mobile usage is pervasive, with smartphones being the primary device for accessing the internet for

Read More »

The Kiwi Advantage: Leveraging NZ’s Strengths for Global Business Impact.

New Zealand offers a surprisingly potent package for businesses looking to make a global impact. It’s not just about stunning scenery and friendly locals; the country boasts a unique blend of factors, from its strong values and innovation ecosystem to its strategic location and robust regulatory environment, all adding up to a distinct “Kiwi Advantage” that can propel businesses to international success. This article delves into the specific strengths that New Zealand offers and how businesses can leverage them. New Zealand’s Values: A Foundation for Trust and Sustainability One of the cornerstones of the Kiwi Advantage is the country’s

Read More »

Innovation in Aotearoa: Fostering a Culture of Creativity and Problem-Solving

Innovation in Aotearoa New Zealand is not just about inventing the next big thing; it’s about fostering a culture where creativity and problem-solving are deeply ingrained in every aspect of business. It involves adapting to unique challenges, leveraging local resources, and finding innovative solutions that resonate with the Kiwi spirit of ingenuity and resourcefulness. The Kiwi Spirit: A Foundation for Innovation New Zealand’s relatively small population and geographic isolation have historically fostered a “make-do” attitude. This characteristic has inadvertently served as the foundation for innovative thinking. Businesses have learned to be resourceful, adaptable, and collaborative, traits that are now

Read More »

Decoding Consumer Behaviour in Aotearoa: Key Trends for 2024

Understanding New Zealand consumers is more crucial than ever in 2024. Businesses need to adapt to evolving values, economic pressures, and technological advancements to thrive in this dynamic market. This article delves into the key trends shaping consumer behavior in Aotearoa, offering actionable insights to help businesses connect with their target audience and achieve lasting success. The Cost-of-Living Crunch: Value and Affordability Reign Supreme Let’s face it, money is on everyone’s mind. The rising cost of living is significantly impacting consumer behavior in New Zealand. Kiwis are becoming increasingly price-sensitive, carefully evaluating purchases and seeking value for their money.

Read More »

From Startup to Scale-Up: The Secrets of NZ’s Fastest-Growing Companies

New Zealand’s startup scene is vibrant, but scaling up presents a unique set of challenges. From navigating a small domestic market to attracting and retaining talent, companies must be strategic and adaptable to achieve rapid growth. This article examines proven methods and real-world examples of New Zealand companies that have successfully transitioned from startups to scale-ups, offering insights into the secrets behind their success. Understanding the New Zealand Context New Zealand’s business ecosystem offers both advantages and disadvantages for companies looking to scale. On one hand, the country boasts a stable economy, a skilled workforce (albeit a smaller pool

Read More »