Key export wool and wood products will have tariffs removed under new trade deal. File picture. Photo: RNZ / Nate McKinnon
Tariffs have been removed on hundreds of wool and wood products in a "groundbreaking" trade deal with Costa Rica, Iceland, and Switzerland, says Trade and Agriculture Minister Todd McClay.
"The Agreement on Climate Change, Trade and Sustainability (ACCTS) opens up commercial opportunities for New Zealand businesses by focusing on trade in sustainable goods and services. Crucially for New Zealand, it will see tariffs removed on key exports including 41 wood products and wool.
"It will also remove tariffs on hundreds of other products, including wool fibre, slag wool for insulation, recycled paper along with energy saving goods like LED lamps and rechargeable batteries.
"In addition, it supports New Zealand's renewable energy sector by establishing rules to prevent harmful fossil fuel subsidies; and sets guidelines for eco-labelling.
"ACCTS will open new markets for New Zealand exporters and grow in benefit over time as more countries join."
This trade agreement was the first New Zealand had concluded with these countries outside of the World Trade Organisation, McClay said.
"It is only through a strong economy that we can lift incomes, reduce the cost of living and provide Kiwis the public services they deserve. The ACCTS deal helps to achieve this."