Tariffs in New Zealand - NZIER working paper 2010/1

03 November 2010

The government has decided to freeze all remaining tariffs in New Zealand to 2015. The only reductions will come about through Free Trade Agreements. We use a dynamic Computable General Equilibrium model of the New Zealand economy to examine the economic impacts of this policy decision. The results show that retaining these tariffs has a very small negative impact on GDP. We also show that households are in fact very slightly better off if tariffs remain in place, due to the negative terms of trade effects associated with tariff removal. The overall conclusion is that the decision to freeze tariffs is not a big deal from an economic perspective.  Read more.

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