Border taxes: should New Zealand be worried? NZIER Insight 7

A number of countries are talking about introducing border taxes to protect their local industry from imports from countries that have no or soft policies to tackle climate change. This is a risk to New Zealand’s exports, but overseas consumer perceptions of the sustainability of goods produced in New Zealand are a greater threat.

Recent policy decisions about New Zealand’s emissions trading scheme (ETS) and 2020 emissions target have sparked concern from those who believe New Zealand should be doing more to tackle climate change. One oft-mentioned (but little-analysed) possible consequence of New Zealand’s allegedly ‘soft’ climate change stance is the risk that New Zealand’s exports could face environmental trade barriers such as border taxes in the future.