Iv. Trade Policies by Sector
New Zealand WT/TPR/S/216/Rev.1 Page 73 IV. TRADE POLICIES BY SECTOR (1) INTRODUCTION 1. Since its last Review, New Zealand has continued to lower its average level of tariff protection as well as continuing with deregulation. However varying levels of border protection and state involvement persist in certain sectors, which represent potential impediments to the efficient allocation of resources in the economy. 2. Agriculture, forestry, and fishing accounted for 6.2% of GDP and 7.5% of total employment in 2006/07, which indicates that agricultural labour productivity is substantially less than the level in the rest of the economy. However, agriculture's total factor productivity growth exceeded that of the wider economy and the sector is very competitive internationally. Consequently, it remains an integral part of New Zealand's economy, accounting for over 60% of its merchandise exports in 2007. The Government provides very little support to the sector with the Producer Support Estimate (PSE) being 0.7% (the lowest in the OECD); support is provided in the form of sanitary barriers, especially for poultry and eggs, disease and pest control, or relief against climate disasters. Average applied MFN tariffs in the sector have declined, and no imports are subject to non-tariff barriers, such as quantitative restrictions or licensing. During the period under review, all statutory marketing boards have been "disestablished" and their participation in commercial aspects such as marketing and export rights has been deregulated. "Industry good" activities previously undertaken by these boards are now managed as appropriate through producer-levy-funded industry organizations, established under the provisions of the Commodity Levy Act 1990.
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