Otago Chamber of Commerce chief executive John Christie said significant opportunities existed for businesses of all sizes from the recently signed free-trade agreement (FTA) between New Zealand, Australia and the 12 Asean members.
It would not only benefit large exporters such as Fonterra, said Mr Christie, who attended the agreement's signing in Bangkok, but boost many businesses, including services, which made up 25% of New Zealand's trade with the Asean region.
For example, the 6000-page agreement allowed companies to operate in Asean countries as if they were local; New Zealand had most favoured nation status as an educational provider; setting up joint ventures would be easier and business visas had been extended from three to six months.
Mr Christie said the Asean agreement opened up further one of the world's most dynamic economic regions and New Zealand's third largest export market, but it was just one FTA among a flurry signed in recent years or close to being negotiated.
An FTA with India was awaiting ratification by the Indian Parliament, the first round of negotiations was about to start with Korea, delayed talks had restarted with Hong Kong, discussions with the TransPac parties - Chile, Brunei, Singapore, Vietnam , Australia, Peru and the United States - were due to start in the next few months, while an FTA with Malaysia should be completed next year.
Also nearing completion were FTA discussions with the Gulf Co-operation Council - Saudi Arabia, Kuwait, Qatar, Oman, United Arab Emirates and Bahrain.
"It's a huge agenda," Mr Christie said.
As well as taking advantage of the opportunities presented by the FTAs, Mr Christie said it was important companies told government negotiators where in the world they did business and what issues or problems they encountered so negotiators could try to smooth the path for them.
Mr Christie said many companies would benefit from FTAs but they might not consider themselves exporters.
IT companies, for example, might do development work in New Zealand and email programmes or software to off-shore customers.
Equally, he wanted to hear from New Zealand companies which might be threatened by products imported under an FTA, so-called sensitive sectors.
The potential impact on New Zealand of the Asean FTA was huge, with Fonterra saying it faced an average import tariff of 10% on its $2.2 billion worth of exports.
Next year, tariffs would start to be eliminated on some dairy products in some markets, but progressively lifted until 2020 when they would all be eliminated.
Tariffs on beef would be phased out from 2012 and eliminated by 2020, on sheep meat and wool from next year to 2016, and for forestry from next year to 2020.
Apple and kiwifruit exports would be gradually tariff-free from next year to 2016 and onions from next year to 2018 when the tariff in the Philippines would reduce from 40% to 5%.
Manufactured goods would benefit from improved direct access and by lower tariffs which, for products such as navigational equipment, static converters, air-conditioners, commercial refrigerators, toys, road sign equipment and switchboards, could be as high as 15%.
They will be eliminated by 2013.
The Ministry of Foreign Affairs and Trade said within 12 years, 99% of New Zealand's trade with Indonesia, Malaysia, the Philippines and Vietnam would be duty-free.
Businesses are invited to a seminar on the Asean FTA in Dunedin on April 8 at the Otago Museum.
At a glance
The Asean countries are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
A region of 566 million people, New Zealand exports to the region grew 121% to $4.6 billion between 2000 and 2008 while imports from Asean nations grew 244% to reach $7.6 billion over the same period.
The region accounts for $US1400 billion in global trade.
They're selling our milk here . . .
Fonterra already has an established dairy ingredients business in Asean countries but says it would benefit further from the Asean free trade agreement.
