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A Comparison Of Tariffs Between Australia And New Zealand

1782 Words8 Pages

Abstract
Tariff is a tax levied by a government on imports or occasionally exports for purposes of protection, support of the balance of payments, or the raising of revenue. Thus the research assignment is based on a comparison of trade policy that is tariff rates between Australia and New Zealand. This research demonstrates how Australia and New Zealand have used tariffs which will show the effects, consequences and implications on both t countries’ Economic performance.

Introduction
A tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. Tariffs provide additional revenue for governments and domestic producers …show more content…

Thus this causes production efficiency loss. There are other costs associated with tariffs. Whenever New Zealand imposes a tariff, it always runs the risk of retaliatory action from the import source, which may impose its own tariffs or other trade barriers on New Zealand’s exports.
With these costs in mind, it could be expected that removing tariffs in New Zealand would generate gains in economic efficiency. Resources would be allocated to the areas in which New Zealand has a genuine comparative or competitive advantage, and less efficient (protected) industries would contract. (NZIER, 2010)
The impact of tariff concessions will vary for different building materials. For example, concessions will have a small direct impact on materials that are imported from countries with which New Zealand has a free trade agreement (FTA) in place, as a lower tariff rate will already apply. Based on the number of new dwellings consented throughout New Zealand in 2013, the total savings to the economy could be over $19 million per year. Tariff concessions would have a negligible impact on the profitability of domestic manufacturers because tariffs are already quite low, although downward pressure may be created on …show more content…

A., and S. P. Magee. 1978. The economics of special interest.

Bhagwati, J., and T. N. Srinivasan. 1980. Revenue-seeking: A generalization of the theory of tariffs. Journal of Political Economy (December). politics: The case of the tariff. American Economic Review (May).
Consultants, C. (1997). Import Tariffs and Protectionism (history). Retrieved November 10th, 2014, from http://www.chemlink.com.au/tariff.htm
Mundi, I. (n.d.). Australia - Tariff rate. Retrieved November 9TH, 2014, from http://www.indexmundi.com/facts/australia/tariff-rate
Mundi, I. (n.d.). New Zealand - Tariff rate. Retrieved November 11th, 2014, from http://www.indexmundi.com/facts/new-zealand/tariff-rate
NZIER. (2010). Tariffs in New Zealand. Retrieved November 11th, 2014, from http://nzier.org.nz/static/media/filer_public/53/67/536738d3-47d5-4aee-b322-897fad0bc443/wp_2010-1_tariffs_in_new_zealand.pdf
Tariff. (2014). Retrieved November 10th, 2014, from http://www.investopedia.com/terms/t/tariff.asp
TARIFFS. (n.d.). Retrieved November 11th, 2014, from

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