Private Thai enterprises yesterday complained about New Zealand's stringent trade practices, which they say has resulted in slow two-way growth, in spite of a free-trade agreement (FTA) being in force for almost a year.

Thai Chamber of Commerce representatives yesterday expressed their disappointment to the Thai-New Zealand Closer Economic Partnership (TNCEP), urging steps to boost bilateral trade.

Chamber vice chairman Buntoon Wongseelashote said that although two-way trade had picked up somewhat, the growth was not particularly rapid or substantial, compared with the pre-FTA period. Buntoon is also on the subcommittee that monitors trade rules.

A chamber report showed that Thailand's exports to New Zealand have totalled Bt1.31 billion so far this year, up 13 per cent over the same period last year, while imports from New Zealand have amounted to Bt766 million, down 5.7 per cent.

"The free-trade agreement has not enhanced trading. Growth in two-way transactions has been slower than expected," he said, adding that a fall in the volume of bilateral trade showed the FTA to be ineffective in certain circumstances. He said the two countries needed to revise the agreement, in order to boost trade and facilitate market access.

Thai and New Zealand officials met yesterday to assess the progress of the TNCEP since it was initiated last July 1. Under the agreement, the two countries will decrease tariffs on certain products and hold talks on the service sector again within three years.

Thai exporters also called on New Zealand's government to reduce import tariffs more quickly for three main product categories - textiles, garments and shoes - in order to ensure market access for Thai products.

The FTA stipulates that tariffs on these three categories be eliminated altogether by 2015, but thus far New Zealand has lowered tariffs only marginally - from 19 per cent to 17 per cent.

"We [exporters] want to see them reduced to zero before 2015," said Buntoon.

The exporters also requested that New Zealand relax some of its stringent trade rules and sanitary requirements for Thai fresh produce.

New Zealand's stringent food standards are proving to be barriers to the FTA's success.

Horticultural products from New Zealand have flooded into Thailand, but Thai exports of fresh fruits and vegetables in the other direction have faced considerably slower growth.

Buntoon said Thai exporters wanted New Zealand to allow Thailand to export bamboo shoots, beans and coconuts that nation.

Currently, only five types of fresh produce are allowed to be exported to the New Zealand market: longans, lychees, mangosteens, ginger and unpeeled durian.

Thai businesses also want New Zealand officials to allow electronic magnetic compatibility testing to be conducted in Thailand.

At the moment, New Zealand wants Thai electrical appliances to be certified in Singapore as being up to international standards, which only adds to exporters' costs.

Thai electrical appliances account for only 1 per cent of the market in New Zealand. China and Australia control most of the market.

New Zealand, meanwhile, has asked for greater market access for its French fries, onions and pre-formed plastic sheets for pickup trucks.

Thai Trade Negotiations Department director-general Apiradi Tantraporn said both sides would try to cooperate more closely on dairy products.

Since New Zealand uses high technology in its cattle-breeding, the two countries could exchange technology or form a joint cooperate to re-export products to third countries.

The Commerce Ministry reported that in the first 10 months under the FTA, two-way trade figures had increased 25.9 per cent to total US$588 million (Bt22.54 billion).

Petchanet Pratruangkrai

The Nation