New Zealand’s Free Trade Agreements (FTAs) create valuable opportunities for exporters. This was the topic discussed in a recent webinar we hosted together with the New Zealand Ministry of Foreign Affairs & Trade (MFAT) for the members of Cosmetics NZ.

By using a Certificate of Origin (COO) when shipping products abroad, New Zealand exporters can enjoy reduced tariffs or even zero tariffs in certain circumstances. This translates into thousands of dollars in savings on each shipment, providing a cost advantage crucial for competing in local markets and expanding into new ones. These benefits aren’t automatic though. Understanding the role of the Certificate of Origin (COO) and how to navigate each FTA’s requirements is essential to capitalise on these opportunities and reduce costs.

Why Free Trade Agreements Matter:

FTAs streamline trade by removing tariffs and reducing administrative costs. For example, New Zealand exporters saved over $300 million in just two years through The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). However, tariffs are only part of the story. “The ‘rules of origin’ determine eligibility for preferential access, meaning businesses must pay close attention to documentation like COO to benefit fully from FTAs. Right now, we have 72.25% of our global trade covered by FTAs. We know that FTAs help businesses, removing costs through tariff elimination,” says guest speaker Hamza Haidon – Senior Economic Official to ASEAN + Manager of MFAT’s Trade Policy Engagement & Implementation Team.

Making the Most of FTAs:

For the cosmetics industry, there are key FTAs governing major markets for example Australia, the UK, South Korea, and Japan. Each market poses unique challenges for SMEs, and exporters must be proactive. “The New Zealand government has set ambitious goals for doubling exports, making it more important than ever to leverage these trade agreements,'” says Mr Haidon.

Carole Giles, TradeWindow Origin Product Manager highlighted an example where savings can be made if exporting cosmetic products to South Korea. Under the Korea-New Zealand FTA (KNZFTA), the tariff on certain New Zealand cosmetic products can drop from 6.5% to 0% with a valid Certificate of Origin. “For a shipment of 2,500 units at an RRP of $79, this not only saves $12,850 but increases success by landing more competitive products and increasing affordability in the local market,” says Ms Giles.

Using TradeWindow Origin for Compliance:

TradeWindow Origin simplifies Certificate of Origin compliance, helping exporters avoid documentation issues that could jeopardise the benefits of Free Trade Agreements. By using this 24/7 digital Certificate of Origin service, businesses can confidently expand globally, knowing they’re maximizing cost savings and meeting FTA compliance requirements.

Leveraging these Free Trade Agreements with the right documentation and tools, like TradeWindow Origin, can be the key to unlocking new growth and market access.

For more information or to see how TradeWindow Origin could help you to pay reduced tariffs, book a meeting with our team here.

Download the presentation below to see the cost savings for exporting to markets such as Australia and the UK: