Breaking Down the Impact of Non-Tariff Barriers on NZ’s Tech Exports

At NZTech, we’re proud to represent over 2,500 members across New Zealand’s fast-growing tech sector. Recently, we submitted insights to the Foreign Affairs, Defence and Trade Committee on the challenges non-tariff barriers (NTBs) pose to our exporters—highlighting what’s holding back the full potential of Kiwi tech on the global stage.

With 121,000 people employed in tech and $22 billion contributed to GDP, this sector plays a crucial role in New Zealand’s economy. In fact, tech exports have grown to become our third-largest export, generating $10.7 billion in 2023. Of particular note, software exports are booming, with growth rates exceeding 20% annually.

Our submission focused on the difference between digitally-enabled trade—where tech tools enhance traditional exports—and digital exports such as software, AI, and gaming, which require tailored support.

Key Non-Tariff Barriers Holding Back NZ Tech Exports

1. Talent Restrictions
   Limits on the movement of skilled workers needed to deliver tech solutions abroad create roadblocks for B2B digital exports.
2. Intellectual Property Protection
   Concerns around IP enforcement in certain markets are reducing opportunities for Kiwi companies and threatening the value of their innovations.
3. Local Presence & Repatriation of Funds
   Regulations governing the setup of local operations and repatriating profits create unnecessary financial burdens that slow exporters’ growth.
4. Digital Rules and Regulations
   Fragmented and ever-changing rules around data privacy, AI, and digital market access create compliance headaches for exporters, limiting their ability to scale.

A Strategy to Tackle NTBs and Boost Digital Trade

NZTech’s submission outlines a multi-pronged approach to help Kiwi tech businesses overcome these barriers:

• Upskill teams on the complexities of digital trade.
• Map out the landscape of current NTBs affecting our exporters.
• Engage internationally, contributing to global digital trade governance and advocating for fair trade rules.
• Address emerging NTBs as they arise to ensure businesses can respond proactively.

We’ve also called for stronger investment in understanding the unique needs of digital exporters. By participating actively in international trade discussions, we aim to secure binding trade rules that reduce regulatory fragmentation. One of our key recommendations is to maintain the WTO’s moratorium on duties for digital products to protect seamless, cross-border trade.

At NZTech, we believe that removing these barriers is crucial to enabling our tech sector to reach its full potential—helping Kiwi businesses grow, compete, and thrive on the global stage.