On this page
SMEs’ valuable contribution to New Zealand
Small and medium-sized enterprises (SMEs) make a significant contribution to the New Zealand economy:
- accounting for 97% of all New Zealand businesses
- employing more than 679,000 people or 29.3% of all New Zealand employees
- generating over a quarter of New Zealand gross domestic product.
Support for SMEs
The DEPA’s commitments provide a level playing field. They reduce barriers to entry and provide opportunities for SMEs to participate effectively in global digital trade. Specifically, Module 10 [hyperlink] sets up a framework for cooperation, enabling New Zealand and other DEPA Parties to share ideas and promote our businesses to one another.
New Zealand and other Parties are encouraged to exchange information and best practices to improve SMEs access to capital and credit; participation in government procurement opportunities; and participation in platforms that can help link them with international suppliers, buyers and other business partners.
Parties are required to make information on the DEPA freely available on a public website so that it is easy for SMEs to access.
The DEPA calls on Parties to host a Digital SME Dialogue to promote the DEPA to SMEs and encourage collaborative initiatives, which help create international links between SMEs. New Zealand organised the first DEPA SME FinTech Dialogue on 8 April 2022. There were over 100 participants from DEPA Members as well as other governments and their industries. Key messages from business speakers emphasised the value in deepening collaboration, seeking to reduce issues (including through streamlining regulatory impediments, greater regulatory dialogue and government-private sector engagement) and enabling innovation. The Dialogue achieved the objective of deepening connections among the Parties and their FinTech sectors, with one speaker commenting that the Dialogue had helped to create a “DEPA Community”.
Ensuring cross-border data flows
The DEPA, together with the DEPA Protocol, commits Parties to allow for the free flow of data across borders, and to ensure requirements to localise data are not imposed.
These commitments reduce costs and increase opportunities for New Zealand businesses, including SMEs. Without them, restrictions on data flows and requirements to hold data in each market businesses operate in can impose considerable costs and barriers to market access.
These commitments have been made more legally certain and directly enforceable with the entry into force of the DEPA Protocol. This provides more certainty for New Zealand digital exporters who are currently operating, or considering operating, in those markets.
Better facilitation of business and trade
Studies have shown that international trade costs can be reduced by the adoption of paperless trade. The OECD estimates electronic customs procedures can reduce time at the border by 70%.
The DEPA promotes the adoption of paperless trade. This ensures that electronic trade documents can be accepted as fully equivalent to their paper versions. It encourages the use of trade single windows (locations where businesses can submit all their import/export paperwork), which can reduce duplication of paperwork.
The DEPA also commits Parties to establish faster Customs procedures for express shipments, including setting minimum values for goods under which Customs duties will not be collected.
These measures reduce costs for SMEs as they reduce time and resources spent on paperwork. These measures also increase SME resilience as digitalisation allows New Zealand businesses to overcome our traditional trade challenges of distance and scale, especially in times of uncertainty (e.g. the COVID-19 pandemic).
Protection for digital products
The DEPA, together with its Protocol, commits Parties to treat each other’s digital products (e-books, games, music etc.) as equal to its own. This ensures New Zealand’s digital products enjoy a level playing field with competing products in DEPA economy markets. This commitment was reinforced by the DEPA Protocol.
The DEPA also includes a commitment to not impose Customs duties on electronic transmissions, including the content of the transmissions which could include music, movies, games, etc. This commitment also reduces the barrier to entry for New Zealand SMEs wishing to export their products to other DEPA Parties. These benefits will increase as more countries join the DEPA.
Enhanced trust in the digital environment
The DEPA calls upon Parties to build a digital environment in which businesses will have the confidence to operate. It commits Parties to maintain legal frameworks that address spam; prohibit fraudulent, misleading or deceptive conduct that causes harm to online consumers; ensure products are consistent with their businesses’ claims; and provide redress where these obligations have been violated.
Parties also collaborate on how to build cybersecurity capability so that businesses, including SMEs, can better protect themselves from cybersecurity threats.
Support for innovation and emerging areas
DEPA Parties recognise cooperation is important to encourage and support technological innovation and creativity.
The DEPA encourages cooperation in emerging areas of the digital economy. These include artificial intelligence (AI) and financial technology (FinTech).
These provisions will enable businesses, including SMEs, to engage with each other in emerging areas of the digital economy.