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New Caledonia country brief

New Caledonia is the third largest island state in the South Pacific after Papua New Guinea and New Zealand.

Nickel is its major source of wealth and represents more than 90 percent of exports.

The country’s sensitivity to global downturns has led to increased diversification. Although limited at present, recent activities in sectors such as fishing, aquaculture and tourism represent valuable additions to the economy.

There is a strong focus on road development and increasing air and sea services in an effort to open up the more isolated regions of the country.
New Zealand’s exports include flat-rolled iron and steel products, milk products, timber and meat.

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Getting your product into market

As the New Caledonian market is small, it is advisable to appoint an agent who can distribute and promote your product with sufficient mark up incentive, rather than have the product sold or promoted by too many importers.

It is a must to have product literature in French where possible.

Successful New Zealand exporters frequently visit the market and offer full commitment to their clients by way of marketing versus trading on price alone.

Regulatory issues include:

  • International health standards apply, with emphasis on French or European Union (EU) standards for food processing
  • Domestic products are generally protected by a combined regime of quotas and tariffs
  • French (or bilingual) labelling is a legal requirement
  • New Caledonia has adopted the Harmonised System of Tariff.

Tax

There are many tax incentives and reductions available to stimulate investment, particularly in mining, fishing, tourism and agriculture. There are also taxable business licences and patents.

Logistics

Four weekly flights are operated from Auckland to Noumea-La Tontouta on Tuesdays, Wednesdays, Saturdays and Sundays by both Air New Zealand and Aircalin under a code share arrangement.

Aircalin also charters a weekly cargo flight.

Noumea is the major port for containers and break bulk. Sofrana, PDL and Maersk offer regular shipping services from Auckland and Tauranga on their own vessels. They also have slots with some European shipping companies.

Opportunities

  • Most of the economy revolves around Nickel mining. There are two large mining projects underway, Goro in the south and Kone in the north. Both projects will require products to support these new mining projects.
  • New Zealand is usually seen as an excellent and preferred source of supply for quality products, in particular for fresh foods such as meat, seafood and dairy products. New Zealand's excellence in marine, whiteware, timber, housing and education is also recognised.
  • One of the advantages of New Caledonia’s EU associate membership remains untapped by New Zealand exporters. When a product receives sufficient added value in New Caledonia, it gains free trade access to the EU.
  • Joint ventures with local partners are welcomed and should help New Zealand companies improve their trade access to New Caledonia.

Challenges

  • EU countries continue to enjoy a preferential tariff over non-EU countries. There are also technical barriers to trade, created in particular by the requirement that importers meet French/EU norms and safety specifications.

Cultural and business tips

  • No visa is required for New Zealand passport holders visiting New Caledonia for up to 90 days. Employment is subject to special application.
  • French is the official language and is used in the business world. However, English is widely understood and spoken. Exporters are expected to make an effort to either speak adequate French or bring an interpreter.

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