March 2, 2022

Free trade agreement a huge boost for New Zealand farmers

New Zealand's Meat Industry Association said a new free trade agreement signed between New Zealand and the UK represents a huge boost for New Zealand farmers and exporters, Rural Life New Zealand reported.

The agreement will allow quota and tariff-free access for New Zealand lamb and beef, the first time in decades.

Once the deal is ratified, New Zealand beef and sheep meat exports will be subject to duty-free transitional quota, with beef rising in yearly instalments from a starting point of 12,000 tonnes until it reaches 60,000 metric tonnes in year 15, after which it would be duty and tariff-free.

As for sheep meat, the transitional quota would reach 50,000 metric tonnes per year from year five to 15. This is in addition to New Zealand's WTO quota current market access of over 100,000 tonnes.

No duties will be imposed from the 16th year after the deal comes into force.

Sirma Karapeeva, Meat Industry Association chief executive, said the country had not enjoyed tariff-free access to the UK since Britain became part of the European Economic Community in 1973.

Malcolm Bailey, Dairy Companies Association of New Zealand chairman said they are looking forward to tariff-free dairy trade. Bailey said New Zealand dairy exporters are heavily disadvantaged against their EU counterparts due to tariffs, with only 1% of New Zealand milk exported to the UK.

-      Rural Life New Zealand