June 12, 2020


New Zealand's meat industry joins criticism of EU trade offer


Beef and Lamb New Zealand and the Meat Industry Association denounced a leaked European Union trade offer that retains current small quotas and adds high tariffs for livestock, Stuff New Zealand reported.


The association said the small quotas and proposed high tariffs will make it difficult for New Zealand exporters to develop a beef trade to the EU.


Sam McIvor, Beef and Lamb chief executive said New Zealand is one of the few countries without an EU free trade agreement, which means New Zealand is at a disadvantage compared to other EU free trade agreement partners.


McIvor said current New Zealand beef exports to the EU is restricted by a 1300 tonnes tariff quota and a 20% in-quota tariff rate. Additional exports will be imposed a tariff of 12.8% of the value, between 171 EUR (US$193; 1 EUR = US$1.13) and 312 EUR (~US$352) per 100 kg. This can amount to a 50% tariff.


Sirma Karapeeva, New Zealand Meat Industry Association chief executive said the low quota and significant tariff out of quota means it is hard for exporters to establish trade with the EU.


Karapeeva said the industry was delighted to hear the EU recognising the importance of an open trade policy in a post-COVID-19 world, but the leaked trade offer details are a counter to that statement.


David Parker, New Zealand Trade Minister said in the leaked trade offer, the EU will only accept 3g of New Zealand cheese per citizen, which is subjected to volume limits and a high tariff. On the other hand, the EU exports tariff-free 1 kg of cheese to New Zealand per citizen.


Malcolm Bailey, Dairy Companies Association chairman said the EU has offered to import butter at 600 tonnes, which accounts for only 0.03% of the domestic market. Each tonne will be charged a 586 EUR (~US$662) tariff.


-      Stuff New Zealand