July 4, 2022

The European Union may import more beef, lamb, and dairy from New Zealand

A free trade agreement finalised between the European Union and New Zealand could see Europe import more beef, lamb, and dairy products from New Zealand, which may affect some EU countries such as Ireland, The Independent reported.

The agreement has the potential to increase goods and services trade between the two parties by 30%. It will only permit a small number of zero or lower tariff imports from New Zealand in these sectors (called Tariff Rate Quotas).

The EU will permit the import of 10,000 tonnes of beef at a reduced duty of 7.5%. Over the course of seven years following the agreement's entry into force, this volume will be gradually phased in.

The EU will permit a tariff rate quota of 38,000 tonnes of sheep meat to be imported duty-free over a period of seven years.

The agreement will also permit increased dairy imports. 15,000 tonnes of milk powder will be subject to a 20% MFN duty tariff rate quota. Over the course of seven years following the agreement's entry into force, this volume will be gradually phased in.

The agreement was announced by European Commission President Ursula von der Leyen following a meeting with New Zealand Prime Minister Jacinda Ardern. Ardern said it had taken 14 years for the deal to be finalised. 

The EU's trade with New Zealand will be on par with nations that already have a trade agreement with the island nation, particularly those of the 11-nation CPTPP Asia-Pacific deal, thanks to the free trade negotiations that started in mid-2018.

The deal, which was reached by the EU for the first time and whose plans were just revealed last week, will remove tariffs on a variety of goods and include the possibility of sanctions if either party violates labour or environmental standards.

-      The Independent