Sheep & beef industry will benefit from trade liberalisation

13 November 2011

Sheep and beef industry will benefit from trade liberalisation

Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) say the significant progress made towards reducing trade barriers at the APEC meeting over the weekend has the potential to transform the international marketing opportunities for the New Zealand sheep and beef industry.

B+LNZ Chairman Mike Petersen and MIA Chairman, Bill Falconer said the outcomes were important on many levels.

“The announcement by President Obama of an ambitious timetable for completion of the TPP is huge news for our sector. This grouping of countries would provide a partnership zone bigger than Europe and importantly includes key growing economies in the Asia Pacific region.

“Japan's intention to join Trans-Pacific Partnership (TPP) talks is also very welcome news. The tariffs paid on beef and sheepmeat exports into Japan are a significant cost to all importing countries and any agreement will need to focus on full tariff elimination over time.” Petersen said.

“Improved access for all goods with the eventual elimination of all tariffs is a very welcome message, particularly in these very uncertain global economic times.”

As at December 2010 Japan was New Zealand's second largest beef market by value, with trade in chilled and frozen beef of NZ$209m.

Japan is also an important sheepmeat market with exports of chilled and frozen sheepmeat of NZ$58m. The tariffs paid were NZ$80.5m on beef exports, with New Zealand beef exports paying tariffs of 38.5%, with a snap back to 50% should certain volumes be reached. There are no tariffs on sheepmeat in Japan.

Petersen said the outcome of negotiating the outline for a high quality TPP agreement for the nine countries of Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, United States and Vietnam was an important milestone to be celebrated and it had the potential to deliver significant financial benefits to sheep and beef farmers and the New Zealand economy.

"It's very positive to see the commitment to a high quality agreement and that these negotiations will be concluded as rapidly as possible."

Falconer said: "We also welcome the news of Russia's imminent membership of the WTO. Russia's entry into the WTO complements New Zealand's current negotiations underway for a bilateral free trade agreement with Russia-Belarus-Kazakhstan Customs Union."

B+LNZ and MIA support the Government by providing background information and analysis that negotiators need when they deal with agricultural matters.

ENDS

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