Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

DCANZ Supports Accelerated Negotiation Of A Deal That Removes All Tariffs

The Dairy Companies Association of New Zealand (DCANZ) welcomes the commitment of New Zealand Trade Minister Damien O’Connor to securing a trade deal with the UK which comprehensively removes agricultural tariffs.

Minister O’Connor and UK Trade Minister Truss have announced a move to accelerate the pace of negotiations. DCANZ considers that the ball is in the UK’s court to complete this negotiation in a timely way that is consistent with its ambitions.

“With both countries committed to being leaders in global trade liberalisation and sharing an ambition for a high-quality and comprehensive bilateral agreement that removes tariffs, there is no reason for the market access negotiation to be complicated or protracted” says DCANZ Executive Director Kimberly Crewther.

DCANZ understands that the market access offers the UK has made to date fall short of the ambitions for the agreement.

“The dichotomy between the UK’s political rhetoric and its reported offers for agriculture is deeply disappointing” says Crewther.

DCANZ rejects any suggestion that dairy is a sensitive area for this negotiation. The UK is one of the world’s largest importers of dairy products and these imports largely come from the EU (the world’s largest dairy exporter) on duty free terms under the UK-EU bilateral trade agreement.

“At the heart of this negotiation is the question of how the UK chooses to treat New Zealand. Will it allow New Zealand’s dairy community to participate in this trade on a level playing field? Will British consumers and food manufacturers be given the same opportunity to choose high-quality New Zealand dairy products, produced under equivalent animal welfare standards and with a lower carbon footprint, as they currently have for EU imports?”

“You need look no further than the trade statistics to see the absurdity of any dairy sensitivity claims. In 2019 the UK imported over half a million tonnes of cheese, almost entirely on duty free terms from the EU. That’s a cheese import volume that is 50% larger than New Zealand’s total exports to all 82 of its current cheese markets.”

The importance of tariff removal should not be underestimated in achieving inclusive trade benefits from this agreement. Ultimately it is the tariff disadvantages faced by New Zealand exporters that prevented even 1 gram of the nearly 8kg of cheese the UK imported per person in 2019 being supplied by New Zealand.

UK High Commissioner Laura Clarke has highlighted the inclusion of a chapter in the agreement on women in trade. The greatest opportunity for the thousands of women involved in New Zealand’s dairy sector to receive real benefits from this agreement will come from tariff elimination.

“Removal of tariffs is the most direct and practical action this FTA could take to lock-in benefits for women in trade. The effectiveness of any other FTA commitments to strengthen trade opportunities for women will be effectively undermined if this tariff elimination prerequisite is not met” says Crewther.

Complete elimination of tariffs on dairy products will also directly benefit the 3% of New Zealand’s small and medium sized enterprises, which are directly part of the dairy industry, by placing the export value-chains they are part of on a level playing-field with their EU counterparts. When this occurs, there will be flow-on benefits for the thousands of other businesses in New Zealand who supply goods and services to the dairy sector.

Taking all tariffs to zero for all agricultural imports produced with equivalent outcome standards has recently been recommended to UK Trade Minister Truss by the UK Agriculture and Trade Commission. Crewther says this FTA is the opportunity for Minister Truss to put that recommended zero tariff approach for agricultural trade into practice in a timely way.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




REINZ May Data: House Price Rises Continue; Auckland Hits New Record Median Price Again

Median prices for residential property across New Zealand increased by 32.3% from $620,000 in May 2020 to $820,000 in May 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand... More>>

Energy Resources Aotearoa: Doubling Of Coal Use Shows Need For Local Natural Gas

New figures showing a near doubling of coal-fired electricity generation highlight New Zealand’s energy shortage and the need for natural gas as a lower carbon alternative, according to Energy Resources Aotearoa... More>>


E Tu: ‘Sense Of Mourning’ As Norske Skog Mill Set To Close

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.
On Wednesday afternoon, workers were told the mill will be stopping production from the end of June... More>>



Auction: 1.4 Million In Rare Vintage Watches, Gems, Jewels & Diamonds Go Under The Hammer At Webb’s

An auction event showcasing over 1.4 Million dollars in rare jewels, gems, diamonds and vintage watches is due to take place this Sunday by Auckland based auction house Webb’s... More>>

Catalist: NZ’s New SME Stock Exchange, Gets Licence To Go Public

New Zealand has a new stock exchange – designed specifically for small and medium-sized businesses (SMEs) to raise up to $20 million a year from the public.
Called Catalist, the exchange has already been successfully working the private investment sector.... More>>

E-Commerce: Over 40% Of Those Engaged In The Bitcoin Community Are Millennials

Bitcoin has emerged to be a popular topic among millennials with digital currency increasingly being viewed as a potential source of creating wealth through investments. The interest in bitcoin by millennials signals the role this age group plays in the possible realization of the digital currency’s mass adoption... More>>