Groser Signs Trade Agreement, Encourages Farmers
MEDIA RELEASE
5 November 2009
Trade Minister,
the Hon Tim Groser, told Federated Farmers Meat & Fibre
producers yesterday that the world is their oyster in spite
of mounting pressure from the high Kiwi dollar and climate
change policy.
“Federated Farmers shares the
Minister’s view that unfettered trade access to developing
Asian nations will lift New Zealand up the OECD,” says
Bruce Wills, Federated Farmers Meat & Fibre
chairperson.
“Minister Groser had an influential
hand in the signing of free trade agreements (FTA) with
Malaysia and China among others. To illustrate the
importance of these developing markets, exports to China
have grown by 69 percent since the FTA came into force last
year.
“An overwhelming majority, or about 80
percent, of this increase came from the agricultural sector.
Opening up trade with developing nations will certainly help
alleviate some of the challenges to sheep and beef
farmers’ profitability.
“Although Minister Groser
did not address domestic climate change policy in his
speech, he felt the planet’s increasing population would
influence the direction of international climate change
policy. The world needs to eat after all.
“Global
food supplies must grow by more than 20 percent over the
next 50 years to feed the world’s increasing population.
Developing nations like China and India are right on New
Zealand’s doorstep and most cannot provide enough protein
to feed their emerging middle class. This can only be good
news for New Zealand exporters.
“We are well
placed to take advantage of these opportunities as long as
the Government continues to break down trade barriers. New
Zealand also has an abundance of natural resources, giving
us a distinct comparative advantage.
“Minister
Groser quite rightly pointed out that agriculture utilises
barely 5 percent of New Zealand’s fresh water resource.
This chimes with Federated Farmers call for more water
storage infrastructure to secure the future of farming.
“Yet farmers also need the confidence to invest in
their businesses. However, Minister Groser’s belief that
New Zealand’s climate change response will dictate the
future success of our industry won’t bolster that
confidence.
“The fact is New Zealand doesn’t need
an Emissions Trading Scheme to meet our international
obligations. Our agricultural sector contributes less than
0.01 percent of global greenhouse gas emissions. Federated
Farmers wants all OECD countries to instead commit 0.05
percent of GDP to low carbon research, raising $88 million
in New Zealand annually and $34 billion globally,” Mr
Wills concluded.
For more information please visit
the following website: http://http://WWW.FEDFARM.ORG.NZ
ENDS