Thursday, November 16, 2017
THE Meat Industry Association (MIA) along with Beef and Lamb New Zealand (B+LNZ) say they welcome the announcement a new trans-Pacific trade agreement has been struck.
B+LNZ chief executive Sam McIvor said the agreement, now called Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), would deliver significant gains to the sector.
“New Zealand’s regions are hugely reliant on revenue flowing as a result of exports. Trade is the lifeblood for our sector, which in turn creates jobs and supports communities around New Zealand,” he said.
He said over 90 percent of New Zealand’s sheepmeat and 80 percent of beef production was exported. These exports supported around 60,000 jobs on farms and in processing companies, and a further 20,000 jobs in supplying sectors.
“This deal simultaneously opens up multiple markets in Japan, Mexico, Peru and Canada and puts us on a level playing field with other major red meat exporters in the Asia Pacific region, such as Australia and the European Union,” he said.
MIA chief executive Tim Ritchie said since a 2015 trade agreement, Australia’s beef exports to Japan had increased by $NZ1 billion, while New Zealand’s fell by $NZ30 million.
“Demand in Japan for beef has been growing, but we have lost significant market share,” he said.
He said the situation worsened in August when Japan imposed a WTO safeguard on frozen beef, raising tariffs on New Zealand exports from 38.5 percent to 50 percent.
“Australia only faces a tariff of 22 percent. Since the safeguard was applied, our frozen beef exports to Japan have fallen by 70 percent,” he said.
The new agreement also addresses some of the concerns of the New Zealanders around TPP – the preservation of PHARMC, foreign ownership of land and housing, and freedom to regulate for our own environmental protection.
The sector has also benefitted from the release of a WTO Appellate Body report that upholds the initial findings of the New Zealand-led dispute against Indonesia on agricultural non-tariff barriers.
Mr Ritchie said these barriers impacted on New Zealand beef exports to Indonesia and contributed to a decline of over 80 percent since 2010 – costing an estimated $1 billion in lost trade.