Monday, 17 November 2014 11:41

DCANZ welcomes Korea FTA

Written by 
Malcolm Bailey Malcolm Bailey

THE DAIRY Companies Association of New Zealand (DCANZ) the NZ-Korea FTA agreement will result in elimination of tariffs on the vast majority of dairy tariff lines over reasonable periods.

For cheese, there will be a transitional quota of 7000 tonnes growing at 3% per year until elimination. For butter, there will be an 800 tonne quota increasing at 3% per year until elimination. 

The agreement also includes a permanent quota on milk powder which begins at 1500 tonnes and then increases at 3% per annum until year 10.  All of these results compare well with previous FTAs that Korea has concluded with the EU, US and Australia. 

DCANZ chairman, Malcolm Bailey (pictured), says the agreement was a good outcome given these had been very difficult negotiations. “With other larger countries having concluded FTAs already with Korea, it was undoubtedly a hard road for Minister Groser and his negotiators to get these outcomes.  They have done a fine job in those circumstances and the dairy industry deeply appreciates their efforts,” says Bailey.

New Zealand is a longstanding and trusted supplier of dairy products to Korea. Korean dairy consumption is expanding in-line with rising incomes and imported products play a role in meeting consumer demand that cannot be met by domestic production alone. 

“In 2013, Korea was New Zealand’s 19th largest dairy export market, with trade valued at USD$200.5 million,” says Bailey. “New Zealand exporters currently face import tariffs on dairy of between 8 and 176%.  In the absence of this deal, this would have resulted in New Zealand dairy exports being at a disadvantage compared with EU, US and Australian exporters who already have FTAs in place.

“In concluding this deal the Government has ensured that New Zealand’s trade opportunities will not be curtailed as a result of export competitors enjoying lower tariff rates than us. That has been a very real worry for the New Zealand industry.”

The agreement with Korea will also complement New Zealand’s existing trade agreements in North Asia including those with China, Hong Kong and Taiwan.

More like this

Editorial: O Canada

OPINION: The Canadian government's love affair with its lifestyle dairy farmers has got it into trouble once again.

Featured

Case IH partners with Meet the Need

Tractor manufacturer and distributor Case IH has announced a new partnership with Meet the Need, the grassroots, farmer-led charity working to tackle food insecurity across New Zealand one meal at a time.

25 years on - where are they now?

To celebrate 25 years of the Hugh Williams Memorial Scholarship, Ravensdown caught up with past recipients to see where their careers have taken them, and what the future holds for the industry.

Rockit Global appoints COO

Rockit Global has appointed Ivan Angland as its new chief operating officer as it continues its growth strategy into 2025.

National

Top ag scientist to advise PM

A highly experienced agricultural scientist with specialist knowledge of the dairy sector is the Prime Minister's new Chief Science Advisor.

Machinery & Products

Hose runner saves time and effort

Rakaia-based equipment manufacturer Pluck’s Engineering will soon start production of a new machine designed to simplify the deployment and retrieval…

» Latest Print Issues Online

Milking It

Science fiction

OPINION: Last week's announcement of Prime Minister’s new Science and Technology Advisory Council hasn’t gone down too well in the…

Bye bye Paris?

OPINION: At its recent annual general meeting, Federated Farmers’ Auckland province called for New Zealand to withdraw from the Paris…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter