Tuesday, 26 October 2021 08:55

Finally, a deal is here

Written by  Peter Burke
Trade and Export Minister Damien O'Connor. Trade and Export Minister Damien O'Connor.

News that NZ and the UK have agreed 'in principle' to the terms of the free trade agreement (FTA) will come as welcome news to the dairy sector.

The announcement was made at Parliament last week by Prime Minister Jacinda Ardern and Trade and Export Growth Minister Damien O'Connor. The agreement 'in principle' means the deal has been done, with just the final text to be worked through in the coming months.

Ardern says it's one of NZ's best deals ever and is secured at a crucial time in the Covid recovery. She says it will serve our economy and exporters well.

The deal comes just a week after O'Connor met with the UK's Trade Secretary Anne-Marie Trevelyan in Italy and the word from those discussions was that announcement on an FTA was imminent.

Speaking from MIQ following his recent trip to Europe, O'Connor says he's proud of what NZ has achieved in the negotiations with 97% of tariffs being eliminated on our products entering the UK.

"There will be a transition period for our butter, cheese, beef and sheep meat producers during which time they will enjoy significant tariff-free transitional quotas.

"This provides great opportunity to grow our trade through these periods. For instance, 7000 tonnes of butter, and 24,000 tonnes of cheese can flow to the UK market tariff-free at commencement. That will grow to 15,000 for butter, and 48,000 for cheese by Year 5, after which point trade will be free," he says.

In return NZ will fully liberalise tariffs on UK goods entering our country.

"This FTA is comprehensive, inclusive and high quality and provides fantastic opportunity for our exporters," O'Connor says.

More like this

Editorial: Building Bridges

OPINION: After Jacinda Ardern and Labour were asked to form the government following the 2017 elections, Federated Farmers sent an email out to its executives asking if any of them had a working relationship with any Labour MPs. The answer was no one did.

Feds support live animal exports

Federated Farmers have reiterated their support for the coalition Government to abolish the present ban on the live export of animals.

Live exports battle

As the coalition Government mulls new regulations to reinstate the export of live animals, debate is heating up between supporters and opponents.

Crazy

OPINION: Your canine crusader was truly impressed by the almost unanimous support given by politicians of all stripes in Parliament to the recent passing of legislation for the NZ/EU free trade deal.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of…

Machinery & Products

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

Entries open for innovation award

Fieldays and its renowned Innovation Awards are celebrating their 57th year, marking a longstanding tradition in the agricultural calendar, with…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter