Wednesday, 24 June 2020 07:56

Free trade proposal a slap in the face

Written by  Peter Burke
Malcolm Bailey. Malcolm Bailey.

Dairy companies Association of NZ chairman, Malcolm Bailey has launched a scathing attack on the European Union’s proposed free trade agreement.

He says the present deal is better than the so-called new offer and the offer is a slap in the face to New Zealand dairy farmers. 

He says the reported EU offer, comprised of miniscule quota volumes and high in-quota tariffs, could never credibly form part of a free trade agreement between the economies.   

“This falls short of even paying lip-serve to free trade. It is unashamed protectionism from the world’s largest dairy exporter,” he told Dairy News.

“The starting cheese quota of 1500 tonnes is less than a rounding error, at just 0.02% of the EU’s nearly nine million tonne cheese market.  The butter offer of 600 tonnes is similarly low at just 0.03% of the domestic market, and each tonne will attract a tariff of Euro 586 per tonne, significantly constraining its usability,” he says.

A point of contention right from the start in the FTA negotiations has been the geographical indicators where NZ has been using names for its cheese, which the EU is in effect claiming as its intellectual property. 

Bailey points out that NZ has been using these names such as gruyere, feta and parmesan for over 100 years and now there is an argument. Bailey says NZ should not give way on this issue.

“Adding insult to injury, EU dairy producers enjoy among the highest levels of trade distorting subsidies in the world – a practice that significantly disadvantages New Zealand exporters on the world market. This trade agreement is an opportunity for the EU to take real global leadership and send a positive signal for food trade.  It’s time for action to match words,” he says.

Bailey says Covid-19 has seen many countries turn towards protectionism in a bid to save their economies. But he says history tells us that the best way for countries to recover from an economic crisis is to trade their way out, not put up the shutters.

More like this

Make it 1000%!

OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of 125% on the US, up from the 84% announced earlier.

Farmers will adapt amid global trade turmoil

New tariffs imposed by President Donald Trump signal an uncertain future, but New Zealand farmers know how to adapt to changing conditions, says Auriga Martin, chief executive of Farm Focus.

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

Helping protect sheep from parasites

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association (NZVA) awards. As part of a series looking at this year’s rural winners, Leo Argent talked with Ginny Dodunski, winner of the Veterinary Impact Award for raising the profile of the Wormwise programme.

National

Lame stories from a country vet

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s…

Machinery & Products

Amazone extends hoe range

With many European manufacturers releasing mechanical weeding systems to counter the backlash around the use and possible banning of agrochemicals,…

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

» Latest Print Issues Online

Milking It

Greenpeace a charity?

OPINION: Should Greenpeace be stripped of their charitable status? Farmers say yes.

Synlait's back

OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter