Wednesday, 12 July 2017 14:55

Milk processors see promise in trade talks

Written by 
Kimberly Crewther, DCANZ. Kimberly Crewther, DCANZ.

The Dairy Companies Association of New Zealand (DCANZ) is welcoming the news of FTA talks with countries in the Pacific Alliance. 

“The NZ dairy industry has a long history of trade with Pacific Alliance countries,” says DCANZ executive director Kimberly Crewther. 

“It’s good news to have a deal on the horizon that will support a further deepening of these trade relationships and put NZ on an equal footing with other dairy exporters.” 

The Pacific Alliance countries -- Mexico, Chile, Peru and Colombia – in total imported $3.5 billion of dairy products (from all origins) in 2016. 

The launch of this negotiation is in line with NZ’s ‘Trade Agenda 2030’ strategy and looks good for improved trade in the Pacific region, says DCANZ.

“We look forward to an FTA agreement on high quality, comprehensive outcomes for dairy and other sectors,” says Crewther. “A deal can be negotiated quickly and to mutual benefit.”

DCANZ is pleased the Labour Party is showing support for the deal. 

Trade Minister Todd McClay says better market access and lower tariffs to these regions will help NZ exporters “in the fight for better access for NZers to important overseas markets”.

They worked hard for trade talks with the Pacific Alliance over the last two years, he says.

“A high-quality FTA will open the door for NZ companies to do more business with the Pacific Alliance countries and increase the $1.1b of two-way trade we have with them.”

McClay spoke from the Pacific Alliance Summit in Colombia following a meeting with the presidents of Mexico, Chile, Colombia and Peru.

“The Pacific Alliance is a grouping of fast-growing, like-minded economies committed to liberalising trade. Between them they have 221 million consumers and a combined GDP of US$3.85 trillion, equivalent to the world’s sixth largest economy,” McClay says.

“Negotiating a high-quality FTA with the Pacific Alliance will also help the Government reach its Trade Agenda 2030 target of covering 90% of our goods traded under FTAs by 2030.”

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