EU Commissioner Cecilia Malmstrom will visit NZ in late June, though sadly she will probably miss National Fieldays and that opportunity to see our agriculture industry at its best.
Past and present governments and NZ’s foreign affairs and trade people (MFAT) have worked hard to get us to the negotiating start line. So have industry groups such as the Dairy Companies Association (DCANZ) and NZ’s agricultural trade envoy Mike Petersen, working behind the scenes to achieve this milestone.
It’s astounding that NZ is one of only about seven countries without a FTA with the EU, although we have access arrangements via the World Trade Organisation.
A FTA with the EU could boost exports by up to NZ$2 billion a year and save NZ hundreds of millions of dollars a year, says the NZ Europe Business Council (NZEBC), an umbrella group representing the business interests of all European nations in NZ.
While most EU member countries espouse the virtues of free trade, agriculture is always a sticking point. Farmers in Europe still receive subsidies and their numbers ensure they command the attention of their respective politicians. NZ negotiators know this will not be an easy deal to strike, and there is the distraction of Brexit.
EU countries whose economies rely on agricultural exports, such as Ireland, will take a great deal of interest in what the Brussels negotiators put on the table.
NZEBC predicts agriculture will be tough to negotiate, making it unrealistic to expect tariff-free trade in all farm products. But it doesn’t foresee big hindrances that can’t be worked through in time.
Kiwis may expect to see more ministers and industry people flying off to Europe; agri envoy Mike Petersen is up there this week. We have in our favour our good relations with EU member states and these will count.
The recent charmed visit to France and Germany by Prime Minister Jacinda Ardern was probably pivotal in getting the go-ahead for the FTA announcement. Of course, charm offensives work, but now comes the grunty work by our MFAT trade negotiators. They have a great track record and if anyone can land a high quality FTA agreement, they can.
