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Wednesday, 13 November 2024 11:55

Editorial: Keep FTAs coming

Written by  Staff Reporters
Trade Minister Todd McClay Trade Minister Todd McClay

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

The council, comprising some of the world's wealthiest countries - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE - already buy $1.8 billion worth of NZ dairy products. This makes the GCC region our second-largest dairy market after China. New Zealand and GCC trade is worth over $3 billion annually, with New Zealand exporting $2.6 billion in the year to June 2024.

The New Zealand Government - in particular Trade Minister Todd McClay - deserves a pat on the back for this achievement. Previous NZ governments must also be acknowledged for laying the foundation for the trade deal. It delivers on an 18 year-long ambition for New Zealand to bag this high-quality trade deal in the Middle East.

This is the highest quality deal the GCC has done to date and its first with a major agricultural exporter. It delivers duty-free access for 99% of New Zealand's exports over 10 years and when combined with our recently concluded NZ-UAE CEPA, 51% of our exports to the region will be tariff-free from day one.

Dairy processors welcome this deal along with the other recent deal between NZ and the United Arab Emirates (UAE).

Locking in elimination of the already low tariffs on key dairy products into this highly valuable market provides important commercial certainty for dairy exporters, according to the Dairy Companies Association of NZ (DCANZ).

It wants the Government to maintain momentum and ambition to bring down barriers with other negotiating partners, including upgrading existing trade agreements that have not yet secured dairy tariff elimination. This will ensure continuing high quality and high value markets for our world-class dairy products.

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