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Tuesday, 28 January 2020 10:02

Brexit will remove some uncertainty

Written by  Staff Reporters
Sirma Karapeeva. Sirma Karapeeva.

The United Kingdom’s exit from the European Union on Friday and the beginning of trade negotiations between the two blocs removes come uncertainty for NZ’s meat industry.

Meat Industry Association trade and economic manager Sirma Karapeeva says the red meat sector encourages the UK and the EU to use the transition period to December 31 2020 wisely to negotiate the terms of their bilateral trade relationship.

The UK’s exit from the EU on 31 January is a political exit, with the UK’s existing trade relationship with the EU remaining in place until the transition period is completed or a bilateral trade agreement has been agreed and implemented between the two (whichever comes first), meaning there will be no change to New Zealand’s access until then. 

Karapeeva says while the existing trade deal is in place, third party countries such as New Zealand will have a great deal more certainty about the trading conditions.  

Esther Guy-Meakin, B+LNZ's senior manager, international trade, says the red meat sector has worked collaboratively with the New Zealand Meat Board and the New Zealand Government to prepare for Brexit. 

“We have invested heavily in contingency planning, particularly around administrative issues, quota management and export documentation. This gives the sector some confidence to continue to trade into both the UK and EU markets. 

“Depending on the EU/UK bilateral trade agreement, there is still some uncertainty about how the market will respond, particularly if the UK is unable to secure favourable rules for its meat exports to the EU. This will have consequences for third party countries, including New Zealand who are trading into both markets.”  

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