Tuesday, 05 July 2022 08:55

EU FTA: Hit or miss?

Written by  Peter Burke
Prime Minister Jacinda Ardern was in Brussels last week hoping to secure NZ's FTA with the EU. Prime Minister Jacinda Ardern was in Brussels last week hoping to secure NZ's FTA with the EU.

New Zealand may be on the brink of scoring an historic and crucial free trade agreement (FTA) with the European Union (EU).

As Rural News went to press, Prime Minister Jacinda Ardern was in Brussels meeting with the President of the European Commission, Ursula von der Leyen. The meeting is a last ditch attempt to get agreement in principle to a deal, before politicians and officials in Europe head off on their summer holidays.

Rural News understands that the agreement is all but done except for one crucial element - 'commercially meaningful' access for NZ sheep meat and beef. Up until now, both sides are deadlocked on this issue. However, officials are hoping that the talks between Ardern and von der Leyen can break this.

At present, NZ doesn't have preferential access to the EU which is one of the largest global dairy markets in the world. At best, we have some WTO quotas to the EU that aren't used because the quota tariff rate is too high. The situation for beef is equally bad, with NZ only able to ship a mere 1,100 tones to the EU.

On the positive side, it's understood that if the FTA is signed, horticulture is set to be a major beneficiary with the kiwifruit sector in line to gain up to $40 million in reduced tariffs in the first year alone. Onion growers are also believed to be likely beneficiaries, with a figure of $10 million being touted.

It's clear that one issue NZ will not win on relates to what is known as geographical indications (GIs): products - for the most part cheeses - with a name linked to a specific region or even town. Examples are Feta, Gruyere, Gorgonzola and Gouda.

It has been pointed out to Rural News that any country that has completed an FTA with the EU has had to concede on GIs, so NZ is not being treated differently to any other country.

But assuming GIs are in the deal, negotiators are endeavouring to secure a transitional arrangement that would give NZ cheesemakers time to adjust cheesemakers time to adjust to the new regime.

Another big issue, seemingly already agreed to, is rules around sustainability. Both NZ and the EU are at one on this but what remains to be sorted is whether either party can apply sanctions if one or the other breaches environmental or labour related rules.

The stakes in the NZ/EU FTA are high for us. It would give us access to 450 million consumers many of whom are seeking high quality, sustainably produced food. The visit of Ardern and Trade Minister Damien O'Connor is hoped to put the pressure on Brussels to agree to a deal.

More like this

Sorry, not sorry

OPINION: Did former PM Jacinda Ardern get fawning reviews for her book?

Changing global trade ties

OPINION: I recently returned from a market visit overseas, including the United Kingdom and Europe. These are critical, historically important and increasingly high value markets for our red meat exports.

From the CEO: A changing trade environment

Did you know that nearly 90% of total New Zealand wine sales occur offshore? That simple number means our wine businesses are the most export oriented of all the global wine industries. It also makes our sector especially sensitive to any changes in the trade rules that govern the access of our wines into international markets.

Editorial: Building Bridges

OPINION: After Jacinda Ardern and Labour were asked to form the government following the 2017 elections, Federated Farmers sent an email out to its executives asking if any of them had a working relationship with any Labour MPs. The answer was no one did.

Benefits of EU trade deal

The European Union Ambassador says the new free trade agreement (FTA) between the bloc and New Zealand will bring significant benefits to both parties.

Featured

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.

B+LNZ launches AI assistant for farmers

Beef + Lamb New Zealand has launched an AI-powered digital assistant to help farmers using the B+LNZ Knowledge Hub to create tailored answers and resources for their farming businesses.

National

Machinery & Products

Tech might take time

Agritech Unleashed – a one-day event held recently at Mystery Creek, near Hamilton – focused on technology as an ‘enabler’…

John Deere acquires GUSS Automation

John Deere has announced the full acquisition of GUSS Automation, LLC, a globally recognised leader in supervised high-value crop autonomy,…

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards,…

» Latest Print Issues Online

The Hound

A step too far

OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…

Save us from SAFE

OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter