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

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.

Crazy

OPINION: Your canine crusader was truly impressed by the almost unanimous support given by politicians of all stripes in Parliament to the recent passing of legislation for the NZ/EU free trade deal.

Hort's FTA windfall

NZ onion growers are getting an extra $3 million this season for exports to the European Union, thanks to the early ratification of a free trade agreement (FTA).

Featured

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

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

National

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…

Machinery & Products

An ideal solution for larger farms

Designed specifically for large farms that want to drill with maximum flexibility, efficiency and power, the new Lemken Solitair ST…

Landpower increases its offering

Landpower and the Claas Harvest Centre network will launch the Claas Scorpion and Torion material handling solutions to the market…

» Latest Print Issues Online

The Hound

Leaky waka

OPINION: Was the ASB Economic Weekly throwing shade on Reserve Bank governor Adrian Orr when reporting on his speech in…

Know-it-alls

OPINION: A reader recently had a shot at the various armchair critics that she judged to be more than a…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter