Sunday, 23 December 2018 08:55

FTA with UK could be a boomer

Written by 
Malcolm Bailey.  Malcolm Bailey. 

Dynamic gains in both the New Zealand and United Kingdom economies could be made if some trade barriers were freed up.

Particularly in the agri-feed area, says NZ International Business Forum chair Malcolm Bailey. 

The two economies could use a free trade agreement to build new global value chains serving markets in Asia and North America, he says.

The NZ International Business Forum (NZIBF) has released a discussion paper on the potential for a future free trade agreement (FTA) with the UK as it prepares to leave the European Union.

“The UK is one of our most steadfast and like-minded trade friends,” says Bailey. “We have deep shared history, culture and people-to-people links.   Despite the huge shift in our trade to the Asia-Pacific, the UK remains our fifth-largest trading partner, fourth-biggest agri-food export destination and fifth-biggest source of investment.” 

The NZIBF report was prepared by associate director Stephanie Honey on the basis of interviews with a wide range of business and other contacts over the last three months. The preparation of the NZIBF report was supported by BusinessNZ, Beef + Lamb NZ, Dairy Companies’ Association (DCANZ), Meat Industry Association, NZ Winegrowers and NZ Apples and Pears.

Bailey notes that the UK is a key market for many NZIBF members, especially for sheepmeat, wine, apples and honey, and with huge potential for dairy and beef.

The UK and NZ have both signalled an interest in an FTA.  NZ was one of only four new potential partners identified by the UK earlier this year.  The NZ Government has launched a consultation process for stakeholders.

Highlights from the report were presented recently by NZIBF executive director Stephen Jacobi to a business audience brought together by NZIBF member Russell McVeagh and the British NZ Business Association.   

He says a future NZ-UK FTA could be a building block in eventual UK membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“Perhaps one day it might even form part of a Commonwealth-wide trade arrangement.  That’s why we need this deal to be as ambitious as possible.”

The discussion paper says interviews with NZ primary exporter stakeholders suggest that they are watching Brexit closely. 

More like this

Protectionist politicians "stupid"

Politicians who advocate that New Zealand should adopt any form of protectionist trade policies have been labelled “stupid” by the chair of the Dairy Companies Association of NZ (DCANZ).

‘Don’t block trade’

Dairy processors are warning that any suggestion that New Zealand should adopt a protectionist trade stance is “stupid”.

NZ blackcurrant sales surge

A UK-based company, believed to be the single biggest exporter of New Zealand blackcurrant product, has seen “very strong” sales as consumers in the grip of the COVID-19 pandemic seek healthy dietary supplements.

COVID-19: Misery on UK farms

Wake up, New Zealand: that’s the message from a New Zealander trying to manage a large dairy farm in the UK amid the COVID-19 outbreak.

Welcome interim trade move

New Zealand joining 15 other World Trade Organisation members to set up interim arrangements to solve trade disputes is a welcome step, says the NZ International Business Forum.

Featured

 

Fonterra’s big break

Former Fonterra chairman Sir Henry van der Heyden believes the co-operative will come out a stronger global player post-COVID-19.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Dirty water

The Hound understands that Federated Farmers has been cut out of the information loop, for the past year, on the…

Who’s paying?

Your canine crusader noticed a full-page ad recently run in a farming paper calling on meat companies SFF and Alliance…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter

Popular Reads

Drop in payout looms

Dairy farmers are being told to brace for a big drop in milk payout next season.