Strong wool eyes China
China looks set to play a key role in helping the New Zealand wool sector shift away from trading as a commodity supplier.
The EU’s proposed restrictions on the use of geographical names in products could have implications for NZ exports to other regions – including China, a trade expert says.
“As part of negotiations for a free trade agreement (FTA) the European Union (EU) wants New Zealand to adopt strict regulations about the way certain geographical names are used in international trade,” explains executive director of the NZ International Business Forum, Stephen Jacobi to the Hawke’s Bay branch of the NZ Institute of International Affairs about the EU FTA and Brexit
He says while names of wine regions like Champagne are already restricted here, what the Europeans want is more about names associated primarily with dairy products and some meat products.
“This new strict regime would not only apply to products marketed in NZ, but also to our exports to other markets,” Jacobi says. “Think of feta cheese, mozzarella, parmesan, even cheddar.”
He adds that NZ’s view is that these names have become generic – rather than relating to a certain geographic region.
“Fonterra now supplies large amounts of mozzarella cheese to China: every second pizza in China is covered with it,” Jacobi points out. “That’s a lot of pizza and a lot of cheese!”
The EU has proposed restricting many geographical indications now being reviewed by our officials.
Jacobi says some of them may not pose difficulties, but others certainly will.
“However, there is a principle at stake here.”
He says another potentially complex issue with the EU FTA, relates to agriculture.
“Some parties in the EU’s agricultural producing nations are not enthusiastic about what might be included in an FTA with NZ.
“However, the FTA negotiations are an opportunity to promote and advance growing exports of high-quality food products including horticulture and wine.”
Jacobi says the export boost at the NZ end is likely to be huge.
“EU modelling suggests the deal could add as much as 0.5% to NZ’s GDP – a gain of up to $2 billion.”
He says Brexit also casts a big shadow over tariff rate quotas (TRQs) for our sheepmeat, beef and dairy products. The European Commission and the British Government have proposed that upon Brexit the TRQs will be split in half.
“That poses a lot of difficulties for NZ exporters who have, over a long time, developed markets in Britain and EU, which they manage according to market trends and consumption patterns and in the light of flows of British products to the EU and European products to Britain,” he explains.
“NZ exporters will lose a lot flexibility from the proposed splitting of the TRQs – even though their right to export within the quota limits and rules has been guaranteed since 1995.”
Jacobi says the European Commission and the British Government have in effect decided to proceed over the objections of NZ and other trading partners with similar arrangements.
“They risk having to face years of trade litigation in the WTO.”
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…