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).
The grower organisation says onion exports have had an immediate $1 million win with the prospect of eliminating tariffs on products into Japan. The annual sales to Japan are almost $10 million and the tariffs are almost 10%.
"But in the case of the onion industry, where [does] TPP go from here?" Ahern said to Rural News. "We've got a particular interest in the South Korean market which at the moment we don't have access to. We need an overarching trade agreement such as TPP to have any chance of success for our individual item.
"We see some ongoing benefits out of TPP. We are really interested in where it goes from here."
They hope to see more countries come into the trade agreement, such as South Korea. "We are expecting they may arrive.
Vietnam is also in the mix. Once the headline deal is done -- the government to government basis -- the officials then go to work on the deal. Our job as an industry body is to make sure we are on the agenda. We are arguing our own case on the detail."
From 85-90% of New Zealand's annual crop is exported. The main markets are Europe -- mainly France, Germany and some of Scandanavia -- UK, Japan, Indonesia and Malaysia; overall they export to 45 countries.
The prospect of a free trade agreement with the European Union could deliver Onions NZ $4 million straight away. Annual free-on-board (FOB) earnings for Onions NZ members are about $80-$100m on a tonnage of 150,000-180,000 tonnes.
Minister for Primary Industries Nathan Guy, who met with Onions NZ on October 9 to sign a Government Industry Agreement on biosecurity, said the TPP was immediately worth $20m on entry for the wider horticulture industry.
