Tuesday, 04 December 2018 12:55

Pragmatic approach to trade needed for Brexit

Written by  Peter Burke
BLNZ chair Andrew Morrison. BLNZ chair Andrew Morrison.

Real pragmatism is needed in Europe to sort out the trade issues on Brexit, says Beef + Lamb NZ chair Andrew Morrison.

Just home from his annual visit to Europe, he says this fortuitously coincided with the apparent agreement on Brexit between the EU and UK negotiators. 

However doubt remains on whether the deal will win the support of UK politicians.

Morrison told Rural News, from London, that his key message in talks with officials, farming leaders and commercial entities is the need for rules-based free trade, and that any move to break away from this concept will be strongly opposed by NZ.

“If you compromise on this issue it doesn’t leave anyone in a good position for any future trade deals,” he says.

Morrison talked with the Ulster Farmers Union which told him that if the UK left the EU without a deal it would be disastrous. He got the same message from French and Republic of Ireland (Eire) farmers: they all want a deal that supports the free flow of trade.

“Pragmatism has to prevail because if there is a hard border between Northern Ireland and [Eire] there will be problems,” he said. 

“A lot of the lambs are grown in the north, but processed in the south. These are purely commercial issues and a lot of the people we have met – from cooperatives and sheep and beef processors – want certainty about their investment and the ability to put their products in markets as they currently do.”

Meanwhile, the issue of tariff rate quotas (TRQs) for sheepmeat to the EU is high on the agenda for NZ, with a proposal by the UK and EU to arbitrarily split this 50/50 when Brexit takes effect. 

NZ opposes this move because it would take away the current flexibility to sell NZ’s 228,000 tonnes of sheepmeat where there is greatest demand.

But Morrison says the real objective is to get more lamb onto the shelves of supermarkets and grow total sales of this product.

“I think TRQs have been misunderstood in that they are being used as a bit of a political football, whereas the goal is to ensure we supply lamb into these markets when they need it.” 

Morrison says lamb was in short supply in the EU and UK this past Easter. The point is not so much about NZ filling its quota but about it maximising the value from its sales to these markets.

Not all about trade

Although Brexit and trade are high on European farmers’ agenda other issues are also worrying them.

These include climate change, the environment, water quality and biodiversity – heard for the first time since he began his annual visits there. 

“They are also talking about the threat from alternative proteins.” 

Morrison pointedly told the EU farmers that he was not there to put pressure on anyone, but rather to prompt quality dialogue between farmers in the southern and northern hemispheres.

More like this

Red meat's China push

The red meat sector is launching a new campaign to lure Chinese consumers to New Zealand grass-fed beef and lamb.

AR37 scientist scoops award

A scientist instrumental in the development and commercialisation of the novel endophyte AR37 scooped the Ballance Agri-Nutrients Science and Research Award at Beef + Lamb NZ Awards last night.

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