Thursday, 10 December 2015 12:05

Red meat sector welcomes Korea-NZ FTA

Written by 
The Free Trade Agreement (FTA) with Korea is a significant step towards reducing the overall amount of tariffs paid on New Zealand red meat exports. The Free Trade Agreement (FTA) with Korea is a significant step towards reducing the overall amount of tariffs paid on New Zealand red meat exports.

The red meat sector welcomes the announcement today that all steps are now completed to enable the Korea-New Zealand Free Trade Agreement to enter into force before the year end.

The Free Trade Agreement (FTA) with Korea is a significant step towards reducing the overall amount of tariffs paid on New Zealand red meat exports.

Tariffs of almost $323 million were paid on New Zealand red meat exports in 2014. A significant proportion of those tariffs were paid in Korea ($64 million) – where applied tariffs are 40% on beef.

The Korea FTA is critical for New Zealand sheep and beef farmers and meat exporters, ensuring New Zealand remains competitive in this key market.

Korea is New Zealand's fourth-largest beef market by volume, taking nearly $123 million of beef exports last year.

However, trade volumes have dropped in recent years, partly due to competitors such as the United States, and more recently Australia and Canada, having a tariff advantage through their FTAs with Korea.

New Zealand red meat exports will benefit from two rounds of tariff cuts in quick succession – the first on entry-into-force of the agreement on 20 December, and a second round of cuts on 1 January 2016.

Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) work together to improve access for sheep and beef products to overseas markets, including by providing in-depth analysis in support of the Government's FTA negotiation efforts.

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.

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