Fonterra to appeal Aussie court ruling
Fonterra says its ongoing legal battle with Australian processor Bega Cheese won’t change its divestment plans.
"We want real progress; if it's moving at a snail's pace, moving at fractions of percentages, then we are not going to be happy," National Federated Farmers of Australia chief executive Matt Linnegar told Rural News. "We will advise our own government to say 'forget about it'.
"But if it is real progress – we understand that might not be 100% across the board but it has to be real progress nonetheless – then it's worthwhile pursuing."
But New Zealand Federated Farmers president Bruce Wills says TPP is worth the effort because it is "such a big prize" if successful.
Both were speaking to Rural News at a KPMG function for agricultural representatives with an interest in the 15th round of the TPP negotiations hosted by New Zealand from December 3-12 in Auckland.
Linnegar said most Australia and New Zealand interests were shared. "We rely on exports heavily – you guys more than us – but nonetheless two-thirds of what we produce is exported, so it's important," said Linnegar.
"But if we have something that becomes another WTO (World Trade Organisation) round, that moves at a snail's pace and we gain very little, we've wasted our time.
"The key thing for us and our New Zealand counterparts is market access and rules of origin that makes sense in that access. If we get those two things, then we are well on the way to getting better results for farmers in both countries."
On the reported position of President Barack Obama wanting TPP completed by the end of 2013, Linnegar says "so we hear". "At this particular round the US appears to be getting a sense of where everyone else is at rather than proffering too much themselves on 'here's where we're going to move'."
His impression of the 15th round is "there hasn't been a lot of movement; some of the right things have been said, but that hasn't necessarily been followed up by action".
However Wills believes the battle will be worth it. "What you learn in this free trade stuff which Australia and New Zealand live and breathe, is it is quite foreign to the rest of the world," said Wills.
"So we've got a real battle. We have found in Auckland in these last few days, it's hard work, tariffs cost us $1.5 billion as a farming community and a country in 2010; that's a big prize.
"So this stuff is hard, it is frustrating, but we've got to keep tracking on. We did that free trade with China and it's been hugely successful."
From a half-day attendance he was frustrated by some of the complications in the 15th round. "It's going to take some time, but from New Zealand's perspective, we have to keep going on this one."
He is encouraged by President Obama giving the date of October 2013 to wind up the agreement.
"But there are plenty of people who are happy to sit in their own environments. They don't want any bar of New Zealand's world competitive farmers having access to their markets. So we've got to be pretty convincing."
TPP involves 11 Asia-Pacific countries: Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, Peru, Singapore, the United States, Viet Nam, and New Zealand. Round 15 saw Canada and Mexico join negotiations for the first time.
