World reopens for NZ asparagus
An asparagus breeder sees scope for the industry making a “tremendous breakthrough” via the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
We would still improve access for NZ exporters and lower tariffs in markets where we don’t now have free trade agreements (FTAs), Harvey said at a Ministry for Foreign Affairs and Trade (Mfat) briefing on current trade negotiations.
“These are countries like Canada, Mexico, Peru and importantly Japan -- the world’s third largest economy. The regional nature of the TPP was also a key feature of why it was developed,” says Harvey.
“It was meant to create – and we hope it still will – a common set of rules among a group of Asia Pacific economies which currently account for 31% of our total goods exports and 31% of our services exports, so businesses have one set of rules they can follow in the region.”
The other 11 economies in the agreement including NZ are talking about how to bring this agreement into effect without the US.
“Those decisions are going to continue [from now].... We hope a decision can be made on this by the end the year.
“The TPP is an important building block of our trade strategy but it is not the only negotiation we attach priority to.”
NZ is reviewing its FTA with the Association of South East Asian Nations – ASEAN - and its closer economic partnership with Hong Kong. The Government announced in April 2017 that Singapore and NZ will develop an enhanced partnership including an upgrade of our existing bilateral FTA.
Some positive signals have been seen for finalising the Gulf Cooperation FTA, the text for which was initialled in 2009, but recent developments in Qatar could complicate that.
Tariff elimination on dairy into China is one issue NZ will be looking to progress in the imminent FTA update with that country.
“A handful of sectors are yet to have tariffs eliminated; dairy is one of them,” NZ’s lead negotiator Brad Burgess says.
“They are being phased out under the safeguards. That safeguard issue has been mentioned by the sector as a non-trade barrier they are facing into China so it is certainly an issue we will be looking at to see what we can do to progress it.
“The safeguards on dairy expire under the current FTA; they expire in 2022 and 2024 so from 2025 all dairy products into China will be tariff free.
“The question will be ‘is there anything we can do to improve that situation before then? But the FTA already delivers duty free access for dairy in a number of years.”
Harvey, the lead negotiatior for the European Union FTA, says all options are still open on dairy trade and negotiators will be “ambitious”. A scoping paper for the negotiations with the EU was released this month and referred to ‘sensitivities’ on agricultural products.
“If you talk to someone in the EU on current tariff quota products they will only be talking about increased tariff quota access,” Harvey says.
“But if you look at the scoping document there are a number of things we can use, e.g. extended trade phase out and tariff rate quotas; and if you make them big enough you have free trade.”
Harvey says there is a range of options. “Our view is we will be ambitious; we would want the best access possible.”
In an overview of trade negotiations, Harvey says the Government’s overarching strategy for trade is Trade Agenda 2030, launched in March.
It sets the specific task of 90% of goods exported being covered by free trade agreements by 2030.
It outlines four shifts in trade policy emphasis: urgently expanding our network of FTAs while maximising existing agreements; increasing the focus on tackling non-tariff barriers; including registration and certification requirements; increasing the focus on services, investment and digital trade; and assisting NZ businesses to succeed overseas.
