Changing global trade ties
OPINION: I recently returned from a market visit overseas, including the United Kingdom and Europe. These are critical, historically important and increasingly high value markets for our red meat exports.
OPINION: Without doubt, a priority of the Government this year will be to gain traction on the elusive free trade deal with India.
After all, Prime Minister Christopher Luxon has promised an FTA with India in this term. It seems the push for an FTA is not only coming from Wellington. New Delhi, for its part, has written to major Indian businesses seeking their views on negotiating an FTA with NZ.
NZ's two-way trade with India was valued at $2.93 billion in the year to June. To put that in perspective, India ranks 12th in terms of trading partners. New Zealand's two-way trade with China, NZ's largest trading partner, was valued at $37.84b.
Current exports to India consist mainly of wood products, wool, and fruit. Dairy products - New Zealand's biggest export earner - barely feature due to India's protective tariffs.
During its first year, the Government was determined to make a difference. Luxon has spoken twice with his Indian counterpart Narendra Modi and has secured an invite to visit New Delhi this year. Trade Minister Todd McClay has met his Indian counterpart six times - the latest meeting taking place in India last month.
However, securing a deal with India will be tricky. Agricultural access, particularly for dairy products, remains the biggest challenge. India's dairy sector employs millions of small farmers and carries enormous political significance. The livelihoods of more than 150 million people depend on India's dairy industry. Any changes will always be highly political.
There's a school of thought that NZ should follow Australia's lead. The Australia-India Economic Cooperation and Trade Agreement, signed in 2022, delivered significant market access while respecting Indian sensitivities. Australian exporters now enjoy tariff-free access for products like sheep meat and many horticultural goods.
Last month a NZ hort sector delegation visited India to engage with government officials.
India has long safeguarded its farmers against the perceived threat of dairy imports with previous governments treating market access for dairy and other key agricultural exports as a 'red line' of sorts for negotiations.
But there have been hints that the current government may be willing to take a more pragmatic approach for the benefit of other sectors.
The potential of a market with nearly 1.5 billion people opening up for our products is just what NZ's hort and red meat sectors need.
Newly appointed National Fieldays chief executive Richard Lindroos says his team is ready, excited and looking forward to delivering the four-day event next month.
More than 70 farmers from across the North and South Islands recently spent a dayand- a-half learning new business management and planning skills at Rabobank Ag Pathways Programmes held in Invercargill, Ashburton and Hawera.
Government ministers cannot miss the ‘SOS’ – save our sheep call - from New Zealand farmers.
A tax advisory specialist is hailing a 20% tax deduction to spur business asset purchases as a golden opportunity for agribusiness.
Sheep and beef farmers have voted to approve Beef + Lamb New Zealand signing an operational agreement between the agricultural sector and the Government on foot and mouth disease readiness and response.
The head of the New Zealand Kiwifruit Growers organisation NZKGI says the points raised in a report about the sector by Waikato University professor Frank Scrimgeour were not a surprise.
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