Source: BusinessNZ
The Free Trade Agreement (FTA) signed with the European Union will deliver significant outcomes for selected sectors, but falls short of the high quality Agreement New Zealand signed with the UK, Export NZ says.
Executive Director Josh Tan says the FTA opens up a market for goods previously obstructed by tariffs on products exported from New Zealand.
“The winning sectors on the day are the likes of horticulture, seafood, wine, and honey – who will be delighted with the outcomes. Our two largest goods export sectors, red meat and diary however would have been hoping for more commercially meaningful outcomes for their exports.
“Unfortunately the EU has not backed its own farmers to be competitive with meat and dairy farmers in New Zealand and maintained tariff protection for them. This is not only to the detriment of NZ exporters from our meat and dairy sectors, but it means that EU consumers will be paying more for our high quality sustainably produced food.
“On the bright side, our service exporters can now compete in the EU market on a more-level playing field alongside local offerings and others in market like the UK and Singapore.”
Tan says negotiating with as many countries and interests within the European Union can be difficult without compromise.
“While we could not call this FTA comprehensive, ExportNZ acknowledges the hard work New Zealand’s negotiators put in to secure this deal.
“We expect the FTA will come into force by this time next year and look forward to the seeing our exports continue to grow in the EU market.”
