New Zealand’s agricultural sector has paid significant tariffs in 2022, amounting to $197 million, predominantly on beef exports to South Korea and Japan.
Despite existing Free Trade Agreements (FTAs) with these nations, the tariffs continue to impact trade.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is set to reduce Japanese tariffs on New Zealand beef from 38.5% to 9% by 2033, with the current tariff at 23.3%.
The FTA with South Korea is on a similar trajectory, aiming to cut tariffs from 40% to zero by 2029, with the rate now at 16%.
Image source – https://beeflambnz.com/news/trade-blog-barriers-trade
New Zealand’s trade agreements have historically provided good access to the EU and UK markets for sheepmeat, and recent agreements are set to improve access for beef.
The UK FTA has already expanded beef access, and the EU FTA, expected next year, will gradually improve beef access over seven years.
In the US, New Zealand benefits from a preferential 213,408-tonne beef quota with a low in-quota tariff, compared to the smaller quotas and higher tariffs faced by South American exporters.
Countries like Mexico, Canada, and Australia, with their own FTAs with the US, enjoy duty-free beef exports.
Image Source – https://beeflambnz.com/news/trade-blog-barriers-trade
Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) continue to support the government in FTA negotiations with the Gulf Cooperation Council and a separate bilateral FTA with the UAE, aiming to reduce tariffs that can reach up to 15%.
The strategic efforts of B+LNZ and MIA in supporting government trade negotiations have led to a situation where, following the EU FTA implementation, 86% of New Zealand’s exports will benefit from FTA coverage.
