The Trans-Pacific Partnership (TPP) agreement eliminates all tariffs on beef into our biggest market, the United States, within five years of coming into force.
Trade Minister Todd McClay, speaking at the Canterbury Employers Chamber of Commerce this morning, says New Zealand exported meat products worth over $2.8 billion to TPP countries in 2015 and the gains once TPP comes into force will be significant.
“Our beef into Japan currently attracts a 38.5 per cent tariff. That has made it extraordinarily hard for our exporters to compete with other countries with lower tariffs.
“However the good news is that, under TPP, that tariff will reduce down to nine percent over 16 years – the lowest tariff in any free trade agreement (FTA) Japan has ever allowed on beef.
“Tariffs will also be eliminated on beef into Canada within six years and into Mexico and Peru within 10 and 11 years respectively,” says Mr McClay.
Sheepmeat exporters will also see an immediate tariff reduction.
“The tariffs on most sheepmeat into TPP countries will be gone immediately and all tariffs will be eliminated within eight years.
“What this means is that our meat exporters will save $43 million every year as soon as TPP enters into force and will save $84 million every year when TPP is fully implemented.
“Behind these numbers are real companies employing real people. As companies prosper, so do jobs,” says McClay.