Analysis by Beef + Lamb New Zealand (B+LNZ) shows that New Zealand’s free trade agreements (FTAs) delivered tariff savings of $161 million on the nation’s sheep and beef sector’s exports in 2014 – and the amount is set to grow as tariffs continue to reduce and export volumes grow.
B+LNZ provides detailed analysis and information to the government to support free trade agreement (FTA) negotiations as part of its advocacy work on behalf of sheep and beef farmers.
New Zealand’s FTAs lower the tariffs facing the sheep and beef sector’s exports in many key markets, improving the competitiveness of those products.
As a result of New Zealand’s current FTAs, the total tariff cost imposed on sheep and beef sector exports in 2014 was $161 million lower than it would otherwise have been.
The red meat sector’s export returns for the period total $7.7 billion, with the amount in tariffs paid falling from $331 million in 2013 to $326 million in 2014.
B+LNZ chief executive, Dr Scott Champion said the increased tariff savings were a market access success story, enabling New Zealand to remain competitive on the global market and giving exporters the flexibility to viably sell products into more markets.
He said that while changing trade flows had some impact on last year’s figures, the decrease in tariffs paid and increase in tariffs saved is largely a result of the continued removal of tariffs negotiated as part of New Zealand’s FTAs – particularly with China and Taiwan.
“As market access for our red meat products continues to improve as more FTAs come into force, and tariffs are further phased out within existing FTAs, those savings can only grow. And that benefits not only farmers, but all New Zealanders.
“Continuing to work for better market access arrangements, that reduce the costs of exporting to the sheep and beef sector, is a key part of B+LNZ’s work.”
Supplied by B+LNZ Ltd.