The signing of the Trans-Pacific Partnership (TPP) Agreement today in Auckland is a significant step towards reducing the amount of tariff and non-tariff barriers on New Zealand red meat exports, according to the chairmen of Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA).
Trade Minister Todd McClay signed the TPP Agreement on behalf of New Zealand today with the 11 member countries, including from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, the United States and Vietnam.
“This deal is critical for New Zealand sheep and beef farmers and meat exporters, keeping us competitive in key markets”, says Beef + Lamb New Zealand chairman James Parsons.
The New Zealand sheep and beef sector exports close to 90 percent of its production totaling $7.4 billion, on which New Zealand red meat businesses paid $323 million of tariffs in 2014. Nearly one-third of those total exports go to TPP member countries, with a significant proportion of those tariffs paid in Japan ($77 million) – where applied tariffs on New Zealand’s beef exports are 38.5 percent.
The TPP agreement will eliminate, over time, the vast majority of tariff costs on New Zealand red meat exports to TPP member countries. Based on 2014 exports, this would be a reduction in tariffs paid of around NZ$72 million which ensures that New Zealand red meat products will remain competitive in TPP markets.
“The TPP deal also includes ways to address complex non-tariff barriers, which will prove useful in terms of opening markets and ensuring that they stay open”, says MIA chairman Bill Falconer.
The TPP is expected to enter into force within two years, once all member countries have completed their legislative processes.
B+LNZ and MIA work together to improve access for sheep and beef products to overseas markets, including by providing in-depth analysis to support the government’s trade negotiation efforts.