Tag Archives: Canada

TPP negotiations need to deliver for agriculture

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New Zealand’s red meat sector is encouraging all negotiating parties in the Trans-Pacific Partnership to work tirelessly to ensure this agreement can be completed by October 2013.

Key outcomes from the completion of TPP must be the elimination of agricultural trade barriers and the opportunity for greater economic integration across the Asia Pacific region, says Beef + Lamb New Zealand (B+LNZ Ltd) and the Meat Industry Association (MIA).

The B+LNZ and MIA chairmen, Mike Petersen and Bill Falconer (respectively) reinforced the need for reduced barriers to agricultural trade, including the elimination of tariffs and other technical barriers as a priority. Achieving that would create benefits and opportunities for all TPP members exporting red meat products.

“The TPP agreement has the potential to create new opportunities for all red meat exporting countries through improved market access, reducing both tariff and non-tariff barriers, and trade facilitation in the Asia-Pacific region,” Falconer says.

The TPP agreement also offers the opportunity to do business more easily and transparently.

B+LNZ and MIA are present at the TPP negotiating round in Auckland, meeting with the agricultural trade negotiators and talking with agricultural and meat producer representative organisations from partner countries.

Petersen says the New Zealand red meat sector had well established links with a number of producer organisations, including the Canadian and Mexican beef producers.

“Both Canada and Mexico are part of the Five Nations Beef Alliance along with Australia, the United States and ourselves. Together, we represent producers from countries that account for one-third of global beef production and approximately half of global beef exports.

“The Alliance will be presenting its views on what it considers would be a successful outcome for the beef trade from these negotiations. Our view is that we must achieve a high quality comprehensive agreement that acknowledges the importance of beef production and consumption for all participating countries.”

B+LNZ and the MIA will continue to monitor progress over coming months and, where desired, assist negotiators to address the key issues relevant to the red meat sector in order to achieve a satisfactory outcome.

Businesses call for urgent action to conclude TPP in 2013

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Business representatives from four economies – US, NZ, Canada and Australia – have met in Auckland to press for more urgency in concluding the Trans Pacific Partnership (TPP) negotiations currently underway.

“In September business representatives from across the TPP member economies urged governments to conclude an ambitious, comprehensive and high standard outcome in 2013,” says Cal Cohen, president of the Emergency Committee for American Trade (ECAT) speaking on behalf of the US Business Coalition for TPP.

“We are glad this call has been taken on board and we express our strong support for this goal.  It is now time for negotiators to tackle the more sensitive issues to ensure this deadline can be met.”

“TPP has the capacity to change the way business is done in the Asia Pacific region.  This is what is needed to grow economies and create jobs,” says Stephen Jacobi, executive director of the NZ US Council and NZ International Business Forum.

“We appreciate the task is complex but we urge negotiators meeting in Auckland this week to accelerate their efforts and narrow their differences so the benefits of TPP can be brought forward at a time of increasing economic difficulty.”

“Canada is joining the TPP negotiations for the first time here in Auckland and is determined to participate in a way that builds consensus for a strong outcome,” said Kathleen Sullivan, executive director of the Canadian Agri-food Trade Alliance (CAFTA).

“Our immediate priorities are addressing the proliferation of non-tariff barriers which impede trade and issues like rules of origin that can prevent trade occurring even when free trade agreements (FTAs) are put in place. There is a lot at stake for Canada in TPP and we are glad to be participating as one of eleven APEC economies.”

“Australia has a lot to gain from a successful outcome to TPP which can provide an opportunity to reduce the complexity associated with the noodle bowl of over-lapping and contradictory FTAs in the region,” said Bryan Clark, director, trade and international affairs, Australian Chamber of Commerce and Industry (ACCI).

“Simplification of the supply chain will translate into reduced business costs and increase the time in which products move around the region.  That can only advantage businesses and consumers and lead to better economic outcomes for all member economies.”

Asia Pacific business organisations have earlier reaffirmed their view that a successful TPP will be:

  • Comprehensive – with no product exclusions and with commercially meaningful and flexible rules of origin.
  •  High quality – with strong standards across all main areas, from transparency, investment and government procurement to intellectual property, e-commerce and sanitary and phytosanitary measures.
  • Ambitious – with the elimination of tariffs and non-tariff barriers on trade in goods and services and investment no later than 2020, the deadline set for free and open trade and investment in the Bogor goals.
  • Innovative – with concrete new commitments on new generation and behind the border issues, including eliminating chokepoints in the operation of regional supply and value chains, fostering small and medium-sized business participation in expanding trade, facilitating regulatory coherence and promoting and protecting innovation.
  • Enforceable – with clear commitments, and strong and transparent state-to-state and investor-to-state dispute settlement mechanisms.
  • A living agreement – open to accession by other Asia-Pacific economies, provided these economies share TPP’s ambitious vision and can demonstrate their ability to accede to an agreement with the characteristics described above.

Business representatives from TPP member economies will join government negotiators and other representatives of civil society at a Stakeholder Forum in Auckland tomorrow (7 December).

Global meat industry hurting, signs show …

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The New Zealand meat industry isn’t the only one suffering around the globe as news reports this week are showing signs of hurting businesses and a changing global scene.

In addition to Vion pulling out of the UK – a reflection of the tough trading conditions, says an item in meatinfo.co.uk – the Canadian pork industry has been warning of massive losses, according to an item in Globalmeatnews.com.

In the US, concern was also noted in a recent Wall Street Journal article “Meat firms face hit to plump profits’ as massive global meat processor Tyson Foods prepared to report its quarterly figures. However, Tyson’s results came out on Monday carrying an optimistic note for the next three years and shares rallied by nearly 10%. The company says it will focus on prepared foods and value-added poultry to “weather the anticipated increase in feed costs during the coming year” (meatandpoultry.com).

In the UK, a management buy-in from previous owner ANM has saved struggling meat processor Yorkshire Premier Meats, says foodmanufacture.co.uk, while another ANM-owned company, Scotch Premier Meats, cut 30 jobs in May.

Meanwhile, JBS SA is planning to build six more plants in Brazil on the basis of growing global demand, with a focus on grass-fed beef, reports MENAFN.com. However, foot and mouth disease continues to hold Brazilian beef exports back from Asian markets.

India was forecast by Rabobank’s global arm last week to become the world’s biggest beef exporter next year. Basing its claim on United States Department of Agriculture (USDA) figures, exports of buffalo meat from India are expected to rise to two million tonnes as Indian dairy farmers slaughter unproductive animals from their large and expanding dairy herd in response to high prices for meat.

Andrew Ferrier new NZTE chair

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Former Fonterra chief executive, Andrew Ferrier has been appointed as chair of the New Zealand Trade and Enterprise Board (NZTE).

His chairmanship will be for a three-year term commencing November 2012, announced economic development minister Steven Joyce and trade minister Tim Groser today.

Ferrier has held a number of director and executive positions for large multi-nationals and has “a wealth of experience in international business, and brings strong governance and strategic capability to the NZTE Board. He is well placed to take up the role of chair for the Board,” says Joyce.

Businesswoman Julie Christie, consultant Charles Finny and Canterbury Employers’ Chamber of Commerce Chief Executive Peter Townsend were reappointed for a second, three-year term.

The Ministers thanked outgoing chair Jon Mayson for his valuable contribution to the operation of NZTE and for steering it through a period of significant change.

Andrew Ferrier has almost 30 years’ experience in international business, with a background in building global, performance-driven businesses.

In September 2011, he stepped down as chief executive of Fonterra after eight years. Prior to joining Fonterra, he was president and chief executive officer of GSW Inc. and spent 16 years in the sugar industry working in Canada, the United States, the United Kingdom and Mexico. He served as the president and chief executive of Tate & Lyle North America Sugars Inc.

Andrew Ferrier is a director of Orion Health Ltd and CANZ Capital Ltd. He was appointed to the University of Auckland Council in March 2012. Born in Canada, he has been a New Zealand citizen since 2008.

Peter Fitz-Herbert is Canada-bound

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Hunterville farmer, Peter Fitz-Herbert is the winner of a Beef + Lamb NZ Ltd agricultural scholarship that will take him to the Five Nations Beef Alliance and Young Ranchers Programme, being held in British Columbia in Canada next month.

The stock-manager on the Fitz-Herbert family farm will accompany B+LNZ Ltd Northern North Island director James Parsons to the Five Nations Beef Alliance. The Alliance is made up of producer organisations from Australia, Canada, Mexico, New Zealand and the US and meets annually to discuss global issues and opportunities for the beef sector.

The Young Ranchers programme will provide Fitz-Herbert with an opportunity to meet other young beef producers and to build an understanding of global beef issues, share their experience and develop networks. There will also be the opportunity to observe how producer representative organisations can collaborate for the benefit of all beef producers worldwide.

Fitz-Herbert manages 2,400 Romney ewes and 220 breeding cattle on the 600 hectare farm which is spread over four separate, mainly hill country farms. Off-farm he is involved with New Zealand Young Farmers, he has been a regional finalist in the National Bank Young Farmer contest and two years running has competed in the Speight’s Coast to Coast race.

Canada joins TPP

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Canada is also joining the Trans Pacific Partnership (TPP) negotiations.

The move, announced by New Zealand Minister of Trade Tim Groser today and following the news that Mexico was to join the negotiations earlier this week,  “demonstrates how dynamic this consultation process is,” the Minister says.

“Our vision for the TPP has always been to create a high-quality and comprehensive trade agreement which over time will act as a platform for wider Asia-Pacific trade liberalisation and economic integration.”

It shows that progress is being made in building an open and inclusive agreement, says the NZUS Council.

“Canada’s decision to join the TPP negotiations following Mexico’s announcement  is further proof that TPP is open to new members who believe they can meet the high standards set by the agreement,” says NZUS Council executive director Stephen Jacobi.

“Canada is a major global economy and a long-standing friend of New Zealand.  A successful outcome to the TPP negotiations will allow the economic relationship between New Zealand and Canada to reach a new level”.

New Zealand exports to Canada in 2011 were worth $597.4 million and it was our 19th largest export market. The top exports were sheep meat, beef and wine.

Jacobi foresees tough negotiations ahead on market access for agricultural products given that Canada maintains tight restrictions on supply managed industries including dairy and poultry.

“The NZUS Council’s submission to the New Zealand Government last year made clear that we considered Canada’s supply management policies incompatible with the vision of TPP as a comprehensive, high quality and ambitious agreement.  These differences will now need to be resolved at the negotiating table”.

Jacobi noted that Japan was continuing to follow the TPP process closely.

“We look forward to Japan joining the negotiations once the Japanese Government is  confident it can meet the high ambition of TPP and consultations are complete,” said Mr Jacobi.

Like the process for Mexico, the next step with regard to Canada joining the negotiations would be for the nine current TPP participants to complete any applicable domestic legal procedures. Following this, Canada would formally join the negotiations as a new participant.

Mexico joins TPP

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Meat exporters to the Americas will welcome the news announced by Minister of Trade, Tim Groser, that Mexico is joining the Trans Pacific Partnership (TPP) negotiations, alongside current participants Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, the US and Viet Nam.

“We believe Mexico’s participation in the negotiations will contribute to the objective of creating a 21st century agreement that will spur economic growth and development, promote innovation, benefit our consumers, and support the creation and retention of jobs, high living standards and the reduction of poverty in our countries and the broader Asia-Pacific region,” the Minister says, adding the NZ is looking forward to working with Mexico to conclude a comprehensive and balanced package, taking into account the diversity of the levels of development.

Step towards free trade area

According to the NZ-US Council,  this is another step towards achieving precisely what was first envisioned – a free trade area of Asia and the Pacific.

“This is good news for businesses which need to operate more effectively and seamlessly in the region,” says NZUS Council executive director Stephen Jacobi.

“Mexico is a steadily growing market for our products, with enormous potential for New Zealand exporters. A successful outcome to the TPP negotiations will also allow New Zealand to leverage the potential in the education and research relationships we have with Mexico.”

Mexico’s entry will make New Zealand’s competitive position in Mexico the same as the NAFTA partners, USA and Canada.

New Zealand exports to the market in 2011 were worth $414.8 million and it was our 25th largest export market. Meat and dairy are the top New Zealand exports to Mexico, with dairy accounting for 62 percent.

Jacobi says that the NZUS Council is pleased to note Mexico is joining the TPP n the same terms as those already taking part in the negotiations. This means these economies share the aspiration for an ambitious and comprehenisve 21st century agreement.

“If the momentum started by Mexico leads to a Free Trade Area of Asia and the Pacific, we would see New Zealand lift its exports by 8.5 percent above 2025 baseline levels and welfare gains to New Zealand lift by 1.35 percent of GDP.

“We look forward to Japan and Canada joining the negotiations, once both economies are confident they can meet the high ambition of TPP and consultations are complete,” says Jacobi.

ACCORDING TO NZUSC: TPP is an existing trade agreement between Brunei, Chile, New Zealand and Singapore, which Australia, Malaysia, Peru, the US and Vietnam wish to join. Eleven rounds of negotiations have been held involving the nine partners. The economies of the Asia-Pacific Economic Cooperation (APEC) account for over 70 percent of New Zealand’s total merchandise trade. Trade with APEC economies has been growing at an average of 4.5 percent per annum over the last 20 years. The TPP could add around $2,.1 billion to the New Zealand economy by 2025, according to research undertaken by the East-West Center in Honolulu.