The Free Trade Agreement signed with the European Union will deliver significant outcomes for selected sectors, but Export NZ said that it falls short of the high-quality agreement New Zealand signed with the UK.
Executive director, Josh Tan says the Fair Trade Agreement has opened up a market for goods previously obstructed by tariffs on products exported from New Zealand.
"The winning sectors on the day are the likes of horticulture, seafood, wine, and honey - who will be delighted with the outcomes. Our two largest goods export sectors, red meat and dairy, however, would have been hoping for more commercially meaningful outcomes for their exports,” said Tan.
Tan added that the European Union had not backed its own farmers to be competitive with meat and dairy farmers in New Zealand and maintained tariff protection for them. This is not only to the detriment of New Zealand’s exporters from the meat and dairy sectors, but it means that European Union consumers will be paying more for high-quality, sustainably produced food.
"On the bright side, our service exporters can now compete in the EU market on a more level playing field alongside local offerings and others in markets like the UK and Singapore."
Export NZ considered the stance of negotiating with as many countries and interests within the European Union could be difficult without compromise.
"While we could not call this FTA comprehensive, ExportNZ acknowledges the hard work New Zealand's negotiators put in to secure this deal. We expect the FTA will come into force by this time next year and look forward to seeing our exports continue to grow in the EU market."
