Meat exporters concerned about UK free trade post-Brexit deal with Europe

Saturday, 26 December 2020

Meat exporters are concerned the free trade deal struck between Britain and the European Union could compromise New Zealand’s access to the market.

Just a week before the deadline, the United Kingdom and the EU signed a 2000-page trade agreement on Thursday in a bid to bring certainty for businesses after years of Brexit turmoil.

Once ratified by both sides, the agreement ensured trade in goods without tariffs or quotas after the UK broke fully free of the EU on January 1.

But Beef + Lamb NZ chief executive Sam McIvor said it was “hugely disappointing” that the UK and the EU’s trade deal split the tariff quota access for beef and sheep meat into their markets, leaving New Zealand worse off.

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Beef + Lamb NZ chief executive Sam McIvor says splitting the quota of meat exports sent the wrong signal about their commitment to the global rules-based trading system.

“This choice sends completely the wrong signal about their commitment to the global rules-based trading system and to trade liberalisation and leadership,” McIvor said.

New Zealand Meat Industry Association chief executive Sirma Karapeeva says exporters are concerned the quota split would erode the quality and quantity of New Zealand’s market access into those high value markets.

“Outside of Brexit, both the EU and UK have said that they want to negotiate ambitious and modern new trade deals with us. The quota split flies in the face of that claim and leaves us on the back foot before we even get to the negotiating table.”

The EU’s and UK’s World Trade Organisation commitments signed in 1995 included tariff rate quotas that provide access for important New Zealand exports, such as meat, dairy and horticultural products.

The fast-track ratification of the post-Brexit trade deal between the UK and the European Union got under way on Christmas Day (local time) as ambassadors from the EU assessed the accord.

Ambassadors were briefed about the details of the draft treaty on Friday and were set to reconvene again on Monday and have informed lawmakers at the European Parliament that they intend to take a decision on the preliminary application of the deal within days.

Sirma Karapeeva, chief executive of New Zealand's Meat Industry Association, said the association’s concern was the quota split would erode the quality and quantity of New Zealand’s market access into those high-value markets.

“It represents a major step back from the trade liberalisation positions claimed by both the EU and UK, and undermines their WTO commitments and their legally binding obligations,” Karapeeva.

She said the government needed to fight this move.

“Now that Brexit has been resolved, we expect to see the UK and EU taking urgent steps to live up to their word that New Zealand is not left worse off as a result of the Brexit process.

“While we understand the UK and EU have been grappling with a range of serious issues, we urge them both to seek to minimise the impact of their choices on a trusted and longstanding trading and political partner.”

The third round of negotiation talks regarding a Free Trade Agreement with the UK were expected to start in January.