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Meat exporters are concerned that the free trade agreement reached between Britain and the European Union could compromise New Zealand’s access to the market.
Just a week before the deadline, the UK and the EU signed a 2,000-page trade deal on Thursday in a bid to bring certainty to businesses after years of Brexit turmoil.
Once ratified by both parties, the agreement guaranteed trade in goods without tariffs or quotas after the UK was fully liberated from the EU on January 1.
But Beef + Lamb NZ CEO Sam McIvor said it was “hugely disappointing” that the UK-EU trade deal divided access to tariff quotas for beef and sheep in their markets, leaving New Zealand worse off.
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“This election sends a completely wrong signal about his commitment to the rules-based global trading system and to trade liberalization and leadership,” McIvor said.
“Outside of Brexit, both the EU and the UK have said that they want to negotiate ambitious and modern new trade deals with us. The quota split goes against that claim and leaves us behind before we get to the negotiating table. “
The EU and UK commitments to the World Trade Organization signed in 1995 included tariff quotas that provide access to important New Zealand exports, such as meat, dairy and horticultural products.
Fast-track ratification of the post-Brexit trade deal between the UK and the European Union began on Christmas Day (local time) when EU ambassadors assessed the deal.
The ambassadors were briefed on the details of the draft treaty on Friday and were scheduled to meet again on Monday and have informed lawmakers in the European Parliament that they intend to make a decision on the preliminary implementation of the agreement in a few days.
Sirma Karapeeva, executive director of the New Zealand Meat Industry Association, said the association’s concern was that the quota split would erode the quality and quantity of New Zealand market access in those high-value markets. .
“It represents a major step back from the trade liberalization positions claimed by both the EU and the UK, and undermines their commitments to the WTO and their legally binding obligations,” Karapeeva.
He said the government needed to fight this measure.
“Now that Brexit has been resolved, we expect the UK and the EU to take urgent action to keep their word that New Zealand will not be harmed as a result of the Brexit process.
“While we understand that the UK and the EU have been grappling with a variety of serious problems, we urge both of them to seek to minimize the impact of their decisions on a long-standing and trusted business and political partner.”
The third round of negotiations on a Free Trade Agreement with the United Kingdom was expected to begin in January.