Brexit: UK deal with EU hurts New Zealand exports, says Beef and Lamb

By RNZ

The meat industry is urging the government to fight the new quotas for local exporters as part of the new trade agreement between the UK and the European Union.

The post-Brexit deal will mean that access will be more controlled.

A new quota will force kiwi beef and sheep meat exporters to split their product between the UK and the EU, even if one of the markets is failing.

The Executive Director of the Meat Industry Association, Sirma Karapeeva, said it was a big step back in trade.

She said that not only would farmers get lower returns, but they may not get market access rights guaranteed by the World Trade Organization.

Beef and Lamb CEO Sam McIvor told RNZ before Brexit that there was 228,000 tonnes of sheep meat access to the EU, including the UK, and 1,300 tonnes of high-quality beef.

“What’s happening with those quotas is that they have now been roughly split 50/50 between the UK and the EU, so overnight we’ve had a significant reduction in flexibility and the value that we can accumulate. of those quotas because we have lost the flexibility to place the product in the EU or the UK as required by customers. “

He said export markets were hugely important to New Zealand.

“What we will see here is a possible reduction in export earnings to New Zealand. That affects farmers, it affects rural communities and it affects all communities in New Zealand.”

McIvor said there were fears that there would be future tariffs for importers like New Zealand’s.

Beef and lamb ask for flexibility in the quota.

He said the government had done a great job defending exporters and that Beef and Lamb now hoped that the EU and UK would keep their word that New Zealand would be no worse off with Brexit.

Trade and Export Growth Minister Damien O’Connor told RNZ that he did not expect more tariffs.

He said New Zealand was in trade negotiations with both the UK and the EU.

“We have a great team of trade negotiators, we are sincere, we are honest and we will do everything possible to ensure that our exporters get at least the equivalent treatment that we have had and, where possible, better treatment.”

He said the Government was aware of the possible splitting of quotas and had been trying to assure the UK and the EU that flexibility would help their producers so that there was no oversupply at certain times of the year and a shortage of supplies at others.