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Summary
- NZ Government welcomed the free trade deal between the EU and the UK.
- The NZ government looks forward to discussing FTAs with both the parties but protecting quota access in the UK and the EU has to be solved.
- NZ beef and lamb exporters are unhappy after restrictions on the volume and location.
NZ government has welcomed the EU and Britain on the Brexit deal’s conclusion on 25 December. The EU and the UK have reached a free trade deal post-Brexit with both of them developing 2 distinct markets and putting an end to the free movement of trade.
Britain will exit the EU trading regulations and would imply significant alterations for businesses.
Foreign Minister Hon Nanaia Mahuta stated that NZ looked forward to growing its connections with the UK and the EU in 2021.This would entail discussions of high quality and inclusive FTAs with both the parties, which is stable with Aotearoa NZ's Trade for All plan.
Aotearoa NZ expects to resolve the issue of preserving quota access in both the markets.
Source: Shutterstock
She also noted that NZ had pursued the Brexit talks between the UK and the EU with enthusiasm, given its industries and people's potential effect.
ALSO READ: UK and EU Agree to Continue Brexit Deal Negotiations for Viable Solution
In recent months, the Government has stepped up its work to support NZ companies and stakeholders in wake of reforms and potential disruptions expected from 1 January.
Meat exporters left concerned
The new trade deal between both the parties has left meat exporters concerned that the pact would compromise NZ's access to the market.
According to Beef and Lamb NZ's Sam Mclvor, the trade deal has split the tariff limit for beef and sheepmeat into their respective markets, leaving NZ in a problematic situation.
Source: Shutterstock
NZ has a fixed supply of 1,300 tonnes of beef and 228,000 tonnes of lamb sold to the EU and the UK, with market demand and the most significant financial gain deciding the location of the meat being transported.
ALSO READ: NZ exports stay flat in November even after a drop in commodity prices
Under the new Brexit law, the quota will be divided between the two parties. Lamb shipments will be split equally, with 60% of the beef being exported to the EU and 40% being shipped to the UK.
The new law takes away exporters' flexibility to adapt to global conditions and market demands, as per the Meat Industry Association.
