US Launches Lamb Safeguard Probe, NZ Exports at Risk
As expected, the US has launched a safeguard investigation into lamb imports, a move that could impact New Zealand sheepmeat returns.
That's the view of special agricultural trade envoy Nathan Guy, who recently returned from a visit to key export markets - the US, the UK, and Europe.
Paris Agreement Withdrawal Could Trigger Trade Renegotiations
He says, as the election campaign steps up, politicians should be careful.
"We've got to continue to show and prove that we are sustainable, that we are focused on the environment and doing our utmost to meet expectations from these high-value markets," he told Dairy News.
"That's why in this election campaign, when some political parties propose to pull out of Paris, they should be careful about what they are calling for.
"Because if this happened, we would have to renegotiate two very important free trade agreements, being the UK and the EU FTAs.
"What would happen is we'd have to put two gold-plated FTAs through this shredder and renegotiate."
Election Debate Intensifies Over Paris Agreement Membership
While National has ruled out withdrawing from the Paris Agreement, an international treaty adopted in 2015 to limit global average temperature increases, coalition partners NZ First and ACT differ.
NZ First leader Winston Peters confirmed at Fieldays this month that his party would campaign on leaving the accord.
ACT says it will campaign on reforming the Paris Agreement and, if that fails, to withdraw.
Dairy and Red Meat Exports Could Face Immediate Pressure
Guy, a former Minister for Primary Industries for National, warns that schedule prices for dairy and red meat will drop overnight if the EU and UK FTAs are dismantled because they don't meet the expectations of consumers.
"It took us decades to get a high-value free trade agreement with the EU.
"I was doing the rounds when I was Minister, talking to countries about the importance of this free trade agreement."
Half a Billion Consumers Value New Zealand's Sustainability Reputation
The EU's 450 million consumers, predominantly a growing middle class, trust New Zealand products.
Across the English Channel, the UK market adds another 70m consumers, again a well-urbanised and high-value market.
"These are two markets made up of half a billion people that love New Zealand products, where our reputation of sustainability and quality standards is paramount.
"Why would we want to sit down and have to re-negotiate two gold-plated FTAs?"
UK Supermarket Buyers Hold Significant Influence
Guy also noted that during his trip, he found that the top four UK supermarket buyers have a lot of power.
The buyers, who source products for the respective supermarkets, are focused on ESG - environment, social and governance.
The big four supermarkets are Tesco, Sainsbury's, Asda and Morrisons.
He says these buyers should be brought to New Zealand to see first-hand the standards practiced by our food producers and processors.
"We must get these key influencers down to New Zealand to understand our quality standards, to get in processing plants, to stand in the middle of farms, to understand and see. Seeing is believing.
"We don't want to lose sight of the fact, as a small trading nation in the South Pacific, brand New Zealand is paramount to getting our product to market.
"We've got to continue to show and prove that we are sustainable, that we are focused on the environment and doing our utmost to meet these high-value markets."
