Editorial: We are Trumped
OPINION: Nothing it seems can be done in the short term to get Donald Trump to change his mind about removing the unfair 15% tariffs that he’s imposed on New Zealand exports to the US.
The Trans-Pacific trade deal, CPTPP, has already cut tariffs on New Zealand beef to Japan from 38.5% to 26.6%.
According to Esther Guy-Meakin, Beef + Lamb NZ’s manager international trade, over the next 15 years those tariffs will fall to 9% “which is obviously quite a big win for us”, she told Rural News.
Estimates show the meat industry expects to save $60 million in tariffs into Japan once CPTPP is fully implemented.
On December 31, 2018 the CPTPP came into force and everyone in the 11-country trade deal had to make their first tariff cut and then in January everyone made their second, she says. Because of Japan’s financial year they were allowed to make their second cut on April 1. That brought the beef tariff down to the 26.6%.
“With the Japanese market the agreement also puts us on a level playing field with Australia, which has had a deal in place for a few years. That has meant they have an advantage,” says Guy-Meakin. “The CPTPP puts us on the same footing as Australia so we will have the same preferential access as them.”
Beef exports to Japan are about 4% of NZ global beef exports by volume, but of high value.
Guy-Meakin says while we have free trade agreements with many other CPTPP countries, we didn’t with Mexico, Peru, Canada and Japan.
“That means we [now] get a good deal with those countries too,” she says.
Relationships are key to opening new trading opportunities and dealing with some of the rules that countries impose that impede the free flow of trade.
Dawn Meats chief executive Niall Browne says their joint venture with Alliance Group will create “a dynamic industry competitor”.
Tributes have flowed following the death of former Prime Minister and political and business leader, Jim Bolger. He was 90.
A drop in methane targets announced by the Government this month has pleased farmers but there are concerns that without cross-party support, the targets would change once a Labour-led Government is voted into office.
Farmer shareholders of meat processor Alliance have voted in favour of a proposed $270 million joint venture investment by Irish company, Dawn Meats.
The former chair of the Bay of Plenty Regional Council and farmer, Doug Leeder, says rural communities' biggest fear right now is the lack of long-term certainty over environmental regulations.