New Zealand vows to revise trade strategy as global markets become more protectionist

This is stated in the latest study by the New Zealand MEAT Industry Association (MIA) and Beef + Lamb New Zealand (B+LNZ), which published the latest edition of the biennial report "Barriers to International Trade".

The report shows that under New Zealand's free trade agreements, the level of tariffs on red meat has decreased from $366 million in 2010 to $193 million in 2022 (a $173 million reduction).

However, red meat tariffs increased by 22% between 2021 and 2022 due to New Zealand exporting more to markets with high tariff rates last year.

“For decades, our focus as a trading power has been on securing free trade agreements with lucrative markets in Asia and beyond, and this is something we have been very good at,” said Sirma Karapeyeva, MIA Executive DIRECTOR . “But the world is changing and the international landscape is now characterized by increased protectionism, geopolitical tensions and more economic instability in the wake of the covid pandemic . As a country, we must ensure that our trade strategy is responsive to these changing conditions, and a central part of this is to ensure that we get the most out of the free trade agreements that we already have.”

Ms Karapeeva said that work should also include attention to non-tariff measures, which are also applied overseas, and which unnecessarily reduce the competitiveness of New Zealand's red meat exports.

"Our internal research shows that New Zealand's red meat sector faces an average of 2.3 times more non-tariff measures than the global average, and this increases red meat EXPORT costs by $1.5 billion a year."

These unnecessary technical barriers to trade can include requirements for documents to be certified by the importing country's consulate, or the imposition of overly stringent standards such as product expiration dates that do not match scientific evidence, among many others.

Sam McIvor, chief executive of B+LNZ, said these tariff and non-tariff barriers are not theoretical costs to farmers, but are real issues that need to be prioritized as part of New Zealand's trade strategy.

New Zealand farmers and red meat producers generated almost $12 billion in export earnings in 2022, and the sector is the country's second-largest producer of export commodities. The industry also employs 92,000 people, which is five percent of the total employment in the country.