Beef + Lamb New Zealand’s (B+LNZ) Chief Executive Sam McIvor says Australia was the sixth country to ratify the CPTPP today, meaning that the agreement can come into effect before the end of this year.
“This timing means the sector will benefit from two rounds of tariff cuts in quick succession from all member countries, with the exception of Japan. The first tariff cut will be upon entry into force of the agreement on 30 December and the second round of cuts on 1 January 2019. Japan’s second round of tariff cuts will be on 1 April 2019.
“This agreement is of great importance to the sector, especially for the Japanese market where we have lost significant market share due to Australia’s preferential access under their bilateral FTA with Japan. The CPTPP will put us on a level playing field and save the sector approximately $60 million in tariffs into Japan once the agreement is fully implemented,” says Mr McIvor.
Meat Industry Association (MIA) Chief Executive Tim Ritchie says there are a number of other countries who have expressed an interest in joining the agreement such as the United Kingdom, Taiwan, and South Korea.
“This not only highlights the economic significance of the CPTPP but also the importance of the rules -based trading system and trade liberalisation to these countries. This is particularly important in the current climate of growing protectionism.
“The red meat sector fully supports the accession of other countries to the agreement where they are committed to high quality, comprehensive outcomes,” says Mr Ritchie.
The red meat sector thanks both the previous and current governments and officials on the significant work they have undertaken to bring the agreement into force – but also to keep the agreement alive during some difficult challenges, especially the withdrawal of the United States in early 2017. We believe this is a massive step towards reinforcing the importance of trade liberalisation and the sector will continue to support the government’s efforts in this space.
For more information please contact B+LNZ’s Senior Communications Advisor Gwynn Compton on 027 838 6353.
NOTE FOR EDITORS:
CPTPP outcomes by country*
|Australia||Already zero under the Closer Economic Agreement (CER)||Already zero under CER||Already zero under CER|
|Brunei||Already zero under the ASEAN Australia New Zealand FTA (AANZFTA)||Already zero under AANZFTA||Already zero under AANZFTA|
|Canada||All beef tariffs eliminated in 6 years – from 26.5% (out of quota rate). NZ has CSTQ of 26,000 tonnes with an in-quota rate of zero.||Already applied at zero but CPTPP will bind them at zero.||Eliminated over five years or less|
|Chile||Already zero under the P4 Agreement||Already zero under P4||Already zero under P4|
|Japan||Tariffs on key lines reduced from 38.5% to 9% over 15 years, with a TPP-wide safeguard set above current CPTPP trade volumes||All sheepmeat tariffs already applied at zero but CPTPP will bind at zero||Eliminated over 16 years or less|
|Malaysia||Already zero under AANZFTA||Already zero under AANZFTA||Eliminates the few lines that were not already zero under AANZFTA|
|Mexico||Beef tariffs at 25% eliminated over 10 years||Sheepmeat tariffs at 10% eliminated over 8 years||Eliminated over 15 years or less|
|Peru||Beef tariffs at 17% eliminated over 11 years||Sheepmeat tariffs at 9% eliminated on Entry into Force (EIF)||Eliminated|
|Singapore||Already zero under AANZFTA||Already zero under AANZFTA||Already zero under AANZFTA|
|Vietnam||Zero from 2018 under AANZFTA||Zero from 2016 under AANZFTA||Eliminates the few lines that were not already zero under AANZFTA|
* Please note for information purposes only. This information should not be relied upon to make any financial decisions and independent professional advice should be obtained.