Minister for Trade and Export Growth Hon David Parker signed the CPTPP in Chile today, alongside representatives of the 10 other member countries Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, and Vietnam.
B+LNZ Chief Executive Sam McIvor says the sector will save $63* million in tariffs once the trade agreement is fully implemented.
“The CPTPP is especially important for the sector given the overall export focus. The New Zealand sheep and beef sector exports close to 90% of its production totaling $7.5 billion, on which we paid $231 million of tariffs in 2016.
“Over one-third of the total tariffs paid in 2016 were to CPTPP member countries, with a significant proportion of those tariffs paid in Japan ($73 million) - where applied tariffs on our beef exports are 38.5%.
“In the absence of CPTPP, we have been losing significant market share in countries where our competitors have preferential access – particularly Australia’s beef access into Japan.”
Australia’s beef exports to Japan have increased by a cumulative $1 billion since its Free Trade Agreement (FTA) came into force, which has resulted in New Zealand losing out on approximately $53 million worth of beef exports to Japan over the same period.
MIA Chief Executive Tim Ritchie says the CPTPP will immediately put New Zealand’s red meat sector on a level playing field.
“It will also prevent Japan from imposing a safeguard tariff on New Zealand beef like they did last year on frozen beef raising the tariff to 50%.
“CPTPP will give New Zealand a competitive advantage over the United States beef industry, which will continue to face either the 38.5% tariff or the higher 50% tariff if the safeguards are triggered again.
“The CPTPP also contains ways to address complex non-tariff barriers, which are often costlier than tariffs and more difficult to quantify. This will prove useful in terms of opening markets and ensuring that they stay open.
“It will be positive for exports and help raise the living standards of New Zealanders. The red meat sector exports directly support 80,000 jobs (and families) employed across New Zealand, mostly in the regions.
“B+LNZ and the MIA support the government’s work in trade liberalisation and look forward to the expeditious ratification of the CPTPP.”
*Based on 2016 Trade data
For more information contact Sam Halstead, 0274746065.