Korean tar­iff lift pleases DCA

Matamata Chronicle - - Rural Delivery -

The Dairy Com­pa­nies As­so­ci­a­tion of New Zealand (DCANZ) has wel­comed the suc­cess­ful con­clu­sion of Free Trade Agree­ment (FTA) ne­go­ti­a­tions be­tween New Zealand and Korea.

The agree­ment will re­sult in elim­i­na­tion of tar­iffs on the majority of dairy tar­iff lines over rea­son­able pe­ri­ods.

For cheese, there will be a tran­si­tional quota of 7000 tonnes grow­ing at 3 per cent a year un­til elim­i­na­tion.

For but­ter, there will be an 800 tonne quota in­creas­ing at 3 per cent a year un­til elim­i­na­tion.

The agree­ment also in­cludes a per­ma­nent quota on milk pow­der which be­gins at 1500 tonnes and then in­creases at 3 per cent an an­num un­til year 10.

Th­ese re­sults com­pare favourably with the re­sults of the pre­vi­ous FTAs that Korea has con­cluded with the Euro­pean Union, United States and Aus­tralia.

DCANZ chair­man Mal­colm Bai­ley said the agree­ment was a good out­come given dif­fi­cult ne­go­ti­a­tions.

‘‘ With other larger coun­tries hav­ing con­cluded FTAs al­ready with Korea, it was un­doubt­edly a hard road for Min­is­ter Groser and his ne­go­tia­tors to get th­ese out­comes,’’ he said.

‘‘They have done a fine job in those cir­cum­stances and the dairy in­dus­try deeply ap­pre­ci­ates their ef­forts.’’

‘‘New Zealand’s grow­ing suite of trade and eco­nomic co-op­er­a­tion agree­ments is tes­ta­ment to the com­mend­able bi­par­ti­san ap­proach suc­ces­sive New Zealand Gov­ern­ments have taken to trade lib­er­al­i­sa­tion.

‘‘This ap­proach con­tin­ues to be to the ben­e­fit of New Zealand as a whole, as well as the dairy sec­tor,’’ Bai­ley said.

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