Call for action on threats
New Zealand must consider a complaint to the World Trade Organisation if the European Union follows through on threats to remove preferential access for lamb and butter postBrexit, National says.
National’s Foreign Affairs and Trade spokesperson, Todd McClay, said New Zealand exporters were set to have their rights and market access severely limited.
‘‘The EU parliament has taken a major step towards unilaterally restricting New Zealand’s trade with the bloc by voting to remove our duty free tariff rate quotas for lamb and butter,’’ he said.
Tariff rate quotas set the amount of New Zealand goods, such as sheep meat and butter, that can be exported to the European Union (EU) at a lower tariff rate.
Britain’s planned exit from the union means those quotas must be split between Britain and the 27 countries that will remain in the union.
McLay said New Zealand exporters had relied on the quotas for almost 50 years, and the EU couldn’t be allowed to remove them unilaterally.
‘‘The Government must act swiftly and inform the EU that any move to remove [the quotas] will result in a WTO complaint,’’ he said. ‘‘This is now urgent. If there is a no-deal Brexit our rights could be restricted as soon as March 30 this year with some exporters facing higher tariffs into the UK and EU market.
Minister of Trade and Export Growth, David Parker, said the Government was leaving no stone unturned to protect New Zealand’s quota access postBrexit.
Ministers and officials had raised the matter at every opportunity with EU and UK leaders since the issue first emerged, and it would also be discussed with the union’s Agriculture Commissioner Phil Hogan on an upcoming visit to New Zealand.
‘‘We are working hard to hold them to the assurances they have given us that New Zealand will not be left worse off as a result of Brexit,’’ Parker said.
Speculation the EU and the UK were developing proposals to split the quotas in a way that would reduce access for countries including New Zealand arose in late 2017.
New Zealand and six other concerned WTO members wrote to the EU and UK in September 2017 outlining the reasons the approach was unacceptable.
‘‘We have and will continue to fight this proposal and encourage the EU and the UK to re-think their approach. It’s important we find a mutually acceptable solution that will not leave our exporters disadvantaged,’’ Parker said.
Parker said it was particularly disappointing to see partners who were usually defenders of the multilateral rules-based trading system, acting unilaterally in a way that undermined commitments for quota access that other WTO Members had negotiated hard and in good faith for in previous decades. ‘‘Nevertheless, the Government is committed to working with the EU and the UK to resolve these issues in a mutually satisfactory manner,’’ he said. ‘‘This is our priority Brexit trade issue and we have not ruled out any options for pursuing an outcome that makes sure our exporters are no worse off.’’