Welsh farmers ‘sold down the river’ by bid for Kiwi lamb deal
WELSH farmers have been “sold down the river” by the decision of the UK government to seek a comprehensive free trade deal with New Zealand, according to Plaid Cymru MP Jonathan Edwards.
International Trade Secretary Liz Truss has held exploratory talks with senior government ministers during a trip to New Zealand.
But Mr Edwards said the outcome of a trade deal was likely to put many Welsh farmers who specialise in lamb out of business.
He said: “At present there is a tarifffree quota on the import of lamb from New Zealand. After the quota is used up, tariffs have to be paid.
“But if we had a free trade deal with unlimited capacity for New Zealand to export to us, the home market would be flooded by New Zealand lamb that would undercut Welsh farmers.”
He said that for Welsh lamb farmers, it would be a double whammy.
“On the one hand they will lose a big chunk of the business they currently have with the EU because of the imposition of tariffs.
“On the other they will find themselves undercut in the domestic market by inferior products from New Zealand.
“New Zealand has much bigger farms than we do, and is able to take advantage of economies of scale.”
Mr Edwards said the threat to Welsh farmers would not be a major consideration for the UK government: “The British government will want to concentrate on financial services and banking.
“From New Zealand’s point of view, the quid pro quo will be exporting its lamb.”
New Zealand’s tariff-free quota for exporting lamb to the EU currently stands at 228,389 tonnes per year, around 10 times the equivalent quota for the next highest lamb exporting
country, Argentina.
Anne Dunn, of the Farmers’ Union of Wales, said: “Our members will naturally be concerned about the possibility of being undercut by New Zealand lamb.
“We believe it makes far more sense to maintain our trading links with the EU and its market of 500 million people which is on our doorstep rather than seeking a deal with a country which has a population of around 4.5 million people that is 11,500 miles away.”
Speaking in Wellington, Ms Truss said New Zealand was a “huge priority” in terms of the UK delivering on a new free trade agenda.
“We are going to be leaving the European Union on the October 31, with or without a deal and as part of that agenda, striking trade deals much more broadly than we have been doing, is going to be vitally important. “
She said the UK was going to have its first independent trade policy for the first time in 45 years.
“I’m a huge admirer in the way New Zealand has led the world in terms of opening up trade with partners across the globe.”
She wanted to learn from New Zealand’s experience and opening up to trade but also look at the timetable and the areas of negotiation.
“Striking a free trade deal with New Zealand is a very important priority for the UK,” she said. “It is one of the first trade deals we expect to strike.
“We have already held a consultation with the British public which got a very strong positive response, so we are almost ready to start those negotiations.”