NZ wins WTO trade case for better beef access
New Zealand is looking forward to a step up in the beef trade with Indonesia after it won an appeal at the World Trade Organisation against import barriers.
Trade Minister David Parker said it was estimated New Zealand had lost about $1 billion of beef sales since 2011.
In 2010 Indonesia was New Zealand’s second largest beef market, taking 48,823 tonnes worth $185 million, but access was closed off markedly in an Indonesian bid for self-sufficiency, falling to 8899t in 2015 - a decline of 82 per cent.
Meat Industry Association chief executive Tim Ritchie said there would not be an immediate impact because trade had already started to liberalise a year ago. The WTO confirmed last week that Indonesian agricultural trade barriers were inconsistent with global trade rules. The decision upholds key findings of a WTO dispute settlement panel, which in December last year ruled in New Zealand’s favour and was subsequently appealed by Indonesia. ‘‘The barriers have been counter-productive with domestic shortages of beef and price rises. Since December sales of bovine offal have bounced back the most,’’ Ritchie said. New Zealand and the United States initiated the case in 2013, with a further 14 countries associated with it. Parker said the case illustrated the value that New Zealand gained from international trade rules. It was only the second case New Zealand had taken to the WTO in the last decade.
The other was over access for apples into Australia, won by New Zealand in 2010. ‘‘These barriers affect opportunities for many New Zealand agricultural exporters, including producers of onions, apples and beef. New Zealand has a strong and mutually beneficial relationship with Indonesia, and this trade disagreement is only a small part of that broader bilateral relationship.’’ Parker described Indonesia’s approach to the WTO hearings as ‘‘exemplary, collegial and constructive’’.