Brexit makes dairy export market harder with tariffs

WELLINGTON: The dairy industry wants export tariffs scrapped as it tries to get the best bang for its buck overseas — and does not think the new postBrexit trade deal will help.

New Zealand is in the throes of sorting out trade agreements with the UK and the European bloc, after the two sides finally put a deal on the table just days before the deadline.

Dairy Companies Association of New Zealand executive director Kimberly Crewther said our exporters had battled tariffs as they tried to find their way in the market.

This even happened when the UK was part of the EU.

Ms Crewther said there was no change with the new deal.

‘‘What this trade deal between the UK and the EU means is that we continue to be at a significant tariff disadvantage to each of them as an exporter into the other’s market,’’ she said.

There was also a new EUUK split quota for butter and cheese — roughly 60/40 in favour of the EU.

‘‘For dairy, it diminishes the trade opportunities.

‘‘I think what it significantly means is that removing the tariffs and the quota restrictions that we face into the markets becomes even more important,’’ she said.

The strict quotas meant there would be less ability to switch between markets if one was not performing well.

‘‘The loss of flexibility means we are worse off . . . We support the New Zealand Government efforts to maintain flexibility.’’

She said if UK and EU could eliminate tariffs between them, New Zealand should be able to.