The Dairy Companies Association of New Zealand (DCANZ) is disappointed negotiations with India have been unable to secure a bigger step towards dairy trade liberalisation, and it is calling for a fresh strategy to address the trade challenges faced by New Zealand’s largest export sector.
The Agreements’ dairy outcomes are limited to some protein products, and products exported to India for re-export, meaning that this agreement joins the EU-New Zealand FTA and CPTPP as agreements with significant unfinished business to remove tariffs for the dairy sector.
DCANZ Chairman Guy Roper says that DCANZ is disappointed that India has been unwilling to deliver more than small changes, but does acknowledge that New Zealand trade officials and Trade Minister Todd McClay have worked tirelessly to conclude this agreement in a tight timeframe, and the deal will benefit a range of other New Zealand export sectors.
“Looking forward, and with tariffs now being largely resolved for other sectors, it’s time to ramp up focused efforts and creative approaches to bring down trade barriers for dairy.”
“As New Zealand’s trade architecture expands, the dairy sector, which accounts for one-third of total New Zealand goods exports, is increasingly unique in the level of tariffs and other trade distortions that its exporters continue to face. Not only is over 85% of global dairy consumption still locked behind tariff walls of 10% or more, but exporters are also experiencing ongoing and increasing challenges from a range of other trade distortions, including Canada’s subsidised dairy protein exports.
“We are seeking to work with the Government on a new, focused, proactive, and appropriately resourced strategy to address dairy’s trade challenges and build new export opportunities.
“We know that there is significant unmet demand for New Zealand’s high-quality dairy products in markets like India, and there will be mutual benefits for New Zealand and its trade partners if dairy protectionism can be overcome.”
Dairy has delivered $8b out of the $12.7 billion in primary sector export growth since 2021, according to MPI, highlighting dairy’s impact as the main engine for New Zealand’s export revenue growth.
“The scale of dairy means it can deliver a magnitude of growth that is unmatched by other sectors, and removing trade barriers is vital for the dairy sector to maintain its value-growth contribution to New Zealand’s economic prosperity.
“DCANZ looks forward to working with the Government to advance the same level of trade liberalisation for dairy that is now enjoyed by other New Zealand exporters in important international markets”.