Chair of the Dairy Companies Association of New Zealand (DCANZ), Malcolm Bailey, has today said that it is extremely important that the Trans Pacific Partnership (TPP) negotiations on market access continue to be based on the principles agreed at Honolulu for comprehensive coverage of all products and for full tariff elimination across all countries.
“Recent comments from a range of sources indicate that this objective may not be achieved and that less than full elimination will be considered an acceptable outcome,” said Mr Bailey. This applies particularly to Japan where there are ongoing negotiation on market access. Japan maintains very high barriers to imports of dairy products with tariffs as high as 200 to 300 percent. This is coupled with limited access through tariff quotas.
“While elimination can occur over a time period, it is crucial that there is an endpoint of a zero tariff and a transition regime that allows entry of product at zero tariffs,” he said. “TPP has been promoted as a high quality agreement. Anything less than elimination reduces its impact and the quality of the end result.
And excluding particular products or tariff lines is not acceptable either.” Mr Bailey said Canada also has high tariffs that reach to 200 to 300 percent. “They effectively seal off all the Canadian market to imports and maintain a very high cost industry. Tariffs in other countries in TPP including the USA and Mexico also act as impediments to trade. “DCANZ looks forward to open dairy markets through all of TPP.”
Malcolm Bailey, DCANZ Chair
The Dairy Companies Association of New Zealand (DCANZ) was formed in July 2003 to co-ordinate and represent the collective public policy interests of its member dairy companies.
Its members comprise Fonterra Co-operative Group Ltd, Tatua Co-operative Dairy Company Ltd, Westland Milk Products, Fonterra Brands (NZ) Ltd, Goodman Fielder Ltd, Synlait Milk Ltd, Open Country Dairies Ltd, Miraka Ltd, Dairy Goat Co-operative, Gardians and Oceania Dairy.