TPP Talks To Open Market For Beef & Dairy Producers

GLOBAL - Asia-Pacific Economic Cooperation (APEC) members have announced the broad outlines of a Trans-Pacific Partnership (TPP) agreement, which will benefit Australia and New Zealand's agricultural sectors.
calendar icon 15 November 2011
clock icon 3 minute read

The TPP involves nine countries including Brunei, Chile, New Zealand, Singapore, Viet Nam, Australia, Malaysia, Peru and the United States.

The TPP aims to establish a comprehensive, next-generation regional agreement that liberalizes trade and investment and addresses new and traditional trade issues and 21st-century challenges.

Canada, Japan and Mexico have all expressed an interest in participating in the TPP.

Beef and lamb

Beef and Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) say the significant progress made towards reducing trade barriers at the APEC meeting has the potential to transform the international marketing opportunities for the New Zealand sheep and beef industry.

B+LNZ Chairman Mike Petersen and MIA Chairman, Bill Falconer said the outcomes were important on many levels.

"The announcement by President Obama of an ambitious timetable for completion of the Trans-Pacific Partnership (TPP) is huge news for our sector. This grouping of countries would provide a partnership zone bigger than Europe and importantly includes key growing economies in the Asia Pacific region."

"Japan's intention to join TPP talks is also very welcome news. The tariffs paid on beef and sheepmeat exports into Japan are a significant cost to all importing countries and any agreement will need to focus on full tariff elimination over time," Mr Petersen said.

Dairy

Group Director for Fonterra's Supplier and External Relations Kelvin Wickham said a comprehensive agreement covering all sectors had considerable potential to liberalise dairy trade to meet the existing and quickly growing demand in the TPP member countries.

"The Asia-Pacific region is already a major market for Fonterra and is expected to be a major growth area for us in the future," Mr Wickham said.

Mr Wickham said Fonterra was also pleased that Japan announced its intention to begin consultations with the existing membership toward joining the TPP negotiations.

"Japan is a large dairy market for New Zealand dairy products but exporters face substantial barriers to trade at the moment."

"We see a high quality outcome for dairy as a crucial part of Japan joining the TPP."

Indonesia Joins ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

Australia and New Zealand have also welcomed Indonesia’s announcement that it had completed domestic procedures to enable the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) to enter into force for Indonesia, benefiting both beef and dairy producers.

“This means that from 10 January 2012 businesses on both sides of the Tasman will be able to capitalise on the FTA’s considerable opportunities for mutually advantageous trade with Indonesia – one of our most important trading partners,” said Tim Groser, New Zealand’s Minister of Trade.

Indonesia is a major emerging economy with the world’s fourth largest population. It is the largest economy in South East Asia accounting for over one third of ASEAN’s GDP and is expected to be one of the world’s top 10 economies by 2030. “Indonesia’s importance to Australia and New Zealand will only grow,” said Craig Emerson, Australia’s Trade Minister.

By 2015, Australian and New Zealand exporters will receive tariff-free treatment in Indonesia on more than 90 per cent of tariff items, compared with only 11 per cent now.

TheCattleSite News Desk

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