Meat Industry Association chief executive Sirma Karapeeva. Photo / Supplied
Meat Industry Association chief executive Sirma Karapeeva. Photo / Supplied
The Meat Industry Association said the Free Trade Agreement (FTA) between New Zealand and the United Kingdom would eventually give local lamb and beef exporters quota and tariff-free access to that market for the first time in decades.
Under the FTA, New Zealand's beef and sheepmeat exports to the UKwill be fully liberalised over time, with no duties from the 16th year after the deal comes into force following ratification by both countries.
During this time, beef and sheepmeat will be subject to duty-free transitional quotas with the quota for New Zealand beef increasing in annual instalments from a starting point of 12,000 tonnes until it reaches 60,000 tonnes in year 15, after which it will be duty and tariff-free.
New Zealand exporters are expected to save about $37 million a year on tariff elimination alone from day one, the association said.
"New Zealand has not had tariff-free access into the UK since Britain joined the European Economic Community (EEC) in 1973 so this deal will deliver a major boost for sheep and beef farmers and exporters," Meat Industry Association chief executive Sirma Karapeeva said in a statement.
The FTA was signed in London by Trade Minister Damien O'Connor overnight.
"This FTA realises our ambitions for a high-quality agreement with greater access to an important market for New Zealand beef and lamb," Karapeeva said.
"It is also a win for New Zealand chilled-meat exports because it will ensure the produce can reach the final customer quickly and in optimum condition."
The agreement provided a solid platform for closer co-operation between New Zealand and UK red meat sectors and will help to strengthen the ties between the two countries.
Sam McIvor, chief executive of Beef and Lamb New Zealand, said the FTA would further strengthen New Zealand's already diverse export base.
"New Zealand's free range, pasture-raised farming systems are highly regarded by UK consumers and the perfect complement to the United Kingdom's northern hemisphere production season," he said.
The FTA needs to be ratified by both countries before it can come into force.
