TPP deal backed by kiwifruit giant

Zespri boss Lain Jager says the TPP is good news for kiwifruit growers. Photo / File

The elimination of Japanese tariffs on the region's kiwifruit, as part of the Trans-Pacific Partnership (TPP) Agreement, could have the potential to see Northland's growers keep more money in their pockets each year.

Kiwifruit market company, Zespri, which sells fruit from 403ha of production in Northland, said it hoped yesterday's signing of the free trade agreement could see its growers benefiting from opening up free trade with 11 TPP partners, with the most immediate impact coming through trade with Japan.

The deal would eliminate tariffs on kiwifruit exports when it comes into force in two years.

This is a ray of light for growers following the recent discovery of kiwifruit-killing disease, Psa-V, in a Maungatapere orchard.

While the disease could cause dieback, it did not affect access to export markets as it did not spread via the fruit itself.

Zespri chief executive Lain Jager said that in 2014, the industry paid over $15 million in tariffs into Japan, Zespri's largest country market.

"If this tariff relief was passed straight through to New Zealand growers, it would equate to savings of over $1000 for every hectare of kiwifruit grown in New Zealand," he said. A better deal for Japanese consumers would also see a bigger demand for the product.

Meanwhile, tariffs on all other New Zealand exports to TPP countries - including fruit and vegetables, sheep meat, forestry products, seafood, wine and industrial products - would be eliminated under the deal.

Northland companies would also have "fair access" to do business with TPP partners - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, the United States and Vietnam, as well as greater opportunities to bid for government procurement contracts in those nations.

Tariffs were not removed, however, for dairy exporters into the US, Japan, Canada and Mexico, although NZ would have "preferential access to new quotas" with those partners. Also, tariffs would remain on beef exports to Japan, but reduce from 38.5 per cent to 9 per cent.

David Wilson, Northland Inc chief executive said he believed the TPP was positive for Northland. "We're aware that it falls short against the expectations of the dairy sector and this has caused some unhappiness.

"We would hope that in time a better deal can be worked out to the satisfaction of this industry as it plays an important role in the Northland economy."

Meanwhile, Tony Collins, CEO, New Zealand Chambers of Commerce Northland said the deal could open up opportunities in forestry.

"Any significant opportunities to increase our export trade could help promote better utilisation of Northport," he said.