Central Otago apple growers welcome free trade agreement

Central Otago apple growers are looking forward to a new free trade agreement that will directly benefit them.

Central Otago apple growers will benefit from tariff removals and improved trade access to 10 countries, including Japan, as part of the 11-country free trade agreement negotiated this month.

The Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) was agreed to in Santiago on March 8, subject to ratification by several of the countries involved, including New Zealand.

Tariffs on all New Zealand exports to signatory countries will be removed, apart from some on beef to Japan, and certain dairy products to Japan, Canada and Mexico. There will be partial reductions and duty-free quotas to those countries.

For Central Otago apple growers, that means all tariffs on their apples will be removed within 11 years.

Horticulture New Zealand chief executive Mike Chapman said more immediate benefits for New Zealand's exporters would include removing trade barriers and providing easier access for goods.

He said the agreement with Japan was one of the highlights for New Zealand.

''Australia has got preferential access to Japan [for apples] but we haven't.

''The agreement puts us on a level playing field with Australia and that is an important point for Central Otago growers.

''Japan is really important as it is the third largest economy in the world and that is a real win for us.

''And with emerging economies like Vietnam, that is really important as well.''

He said the agreement would significantly improve trade opportunities.

''As an example, the free trade agreement we signed with China, our trade with them since then has quadrupled.''

There were also non-tangible benefits such as agreed methods of dealing with pest and disease issues and dispute resolutions, reducing customs clearance times and lower compliance costs.

The treaty also includes enforceable standards for labour and worker safety.

The new agreement could eventually save New Zealand about $222million in tariffs annually.

''The agreement will be a lift to the fruit and vege industry right across the country,'' Mr Chapman said.

''It is about securing our long-term future and it gives us access to 480 million people.''

He said for New Zealand to ratify the agreement, Parliament needed to enact empowering legislation and that might happen by Christmas.

-By Yvonne O'Hara

Southern Rural Life