A Business Innovation and Employment Ministry spokesman said it was too early to speculate on the implications for NZ exporters of the UK leaving the union, but it was following international analysis on what that may involve.
Part of that investigation was what it may mean for NZ’s fundamental trade frameworks, such as the World Trade Organisation Country Specific Tariff Rate Quotas for sheepmeat and other goods.
“Regardless of the referendum outcome, NZ has and will continue to have a significant political and economic interest in both the UK and EU.
“Should UK voters decide Britain should leave the EU, New Zealand would take a constructive approach to preserve its existing links with both the UK and EU, and look to opportunities to deepen these relationships,” a spokesman said.
The June 23 referendum on whether Britain stays part of Europe was creating uncertainty for exporters about whether NZ would continue to enjoy preferential access for some dairy products and sheep meat.
In 2014 the tariff-free 228,000-tonne sheep meat market was worth $1.9 billion but more importantly, what started out in 1973 as tariff-free access for NZ to the UK, has expanded to preferential access to European markets.
Silver Fern Farms chief executive Dean Hamilton said repercussions for NZ exporters was a case of initially seeing how the referendum played out and then repercussions for trade agreements.
“The issue will be if they do come out, what is the transition process?”
Hamilton, who has just returned from a visit to Europe, said the issue, labelled Brexit, dominated UK media.
Should British voters choose to exit the EU, Hamilton said an option could be for the quota to be split between the UK and EU.
On the sidelines, NZ has started negotiating a free trade agreement with Europe and Hamilton said that could provide tariff-free access for NZ chilled beef, a privilege Australia enjoys but costs NZ exporters a 25% tariff rate.
Alliance Group chairman Murray Taggart said it was too early to speculate what may happen but he said any negotiations would likely be at a Government to Government level.
“It is a very important market, both the UK and EU, and they are distinctly different and markets within Europe are also different.
“It is very, very important and certainly critical that we hang on to it.”
Dairy Companies Association of New Zealand chairman Malcolm Bailey said the uncertainty had created some anxiety for exporters.
“We would be a little bit anxious,” Bailey said should Britain vote to leave.
Import tariffs on dairy products, apart from 77,000t of butter, meant trading with Europe was not economic for NZ dairy exporters but Bailey said NZ would hate to lose it.
