New Zealand was not a notable beneficiary, however, with MFNs (Most Favoured Nations) supplying fruit, vegetables and nuts achieving zero duty access more than others. Those markets supplying non-edible products (raw tobacco and cut flowers) were others to profit.
The Distribution of EU agri-food imports by regime report showed the main sectors benefiting from duty-free imports were commodities – cereals, oilseeds, oilcakes, vegetable oils, cocoa and coffee. In contrast, products most associated with import duties were fruit, fruit juice and nut preparations (42%), and meat (12%).
Markets that benefited most by value were understandably those that provide the desired commodities. These included Brazil and Argentina for their oilcakes, Brazil in particular for soybeans and coffee, West African countries for cocoa, and Indonesia and Malaysia for crude palm oil.
Those subject to Most Favoured Nation duties include New Zealand for apples and kiwifruit, and for wine. Others exposed to duties were South Africa, Chile and Australia for fruit and wine. Ecuador continues to pay duties on its bananas, which accounts for the majority of tropical fruits imported into the EU.
New Zealand was advantaged by GATT duty-free Tariff Rate Quotas (TRQs), as trade under this preferred status was almost exclusively used to import meat – sheep accounting for two-thirds, mostly from New Zealand. The United States, Australia, Argentina and Uruguay benefited from TRQ access for beef.
The main product to benefit from bilateral trade reductions were bananas (from Colombia, Costa Rica and Peru) following the entry into force of the FTAs concluded with these countries. Tariff concessions were also granted to hazelnuts from Turkey.
The report also identified the types of trade agreements that allow for preferential trade with the EU. These include bilateral trade agreements as well as the Everything But Arms (EBA) initiative, and the Tariff Rate Quotas (TRQ). The majority of EU duty-free imports were however products already liberalised under the GATT agreement.
