The second round of free-trade negotiations between NZ and the European Union is under way in Wellington with 31 European officials in the capital to discuss a deal politicians say they’re keen to fast-track.
In a 90-minute public forum the chief negotiators, Peter Berz for the EU and Martin Harvey of the Ministry of Foreign Affairs and Trade, said there is a lot of commonality between the parties but agriculture is a sticking point.
Harvey said NZ’s size is something trade negotiators always have to deal with.
While NZ’s agricultural exporters are well-known, their reputation can inflate the perceived threat to other markets. The 29-member EU is the world’s largest agricultural trading entity.
“Often the perception is way out of whack with what the reality is, both of current trade and what would actually happen under a liberalisation scenario,” he said.
Harvey drew on the EU’s impact assessment of free-trade agreements with both NZ and Australia to support his point.
The modelling indicated a deal would increase EU exports of meat such as pork, dairy and other food and beverages while NZ exports of dairy, beef and horticulture would rise.
European beef exports would face the biggest decline while NZ beef and horticulture output and dairy, to a smaller extent, would increase.
Berz said the EU is aware NZ’s primary export products are agricultural and greater market access will be a key sticking point.
However, agriculture always comes up as an issue in all the bloc’s negotiations, he said.
Harvey said geographical indications, which restrict the use of regional and other names in the sale of products, are a particular area that will need to be worked through.
Both parties have been tasked by politicians to pursue an ambitious agenda on sustainable development goals to encourage better outcomes for areas including the environment, labour rights and corporate social responsibility.
The EU is in the process of commissioning a trade and sustainability impact assessment, which will analyse the agreement’s potential impacts on issues such as human rights, gender and the environment.
The negotiations are taking place against the backdrop of growing trade protectionism, something Finance Minister Grant Robertson noted yesterday as a key risk to the domestic economy.
Meantime, International Monetary Fund managing director Christine Lagarde opened the annual IMF-World Bank meetings in Bali, Indonesia, with a speech entitled How global trade can promote growth for all.
The three priorities in building a trade system that works for everyone involve cooling disputes, modernising the system and introducing domestic policies to ensure trade benefits more people, she said. – BusinessDesk
