Tuesday, March 19, 2024

Trade deal sows seeds of success

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New Zealand’s near $200 million dollar grain and seed exports will benefit from the Comprehensive and Progressive Trans Pacific Partnership, Grain and Seed Trade Association general manager Thomas Chin says.
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Statistics NZ data shows crop seed and grain exports from were worth $193m last year with exports going to more than 70 markets. 

Top regional markets are Australia, Asia and North America.

Key export seed crops are forage seeds including ryegrass and clover, valued at $90m, followed by vegetable seeds including carrot, radish, beet and cabbage at $86m and cereal seeds at $17m.

The seed industry is hugely affected by international developments and the CPTPP will be of enormous benefit to NZ’s overall agri sector, Chin said.

“Ultimately, we will see increased demand for NZ dairy, meat, wool and horticultural crops and it will also deliver some positives for the seed trade.

“Importantly, the CPTPP agreement requires all parties to be compliant with the 1991 International Union for the Protection of New Varieties of Plants (UPOV 91) plant breeders’ rights rules.”

Interestingly, significant partner countries such as Australia, Japan and Canada are already compliant with UPOV91 but NZ is an outlier.

Playing catch-up, NZ must now update its domestic legislation and align its plant protection regime with the global standard.

The Ministry of Business, Innovation and Employment has begun the process with a review and officials will be consulting industry stakeholders later in the year.

“Aligning with UPOV91 will give confidence to seed companies to make available their new and innovative seed technologies to farmers, which will boost their competitiveness and productivity.”

The CPTPP also provides for robust phytosanitary standards with an emphasis on scientific evidence-based standards. 

Chin said the standards are vital because they govern the continued smooth and efficient movement of seed between NZ’s trading partners.

“Without imports NZ seed companies would lose the opportunity to multiply product for offshore markets and source new germplasm for local research and development.” 

The impact of tariff reductions was best summed Trade and Export Growth Minister David Parker who said Mid Canterbury seed farmers, who produce 50% of the world’s radish seeds, will benefit from the elimination of tariffs on horticultural exports within 15 years, Chin said.

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