Beef + Lamb NZ and the Meat Indsutry Association have lodged protests in Brussells, London and Geneva after Britain and the EU went to the World Trade Organisation with a formal plan to split the quota 228,000 sheep meat quota.
That would remove NZ exporters’ ability to adjust the destination of its exports in response to individual country market conditions across the 28 EU members, association chief executive Tim Ritchie said.
“Markets are dynamic.
“Domestic production and consumer demand continues to evolve and it is important for market stability that NZ’s sheep meat and beef exporters are able to factor that into their marketing plans.
NZ has had this ability since the establishment of the WTO quotas and has proved its credentials as a responsible participant.
Sales to the EU. NZ’s largest red meat and co-product market, are worth $2 billion a year and account for 23% of the industry’s total exports.
The timing of this proposal is confusing given the terms of the Britain’s exit from the EU are yet to be negotiated.
“Without clarity and details around the future trading relationship between the United Kingdom and EU it is very difficult to assess the implications of their proposal.
“It is therefore both illogical and unacceptable to be put in a position of having to negotiate an arbitrary split of our legally binding market access rights when there is so much uncertainty about the shape of the future trading relationship between the EU and the UK,” Ritchie said.
B+LNZ chief executive Sam McIvor said the NZ red meat sector is not seeking a windfall from the Brexit process but the upholding of its legal rights.
“The tariff rate quotas form part of the EU and UK’s WTO commitments and are legally binding rights and obligations.
“We expect both the EU and the UK to honour their legal obligations and commitments.”
B+ LNZ and the MIA both said the issue is a high priority and they have registered their opposition to the EU’s proposal in person in Brussels, Geneva and London and through a joint written submission to the EU Commission. They are also working on the issue with the Government.
