Wednesday, April 17, 2024

FROM THE RIDGE: Economic suicide and absolute madness

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I attended a small function in Napier where European Union Agriculture and Rural Development Commissioner Phil Hogan spoke. He and his delegation were briefly in the country negotiating with our own officials over a trade deal between the EU and New Zealand, which sounds promising. Later, when I asked when this might happen, he said it could be early in 2020.
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“The EU and NZ share many things and it would be unthinkable if we couldn’t do a trade deal,” he said.

He assured us we are not in a queue behind Australia and we don’t need to look over our shoulder at our neighbours. The EU is keen to do a deal with us and it seems it will happen, which can only be a good thing for primary producers here.

As commissioner he is one of the EU’s key decision-makers on agricultural issues, including reform of the EU’s Common Agricultural Policy, EU positions on agriculture in the World Trade Organisation and agricultural market access offers in free-trade negotiations.

He was surprisingly free with his comments about Brexit, though, given European Council President Donald Tusk recently said “There is a special place in Hell for people who promoted Brexit without a plan”, he was relatively diplomatic.

“The EU has done everything they can to get an accommodation with the United Kingdom but it takes two to tango,” Hogan said.

He went on to say it is sad to see what is happening in the UK. He pointed out the UK is just 60% self-sufficient in food and one might assume prices will go up post Brexit and food prices are very important to consumers who are also voters.

“It is not easy to get into the EU but as we are seeing, it’s a great deal harder getting out,” he said.

He spoke of UK politicians, many whom had spent 40 years bagging the EU, and said sometimes you must be careful what you wish for.

Earlier I’d taken one of the EU delegation aside for a radio interview.

His name was John Clark and when I asked what his role was he told me he is the EU’s agricultural trade negotiator for the free-trade agreement with NZ. He was recently involved in delivering the EU’s free-trade deal with Japan. That is the biggest trade deal signed by anybody.

He is British but lives in Brussels. He said Brexit is “very unfortunate and an act of economic suicide and absolute madness” so he, too, wasn’t not mincing his words.

He felt the only thing the UK Parliament agrees on is not to have a hard Brexit so feels common sense will prevail.

I’m thinking that with just 35 days left they better start looking hard for that common sense in very short measure.

And American President Donald Trump pulling out of the international sphere has created opportunities for the EU to do trade deals with the likes of Japan.

Trump’s destabilising of the WTO has caused major concerns. He’s pulled out of the Paris Climate Accord, withdrawn from the Iranian nuclear deal and twitter will possibly tell us he’s pulled out of something else by tomorrow.

The US built the multilateral system after World War II and is now rapidly withdrawing from it.

Clark reiterated that with the instability in the world like Brexit and the US move towards isolationist policies, like-minded nations such as those in the EU and NZ should work more closely than ever and that is why he is committed to getting this free-trade agreement over the line.

I thoroughly agreed and got him a beer to keep him enthusiastic about his mission.

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