Many farmers and meat processors are welcoming the conclusion of the Comprehensive and Progressive Agreement (CPTPP) negotiations in Tokyo.
Sam McIvor, CEO of Beef + Lamb NZ, joins Rural Exchange to speak on how the new agreement will affect the sheep and beef sector.
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“Opening up markets, removing tariffs and barriers is always good for us,” he said. “And that flows on to those 80,000 employees in the sector.”
Mr McIvor explains that the CPTPP marks a positive change for New Zealand’s trade with three countries in particular: Peru, Mexico and Japan.
“By far the most critical of those is Japan, which is a $300 million market for us,” he said.
New Zealand exported meat has faced an uphill battle in Japan ever since Australia signed a free trade agreement with Japan in 2015.
“Since that time [Australia’s] exports of beef into Japan have grown by $1 billion,” said Mr McIvor. “Ours at the same time have dropped by 53 million.”
“That’s a major hurdle you got to get over,” he told RadioLIVE.
Luckily, the CPTPP evens the playing field for New Zealand exports. The new CPTPP is expected to be signed by all 11 participating countries in March this year