How might the EU-New Zealand trade deal impact the beef trade?

Published 2024년 4월 26일

Tridge summary

The EU-NZ Free Trade Agreement, set to take effect on May 1, 2024, is set to significantly boost New Zealand's access to the EU market, including a substantial increase in beef export quotas and a shift towards tariff-free trade. The agreement, which is expected to value at nearly 9.1 billion euros, marks a recovery for New Zealand beef exports, which have seen a decline over the past decade. In contrast, the UK-NZ FTA, already in effect, offers a gradual increase in beef export quotas over a decade, with a safeguard mechanism to prevent market oversaturation. This article highlights the economic implications of these FTAs, particularly in the beef industry, noting the price disparity in lamb production between New Zealand and the UK.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The EU-NZ Free Trade Agreement (FTA) will enter into force on 1 May 2024. Trade of goods between the two countries was worth almost 9.1 billion euros in 2022. The agreement provides improved access into the EU market for New Zealand products. Improved access for New Zealand goods includes: The current quota for New Zealand beef exports to the EU is 1,102 tonnes with a 20% tariff. New Zealand exporters could also access the Most Favoured Nation (MFN) global quota and compete for a total of 116,703 tonnes annually with a tariff at 20%. Any additional export outside of the two quotas would be subject to an out of quota tariff of 12.8% + €141.1 – 304.1 per 100kg. As agreed in the FTA the TRQ for New Zealand beef entering the EU will rise to 3,333 tonnes in the first year of the agreement and rise to 10,000 tonnes after year 7. There will also be a 7.5% tariff applied to those imports. It is worth noting that these allowances are only available for animals that have been raised under ...

Source: Ahdb