Friday, 27 July 2018 - 10:48am

Beef + Lamb New Zealand and the Meat Industry Association strongly oppose the European Union (EU) and United Kingdom’s (UK) proposal to ‘split’ the EU’s World Trade Organisation (WTO) Tariff Rate Quotas between them.

The UK and EU have officially notified the WTO of their draft tariff schedules, which propose to split tariff rate quotas that allow access for New Zealand sheepmeat and beef exports.

B+LNZ Chief Executive Sam McIvor says the sector has been firm in its position since the UK Brexit referendum result came in.

"Our sector will not accept any proposal that erodes the quality and quantity of our WTO quotas.

"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."

The New Zealand sheep and beef industry is not seeking windfall gains from the Brexit process, he says.

"We are open to creative and mutually beneficial solutions that work for all parties involved and ensure the least amount of disruption to the market. But for that to happen, the EU and the UK must undertake genuine and constructive engagement with negotiating partners and stakeholders.

"At a time where the WTO and the global trade environment is under increasing pressure, it is essential that the EU and UK show leadership in protecting the system by acting with the transparency, fairness and good faith that underpins the WTO and the rules-based system."

MIA Chief Executive Tim Ritchie says the sector cannot accept the EU and UK’s ‘split’ proposal, which would mean New Zealand would lose the ability to adjust the destination of its exports in order to responsibly respond to the individual country market conditions across the current EU 28 membership.

"Markets are dynamic, domestic production and consumer demand continues to evolve, and it is important for market stability that New Zealand’s sheepmeat and beef exporters are able to factor that into their marketing plans.

"The ability to respond to market conditions and the resulting market stability is in the interests of both EU and UK producers and consumers. New Zealand has operated with this ability since the establishment of the WTO quotas and has proven its credentials as a responsible participant in the EU market.

"We are also absolutely confused by the timing of this proposal - given that the terms of the UK’s exit have yet to be negotiated between the UK and EU. Without clarity and details around the future trading relationship between the UK 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."

Beef + Lamb New Zealand and the Meat Industry Association have registered their absolute opposition to the EU’s proposal in person in Brussels, Geneva and London and through a joint written submission to the EU Commission. The organisations will continue to work with the New Zealand government to ensure the sector is no worse off as a result of the Brexit process.