The Dairy Companies Association is welcoming the Trade Agenda 2030, released by Prime Minister Bill English earlier today.
“We are pleased to see the Government’s ongoing commitment to levelling the playing field and creating market options for New Zealand dairy exporters, who have contributed approximately $14 billion of export revenue to our economy in 2016,” says DCANZ Executive Director Kimberly Crewther. “Successful implementation of this Trade Agenda will deliver substantial economic benefits for New Zealanders.”
NZIER’s recent report Dairy trade’s economic contribution to New Zealand indicated that:
- Dairy trade liberalisation to date has boosted dairy export returns by $2.3 billion, adding $1.7 billion of GDP;
- New Zealand’s export focused dairy industry provides 40,000 jobs, including one in every five jobs in the Waimate, Otorohonga and Southland districts, and one in every ten jobs in the Matamata Piako, South Taranaki, Hauraki, Waipa, Ashburton, South Waikato, Clutha and Kaipara districts;
- Elimination of remaining dairy tariffs would add $1.3 billion to the value of current New Zealand dairy exports;
- Non-tariff barriers to trade are adding over $3 billion in costs to New Zealand dairy exports in the APEC region alone; and
- Reducing subsidy distortions in global dairy markets has the potential to significantly lift returns from international dairy markets.
“Removing trade barriers will secure the true value of New Zealand’s dairy product exports. As a result, the dairy sector will be better positioned to invest in sustainability and add value”.
“This requires more high quality FTA outcomes, greater momentum in subsidy reform, and ongoing engagement to maintain and use the trade rules frameworks.”
“It’s good to see Trade Agenda 2030 giving priority to these actions and we welcome the Government’s commitment to investing in more trade resourcing and capability,” says Ms Crewther.