In a new report on the UK’s trade agreement with New Zealand, the cross-party International Trade Committee raises concerns over the elimination of tariffs on New Zealand goods and the impact of opening UK agri-food markets to cheaper imports.
Available HERE, the 110-page report highlights that much of New Zealand’s beef, sheep-meat and dairy are cheaper than those produced in the UK due to lower production costs.
With the Government’s impact assessment predicting that the UK’s agriculture, forestry, fishing, and semi-processed food sectors could contract due to increased competition, the Committee questions whether the pros and cons of tariff liberalisation have been fully considered.
While concluding that, on balance, the agreement should be ratified, the Committee argues that it presents few new opportunities for UK exporters and suggests more export opportunities or greater safeguards for the sector could have been negotiated.
Committee Chairman, Angus MacNeil, said: “Throwing open UK agri-food markets to cheaper goods has caused understandable disquiet among producers. Our report reflects these concerns. The Government has forged ahead on a deal creating new challenges which may bring cheaper food for consumers, but also potentially threatens our nation’s food security during a cost of living crisis.”
The Government is, he went on, running the risk of locking the UK’s beef, sheep-meat and dairy producers into a contest they never sought without support or protection, with competitors able to place them at a serious disadvantage.
The Committee is concerned at the absence of a single, clear trade strategy and notes that the Government's approach to negotiating new agreements is reactive and hasty.
