EU and New Zealand in negotiations

Over the last several months, New Zealand-EU negotiations have been pushed by both sides with huge energy, but rather below the public radar, the European Dairy Association (EDA) reports.

The cadence of New Zealand official delegations travelling to Brussels is reaching a peak in May and June 2022. A clear sign for both, is the phasing out of travel restrictions and the perceived decisive momentum in the trade negotiations.

In summer 2020, the EU Commission had tabled a first dairy market access offer and made an ‘amended’ offer in summer 2021, where some of the EDA’s key asks were at least taken into consideration.

The EU dairy sector invests heavily in its green transformation to fulfil Green Deal commitments, but faces unprecedented challenges at farming and processing level: studies show that the Green Deal policy on its own will increase the cost of milk production in the EU by more than 30% by 2030, and hence risks to undermine the international competitivity of European dairy.

In today’s geopolitical environment, the EU Commission seems ready to give in to major New Zealand requests for dairy market access to the union, especially on high added value products.

The French EU Presidency, which had a very reluctant approach to these trade negotiations, is coming to an end on 30 June, and hence the main New Zealand delegation visit to Europe seems to be scheduled for July 2022, EDA adds.

We have flagged up our serious concerns with political decision makers, stressing the fact that opening up our EU internal market for third country’s dairy now is simply irresponsible, the association notes.

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