Differences in EU and UK/New Zealand trade quotas
The UK National Farmers Union has flagged up the differences between the agreements reached between the European Union and New Zealand in a recent press release. In it, it notes that cheese tariffs to the UK from New Zealand will be eliminated after five years, with a year one quota of 24,000 tonnes, rising to 48,000 tonnes in year five, with unlimited volumes from year six onwards, with the quota being managed on a first come, first served basis.
Meanwhile, the EU’s quota is 25,000 tonnes with the in-quota duty of 0% being phased in over seven years, with the addition of an in-quota duty for 6,061 tonnes allocated under the EU’s WTO schedule going from €170.6 to zero for cheese for processing and whole cheddar cheeses between 33 and 44kg in size. This quota will be managed on the basis of an import licence.
Butter to the UK will be reduced to zero tariff after five years on a first come first served basis, and whey and SMP powders after year four, with liberalisation at entry into force for liquid products such as yogurt and liquid milk.
For New Zealand butter exports to the EU, a new FTA (free trade agreement) TRQ (tariff rate quota) of 15,000 tonnes will be phased in over seven years with a steadily reducing quota duty until year seven, where in-quota tariff will remain at 5%. In addition, 21,000 tonnes of the current WTO quota of 47,177 tonnes (with an in quota tariff of 38%) will be reduced to 5% of the MFN. Import licences will be managing the quotas.
For milk powders to the EU, an additional FTA TRQ of volumes increasing from 5,000 tonnes at EIF to 15,000 tonnes from year six and beyond, with an in-quata tariffs of 20% on the MFN rate. For dairy PAPs and high protein wheys, the TRQ will rise to 3,500 tonnes in volume in year six and beyond will be opened with a 0% in-quota tariff.