Background

Free Trade Agreement negotiations between New Zealand and the European Union (EU-NZ FTA) have resulted in new Tariff Rate Quotas (TRQs) for beef and sheepmeat and goatmeat providing preferential access at 7.5% for beef and 0% for sheepmeat.

The EU-NZ FTA agreement requires ratification by the respective EU and NZ Parliaments, and subject to the EU's ongoing ratification process, the FTA is anticipated to enter into force (EIF) in early 2024. NZMB’s preparedness planning provides for quota administration processes to be ready for implementation prior to this date. 

The EU-NZ FTA further liberalises the EU beef, and sheepmeat and goatmeat markets.

For beef access, the quota bears a tariff of 7.5% (except in the case of tallow) and commences at 3,333 tonnes on entry into force, increasing year on year in equal steps up to 10,000 tonnes in the 7th and subsequent years. The TRQ is designated in carcass weight equivalent (c.w.e.) and so a multiplier (coefficient) needs to be applied to boneless products.

The new EU FTA sheepmeat and goatmeat quota provides for additional HS 0204 access as well as products in the HS 0206, 0210 and 1602 categories and is also designated in carcass weight equivalent (c.w.e.).

The Meat Board Act 2004 (MBA) requires the NZMB (New Zealand Meat Board) to operate an allocation mechanism system for these quotas including provisioning for new entrants. 

Preparedness planning and industry consultation outcomes

NZMB consulted on proposals for quota allocation mechanism(s) and cost recovery relative to its EU-NZ Free Trade Agreement (FTA) preparedness planning.

EU and NZ Parliamentary processes are ongoing to legally implement the outcomes of the EU-NZ FTA, however it is anticipated these processes will be concluded in time for an anticipated entry into force in mid-2024.  This EU-NZ FTA preparedness programme of work is to enable NZMB to stand up quota management systems for access by NZ exporters once legal processes are completed – by early 2024.

Consultation material circulated in July 2023 outlined proposals for:

  • Quota Allocation Mechanism for beef access under the new EU-NZ FTA access;
  • Quota Allocation Mechanism for sheepmeat and goatmeat access under the new EU-NZ FTA access; and
  • Cost recovery fee proposals for the new EU-NZ FTA quotas.

This consultation period has closed and feedback considered. Decisions agreed by the NZMB Board are summarised here.   

If you wish to clarify or discuss matters, please contact us on info@nzmeatboard.org

26 October 2023