Background

Free Trade Agreement negotiations between New Zealand and the United Kingdom (UK-NZ FTA) have resulted in new Tariff Rate Quotas (TRQs) for beef and sheepmeat providing preferential access at 0% into the UK. The UK-NZ FTA agreement requires ratification by the respective UK and NZ Parliaments, and subject to concluding these domestic legal processes, entry into force (EIF) is anticipated for 1 January 2023. NZMB’s preparedness planning provides for quota administration processes to be ready for implementation prior to this date. 

The NZ-UK FTA liberalises the UK beef and sheepmeat markets. For beef access, 12,000 tonnes p.w. is provided, rising by 2,980 tonnes per year at a preferential tariff of 0% until the eleventh year at which time there is unrestricted access, subject to safeguards, until year 16. For sheepmeat, additional free access of 35,000 tonnes (carcase weight equivalent) is allowed until the fifth year in which it rises to 50,000 tonnes (c.w.e.) and becomes fully liberalised after fifteen years. 

The Meat Board Act 2004 (MBA) requires the NZMB (New Zealand Meat Board) to operate an allocation mechanism system. 

Preparedness planning and industry consultation

NZMB is consulting on proposals for quota allocation mechanism(s) and cost recovery relative to its UK-NZ Free Trade Agreement (FTA) preparedness planning. UK and NZ Parliamentary processes are ongoing to legally implement the outcomes of the UK-NZ FTA, however it is anticipated these processes will be concluded in time for an anticipated entry into force in early 2023.  This UK-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 – later this year.

Consultation material outlines proposals for:

  • Quota Allocation Mechanism for beef access under the new UK-NZ FTA access;
  • Proposal to mirror a similar quota allocation mechanism for sheepmeat – however it is noted access to this FTA quota will not be available to NZ exporters until a 90% utilisation threshold has been reached in the existing sheepmeat and goatmeat access available under World Trade Organisation (WTO) quota; and
  • Cost recovery fee proposals for the new UK-NZ FTA quotas.

The project timeline includes  all aspects of the readiness planning required to be undertaken to enable NZMB to be in a position to implement quota management systems for the new access agreed in the UK-NZ FTA, once domestic legal processes are concluded by UK and NZ Parliaments.

We welcome feedback on the proposals and a list of questions to consider is included for reference. If you wish to clarify or discuss matters in this consultation material, please contact us on info@nzmeatboard.org

This consultation period closes 3pm Thursday 21 July.

4 July 2022