The United States government’s decision to remove its recently imposed tariffs on a range of food products, including New Zealand beef, has been welcomed by the red meat sector.
Beef + Lamb New Zealand chair Kate Acland said it appears the US has removed the additional 15% tariff on beef that was imposed across the board on the August 1.
“This means that our beef will go back to facing a tariff of less than 1% under our WTO country-specific tariff rate quota and will restore a level-playing field with our key competitors,” she said.
Acland said she hoped the US would consider taking a similar approach with New Zealand lamb, which continues to face the additional 15% tariff and has been experiencing similarly high prices.
Minister for Trade and Investment and Agriculture, Todd McClay, cautiously welcomed the news.
The removal of the tariffs affects beef, offal, prepared meat, kiwifruit, fresh fruit, berries and avocados – around 25% of NZ exports to the United States, worth $2.21 billion a year.
“The US remains an important trade partner for New Zealand and the decision to lift these tariffs is a step in the right direction and will be welcomed by exporters who have faced months of uncertainty and higher costs,” McClay said.
The move provides much-needed stability for farmers and processors, saving them around $330 million in additional tariff duty, he said.
Meat Industry Association chair Nathan Guy said it will be a boost for NZ exporters sending their product into their largest market. It reduces the uncertainty they have been experiencing in the past few months.
“Since these additional tariffs were imposed, volumes of New Zealand’s beef and lamb to the US have decreased compared to last year, despite strong demand and firm prices. Since April, New Zealand beef imports into the US have incurred tariffs costs of over NZ$300million.
“Clearly the tariffs have been having an impact on US food inflation, so this is a sensible move to alleviate the pressure on US consumers.
“With US production at 70-year lows and consumption at record levels, the US needs our high-quality red meat.”
— FARMERS WEEKLY