Environmental Groups Allege Breach of Free Trade Agreement by New Zealand Government
Source: The DairyNews
A coalition of prominent environmental organizations, including the World Wildlife Fund (WWF), Environmental Defence Society (EDS), Greenpeace, Forest and Bird, and Pure Advantage, has raised concerns that the New Zealand government's recent actions breach its free trade agreement (FTA) with the United Kingdom.
In a joint submission to the Ministry for Foreign Affairs and Trade, the groups argue that the government's rollback of environmental laws constitutes a violation of the FTA's robust environmental chapter.
The FTA between New Zealand and the UK incorporates a clause explicitly prohibiting the encouragement of trade by weakening environmental laws. The environmental groups claim that the government's recent policy decisions, framed as a "war on nature," are geared towards providing New Zealand exporters with a competitive advantage, thereby violating the terms of the agreement.
Trade Minister Todd McClay assured that the ministry would respond to the submission, emphasizing that New Zealand takes its trade agreement obligations seriously. He stated that the FTA allows both parties to set their own environmental laws.
WWF chief executive Kayla Kingdon-Bebb cautioned that weakening environmental protections could have adverse consequences for the industries the government aims to support. She pointed out that global markets and consumers increasingly demand sustainably produced products.
The joint submission by the environmental groups criticizes the government's repeal of key environmental Acts, replacement of evidence-based national policies, plans for fast-track developments with uncertain environmental safeguards, elimination of clean energy schemes, redirection of emissions reductions funding to tax cuts, and increased ocean exploitation.
The submission contends that the government's agenda to streamline regulations for industry and the primary sector aims to enhance New Zealand's export competitiveness at the expense of the climate and the environment, effectively creating an implicit subsidy for New Zealand exports.
While the UK government faces criticism from its own environmental groups for perceived backtracking on climate change, the WWF chief executive acknowledged that enforcing environmental clauses in the EU deal, which has even stronger climate provisions, might be challenging. Nevertheless, she suggested that the European Union could potentially wield influence when its deal with New Zealand is ratified this year. Lawyers and trade experts have previously indicated that enforcing environmental clauses in the EU deal would involve a rigorous mediation process before resulting in sanctions. The Ministry for Foreign Affairs and Trade retains the authority to advise other government entities on compliance with international deals.
The FTA between New Zealand and the UK incorporates a clause explicitly prohibiting the encouragement of trade by weakening environmental laws. The environmental groups claim that the government's recent policy decisions, framed as a "war on nature," are geared towards providing New Zealand exporters with a competitive advantage, thereby violating the terms of the agreement.
Trade Minister Todd McClay assured that the ministry would respond to the submission, emphasizing that New Zealand takes its trade agreement obligations seriously. He stated that the FTA allows both parties to set their own environmental laws.
WWF chief executive Kayla Kingdon-Bebb cautioned that weakening environmental protections could have adverse consequences for the industries the government aims to support. She pointed out that global markets and consumers increasingly demand sustainably produced products.
The joint submission by the environmental groups criticizes the government's repeal of key environmental Acts, replacement of evidence-based national policies, plans for fast-track developments with uncertain environmental safeguards, elimination of clean energy schemes, redirection of emissions reductions funding to tax cuts, and increased ocean exploitation.
The submission contends that the government's agenda to streamline regulations for industry and the primary sector aims to enhance New Zealand's export competitiveness at the expense of the climate and the environment, effectively creating an implicit subsidy for New Zealand exports.
While the UK government faces criticism from its own environmental groups for perceived backtracking on climate change, the WWF chief executive acknowledged that enforcing environmental clauses in the EU deal, which has even stronger climate provisions, might be challenging. Nevertheless, she suggested that the European Union could potentially wield influence when its deal with New Zealand is ratified this year. Lawyers and trade experts have previously indicated that enforcing environmental clauses in the EU deal would involve a rigorous mediation process before resulting in sanctions. The Ministry for Foreign Affairs and Trade retains the authority to advise other government entities on compliance with international deals.
