New Zealand's Dairy Trade Challenges Persist Despite India FTA Efforts

The Dairy Companies Association of New Zealand (DCANZ) has voiced its dissatisfaction with the recent free trade agreement (FTA) negotiations between New Zealand and India, citing limited advancements in dairy trade liberalization. The current agreement includes only a few protein products and those exported to India for re-export, leaving major tariff issues unresolved.

DCANZ Chairman, Guy Roper, highlighted the efforts of New Zealand's trade officials and Trade Minister Todd McClay in reaching this agreement within a tight timeframe. However, he emphasized the need for a renewed strategy to tackle the significant trade challenges the dairy sector faces. This sector accounts for one-third of New Zealand's total goods exports, yet continues to encounter tariffs and trade distortions.

Over 85% of global dairy consumption remains subject to tariffs of 10% or more, which hampers New Zealand exporters. Moreover, the industry faces increasing challenges from subsidized dairy protein exports, such as those from Canada.

Roper noted that since 2021, dairy has contributed $8 billion to the $12.7 billion growth in primary sector exports, underscoring its importance to New Zealand's economy. He called for focused and innovative efforts to reduce trade barriers, which would allow the dairy sector to continue its substantial value growth.

DCANZ is eager to collaborate with the New Zealand Government to achieve the same level of trade liberalization for dairy as other sectors, aiming to meet the significant unmet demand for high-quality New Zealand dairy products in markets like India.