If Donald Trump is re-elected United States president, new trade barriers could soon follow, a panel of experts warned this week.
A Trump administration is considered sympathetic to lobbying from industry groups, and the spectre of the US sheep industry renewing efforts to impose obstacles to New Zealand sheep meat exports was considered a real possibility at the Red Meat Sector Conference in Wellington.
Two years ago US sheep farmers tried unsuccessfully to get their government to do just that, claiming NZ exports were depressing domestic prices.
Sarah Salmond, a partner and trade specialist at law firm MinterEllisonRuddWatts, said such requests could be viewed more favourably by a Trump-led administration.
Stephen Jacobi, the executive director of the NZ International Business Forum, agreed.
“We are in for a rough ride, I feel.”
They both suggested the sector respond by building relationships with US sheep farmers to promote the benefits of consumers having access to sheepmeat.
The conference was told that 70% of New Zealand exports are covered by free trade agreements but the emergence of non-tariff barriers is providing new obstacles for exporters.
Jacobi told the conference that signing an FTA does not mean access will not be blocked by other regulations or requirements.
Salmond warned red tape creep can be a greater barrier to accessing markets than tariffs.
“An FTA is a discounted ticket to a dance, to get you in the door, but you still have to buy your own drinks and find your way onto the dance floor.”
The panel of trade experts gave the example of the European Union’s new deforestation regulation as a non-tariff barrier.
From December 30 businesses trading with the EU must prove that products, including beef, leather and wood, do not originate from deforested areas or contribute to forest degradation.
Salmond said NZ can comply at a macro level but the challenge is that EU officials want data proving compliance at a micro level, proof products did not come from harvested areas that will not be replanted.
She said such policy is in response to consumers wanting to know where and how their food was produced and that it does not negatively impact animal welfare, the environment or add to climate change.
Meat Industry Association chief executive Sirma Karapeeva said dealing with such non-tariff barriers requires a NZ Inc response.
Jacobi said the Ministry for Foreign Affairs and Trade and Ministry for Primary Industries has in the past year negotiated the removal of 14 non-tariff barriers on $1.1billion of exports.
He said exporters need to alert government officials when they encounter these barriers.
