European Union ambassador to New Zealand Lawrence Meredith has played down suggestions that new legislation such as the Fast Track Approvals Bill could put NZ in breach of its free trade agreement with the bloc.
The NZ-EU FTA, which came into force on May 1, is thought to deliver new quota opportunities worth more than $600 million in annual export earnings. In March, Forest & Bird said the fast-track legislation would breach clauses in this agreement.
Speaking at the EU’s stand at Fieldays, Meredith said the FTA has ambitious levels around sustainable development and both parties are strongly committed to climate neutrality by 2050 but have different ideas in how to get there and the speed moved.
“We’re committed to 2050, I have got three boys and it’s really important that we have climate-friendly policies, but it’s also important that we do it in a sensitive way. I come from a dairy farming background, I do understand the challenges, and I think it’s really important that we listen to farmers and find the best way on delivering on those goals.”
The agreement states that both parties are committed to their international obligations under the Paris climate agreement and deliver on climate neutrality by 2050.
“As long as the commitment to that goal is maintained, we’re on track.”
He quashed speculation that agriculture will be included in the EU’s border carbon tax, the Carbon Border Adjustment Mechanism (CBAM).
This will apply a carbon levy to certain products in the cement, iron and steel, aluminium, fertilisers, hydrogen and electricity sectors when these products are imported into the EU.
The CBAM is still in its transitional phase until January 2026, before it enters its definitive phase where producers will be required to pay a levy on the direct and indirect emissions embedded in these products.
Meredith said it is designed to ensure that goods coming into the EU have a high level of environmental protection and there are no plans to extend it to agriculture.
In the several weeks since the FTA has come into force, Meredith and his colleagues have been out on the road promoting the agreement across the country, including spending time at Fieldays with farmers and sector leaders.
It had caused a lot of excitement in the horticulture sector and Meredith said he has had “good conversations” with Zespri and Horticulture NZ.
He acknowledged that the red meat and dairy sectors would have wanted more out of the deal, but both are taking advantage of the modest increases on the table.
“The priority now is to optimise those gains that are on the table.
“There’s big opportunities. Tariffs have come off kiwifruit, apples, onions and pears and that’s a big gain. MFAT and the NZ government estimates $100m straight from tariff reductions.
“It could even be more than that because I understand from conversations with Zespri that it’s a bumper crop and those estimates were based on last year’s more modest crop.”
When asked about how it had been received among EU countries, he said there are three areas that excite them: firstly, the green transition where there were big opportunities around green energy, aviation and shipping. Secondly in the tech industries – not just in agriculture but across the board; and thirdly in infrastructure and building materials.
“If the market is open, we’re open for business.”
Meredith said the agritech and innovation on display at Fieldays is what really excited him.
“We’re also keen to have a strong part in innovation.”
It was the ambassador’s first time at Fieldays and he said he was “super impressed” with the innovation on offer as well as NZ farmers’ resilience and agility.
“I want to come out and meet farmers. I’ve come to Hawke’s Bay in the onion and apple packing sheds and I’ll be very keen on going out to a farm,” he said.
