A golden era of free trade is over as countries take more nationalistic approach while setting up greater regulatory hurdles, according to a London based trade expert.

David Henig, a director for the United Kingdom Trade Policy Project, European Centre for International Political Economy, said since Chinese economic growth has slowed, no country has come forward to replace it.

India had been seen as an obvious candidate, but Henig said access is complex and the regulatory hurdles high.

“Every country is trying to get in there but the trouble is there are multiple reasons why it is a difficult nut to crack.”

As the growth of international trade has slowed, Henig said, the regulatory requirements imposed by countries have expanded and much of that is being driven by the European Union.

“There is a sense the EU is the dominant regulatory player, it sets the pace and everyone falls in behind it because that is the standard that has to be met.”

Henig has been involved in the EU-United States Trans-Atlantic Trade and Investment partnership and helped formulate UK trade policy following the 2016 Brexit referendum.

He said the “low-hanging fruit” of free trade agreements have mostly been plucked, which coincides with countries becoming more nationalistic.

“The countries that are doing them are at an end but populations are more suspicious as they haven’t necessarily lived up to what they [FTAs] promise.”

Future trade agreements are likely to be small trade deals or deals that cover multiple issues other than trade access.

Few of these deals are being negotiated. 

Politically, announcing free trade agreements is much more popular than announcing the lowering of trade-disrupting regulations, which would be of significant benefit to exporting companies.

The increased volume of regulations around food production is despite little apparent thought about wider implications and how they squeeze out smaller exporters and producers.

Henig said large food-producing companies rather than small players have the scale and ability to meet those regulations while also satisfying retailer requirement for year-round supply.

Food-exporting countries like New Zealand, Henig said, need to stay ahead of the regulatory environment.

“It’s not about quality of product but the way its produced, such as the impact of climate change and adhering to the sustainability agenda.”

He said there is plenty of pressure from groups seeking government regulations on food production to address concerns about sustainability, environment and animal health.

“The net result is that regulations are expanding and we end up with a huge burden to meet.”

The widely questioned EU deforestation policy – a blanket requirement for producers of products such as beef to prove production did not result in deforestation – is an example of policy advocated by interest groups but for which there are significant unintended and wide-ranging consequences.

Henig said this regulatory growth is an untold story but could start to level off due to the complexity it has created.

“They may be able to justify it individually, but cumulatively it makes it virtually impossible for the smaller guys.” 

He would not be surprised if food producers were one day be required to provide consumers with guidance on packaging about the degree of sustainability of the production system, such as traffic lights.

Henig also thinks producers will have to provide verification about claims such as “pasture raised”.

The increasing regulatory process means countries are focused on protecting access to markets for their premier products by ensuring they adhere to those regulations, in the UK’s case exports of Scotch whisky, which are worth NZ$15 billion a year.

More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.  Read more about his findings here.

The Environmental Protection Authority board has had a refresh with four new appointments announced by Environment Minister Penny Simmonds.

The new board members are Barry O’Neil, Jennifer Scoular, Alison Stewart and Nancy Tuaine, who have been appointed for a three-year term ending in August 2027.

“They bring a wealth of experience in the horticultural and agricultural science fields, as well as sound governance experience,” Simmonds said.

Paul Connell, who has served as a board member since August 2021, has been reappointed as both a board member and as acting interim chair, following chair Colin Dawson’s term ending.

Simmonds will make one further appointment later this month.

The EPA is New Zealand’s national environmental regulator, playing a vital role across the entire economy.

“It’s critical to have timely decision making for the agriculture and horticulture sector, alongside ensuring positive environmental outcomes. EPA decisions impact the daily lives of all New Zealanders,”  Simmonds said.

“I would like to thank the outgoing board members, including past chairman, Colin Dawson, and board members, Tīpene Wilson, Andrea Byrom and Heather Simpson. I would especially like to acknowledge the various contributions Tīpene Wilson has made over the past 20 years.”

The Southland farm community is facing uncertainty with unclear messaging from Environment Southland on nutrient limits, targets and timelines for freshwater rules, says farmer and council deputy chair Jeremy McPhail. 

At an Environment Southland public strategy and policy committee meeting held last week, the council confirmed nutrient limits will form part of the 2027 plan change but “what these will look like is yet to be determined”.  

McPhail voted no to a 2025 plan change, expressing frustration about the process and the lack of information the council is providing to the community in regards to setting nutrient limits and targets.

Councillors reached a number of resolutions at the meeting. 

Changes to the Southland Water and Land Plan and Regional Policy Statement, giving full effect to the National Policy Statement for Freshwater Management, will be notified by the end of 2027, and earlier if practicable.

The council also confirmed messaging around freshwater reforms.

The council will be working with communities over the next two years to develop catchment plans that detail the actions the community wishes to take to improve freshwater.

“Those responsible for the greatest environmental impact will need to make a greater contribution,” an Environment Southland spokesperson said. 

“Limits will form part of the 2027 plan change but what these will look like is yet to be determined.  A reference period will be used in the future, and we encourage landowners to record information from the last 10 years (for example, a reference period of July 2014 to June 2019) on land use area and type, stock types and numbers, fertiliser use, and actions adopted on farm.”

The council directed staff to continue scoping a plan change to the proposed Southland Water and Land Plan and Regional Policy Statement to set long-term goals, address minor issues and enable improved environmental practice for notification in the first half of 2025.

Earlier this month the council said in a press release that, despite the government announcing a pause to the rollout of the national farm plan system, in Southland implementing farm plans is underway as they form a key part of the Southland Water and Land Plan.

Environment Southland chair Nicol Horrell said while there’s some detail still to be worked through around timing, farmers should start pulling together the information for farm plans.

As part of the 2025 plan change, Environment Southland will be updating the farming rules in the Southland Water and Land Plan to provide an option of using a farm plan as a potential alternative to some consenting requirements.

Trade barriers affecting nearly $190 million of exports have been removed by the government over the past year.

Minister for Trade and Agriculture Todd McClay said they had resolved 14 non-tariff barriers (NTBs) over that period, returning significant value to Kiwi exporters. 

“These efforts directly boost our trade value and make it easier for businesses to expand into key international markets.”

The also support the government’s target of doubling exports by value in 10 years, he said.

NTBs, which include regulatory obstacles like complex certification processes and import restrictions, currently affect $9.8 billion worth of New Zealand’s trade, with the primary sector facing the greatest impact.

“Boosting the export value of farming, forestry, horticulture and wine production [is] vital to our economy, as we oppose distortionary agricultural subsidies through the WTO to enhance global food security.” 

The NTBs resolved include: 

• A barrier that had affected $5m in trade devices exports to Mexico.

• Labelling issues in South Korea that cleared a shipment of New Zealand cheese worth $1.8m.

• Reduced regulatory burdens for wine and spirits exporters, including expanded labelling flexibility, with the European Union. 

• Restored onion exports to Indonesia, NZ’s largest onion market, through streamlined phytosanitary certification.

• Restored log exports to India following changes to NZ’s fumigation practices.

“New Zealand exported $96.3 billion worth of goods and services in 2023. Over the next 12 months we will continue our focus on reducing NTBs including around costly EU deforestation regulations, Canadian dairy import restrictions, $300m of cosmetics exports to China and restrictions on structural timber exports to Australia,” he said.

In Focus Podcast | A new strategy for advocacy

AGMARDT and KPMG have released a report that offers a new way of organising our advocacy networks. Common Ground assesses the positives and negatives of the advocacy groups we have now and sets out a strategy that could improve the collaboration and messaging emanating from the farming world. AGMARDT general manager Lee-Ann Marsh joins Bryan to discuss the report.

Federated Farmers says regional councils are continuing to plough ahead with changes to freshwater rules and the Government needs to take urgent action to pull them into line. 

“It’s completely outrageous what’s going on with these regional councils,” says Colin Hurst, Federated Farmers vice-president and spokesperson for freshwater.

“We’ve got a situation where a number of councils around the country are deliberately choosing to ignore the direction of central Government and push ahead with plan changes. 

“These councils don’t seem to care in the slightest that Ministers have said the national rules are changing, or that they’ll be needlessly wasting ratepayers’ money.”

Otago Regional Council (ORC) has recently faced intense media and political scrutiny for its continued insistence on pushing through expensive new freshwater rules in October.

Environment Canterbury (ECan) has recently started a 10-day consultation on a plan change that will incorporate new rules for winter grazing and dairy land use into its regional plan. 

Environment Southland (ES) is also planning to notify a new regional plan in the coming months that will introduce onerous new freshwater rules for farmers.  

“The situation has now become so dire that we’re calling on central Government to take drastic measures and intervene,” Hurst says. 

“This is serious stuff that could completely reshape our farming landscapes and rural communities, in spite of a new national direction coming for freshwater management.” 

This week Federated Farmers has formally written to Environment Minister Penny Simmonds urging her to intervene.  

The letter calls on the Government to take urgent legislative action to prevent regional councils from notifying these plan changes until a new national direction is in place. 

“We’re asking the Government to put a ‘pause’ in place while it establishes a new framework to replace the Resource Management Act (RMA),” Hurst says. 

“The Government has been very clear it will be setting a new national direction for how freshwater should be managed by councils and rewriting resource management laws.

“By continuing to move forward with these plan changes, regional councils are essentially giving central Government the middle finger and actively undermining that work.” 

ECan intends to push go on new regulations before the National Environment Standards expire on 31 December, which Hurst says is overriding the Government’s repeal of those regulations. 

Several other regional councils have also signalled their intent to push through plan changes in the first half of 2025. 

“The sheer arrogance of these regional councils needlessly pushing ahead with these plan changes is completely unbelievable,” Hurst says.

“By turning a deaf ear and blindly changing ahead, all they’re going to end up doing is wasting time and money, and completely eroding what little trust may remain with their ratepayers.”  

Federated Farmers is concerned that councils passing new freshwater plans and regional policy statements risk locking in the previous Government’s unobtainable freshwater bottom lines and Te Mana o Te Wai requirements. 

With the RMA set to be repealed, there’s also a very real prospect that ratepayer money will be wasted developing rules that councils will need to change almost immediately, Hurst says. 

“These regional councils have made it very clear that they’re hell-bent on notifying these plan changes and won’t stop unless they’re forced to.

“This means, unless the Government intervenes, the likes of Canterbury, Otago, and Southland will ram through new rules before the national direction is reviewed.

“In practical terms, this would essentially mean that despite the Labour Government being voted out of office, its National Policy Statement for Freshwater Management 2020 will be locked in.” 

Hurst says that would be a bitter pill for farmers to swallow.

“If that were to happen, all of the new Government’s efforts to make freshwater regulations more practical, affordable or workable will make absolutely no difference behind the farm gate.

“The most frustrating thing about all of this is that farmers are really committed to improving freshwater outcomes and want to do the right thing.

“We just need an enabling regulatory framework that allows us to make those improvements in a way that doesn’t stop us from farming altogether.” 

Federated Farmers has invited Minister Simmonds to discuss the matter further.

Federated Farmers, New Zealand’s leading independent rural advocacy organisation, has established a news and insights partnership with AgriHQ, the country’s leading rural publisher, to give the farmers of New Zealand a more informed, united and stronger voice. Federated Farmers news and commentary appears each week in its own section of the Farmers Weekly print edition and online.

A petition has been launched to stop imports entering New Zealand from countries that allow farming practices that would be illegal in this country.

The petition, by animal law expert and University of Auckland Associate Professor Marcelo Rodriguez Ferrere and supported by Animal Policy International, was launched at an event at Parliament.

It urges the government to enact legislation ensuring all imports meet New Zealand’s domestic animal welfare standards.

“In my view, allowing imported animal products with lower standards than NZ undermines the spirit and effectiveness of our laws and our commitment to animal welfare, and creates an unfair double standard that privileges overseas producers over domestic farmers,” Ferrere said.

Animal Policy International investigated egg farms in India earlier this year, filming hens confined in battery cages, raising concerns about these eggs or egg products imported into the New Zealand market at a time when NZ and India discuss the potential for a bilateral trade agreement.

The footage showed overcrowded conditions with up to 10 hens crammed into cages typically used for 2-3 birds, hens with injuries, swollen glands and beaks, dead birds left lying around the cages and insufficient and poorly maintained water access points.

Battery cages have been banned in NZ since 2023 due to animal welfare concerns.

Animal Policy International co-executive director Rainer Kravets said after he witnessed the conditions in India for himself, he was sure New Zealanders would be horrified at what those hens endured.

“New Zealanders have made it clear that they don’t support cruel farming practices like battery cages. Allowing cruel imports produced under conditions we’ve banned here undermines our values and undercuts our farmers. It’s time to close this loophole and ensure all products in our market meet our ethical standards.” 

New Zealand imports a large number of products produced under conditions that are illegal domestically, such as the use of battery cages for egg-laying hens, sow stalls for pregnant pigs, and the mulesing of sheep.

This was highlighted in a report released in March, Closing the Welfare Gap: Why New Zealand must apply its animal protection standards to imports.

NZ Pork chief executive Brent Kleiss backed the report’s findings, saying they align with what the organisation has been advocating for some time.

“We import pork from 22 countries and those countries – they are providing pork that’s been raised to lower standards of care than what we expect of our own producers,” he said at the time.

After being disappointed by New Zealand’s trade agreement with South Korea nearly a decade ago, the dairy and deer velvet industries are hoping for better treatment second time around.

Prime Minister Christopher Luxon and his South Korean opposite number Yoon Suk Yeol recently announced the two countries would explore upgrading the 2015 agreement although did not set out a timeframe for doing so.

“I look forward to continued growth in our trade relationship and was pleased to announce that we will explore the possibility of an upgrade to our bilateral free trade agreement,” Luxon said.

Five years of often testy negotiations concluded with an agreement in November 2014, entering into force a year later after being ratified by Korean lawmakers in December 2015.

Kiwifruit had been the major winner with tariffs of 40% eliminated in six years, compared to the nine years major rival Chile had achieved in its 2003 deal with the Koreans.

Beef exporters were also reasonably content, achieving the same 15-year phasing-out of tariffs as Korea’s deals with competitors in the European Union, Canada, Australia and the United States.

The same could not be said for the dairy industry.

While hefty tariffs on butter, cheese and infant formula were to be phased out over a respectable 15 years, the Koreans were harder to budge on NZ’s key milk powder exports.

The Koreans conceded an initial tariff-free quota of a mere 1500 tonnes per year, equivalent then to three days’ production at Fonterra’s Edendale factory. This was to rise by a paltry 3% each year to a maximum of 1957t after 10 years.  For all other milk powder exports the existing tariff of 176% was to remain.

But in 2015 hopes were high South Korea’s imminent application to join the TransPacific Partnership (TPP) would allow NZ to use its leverage as a foundation member of the 11-country trade agreement to gain more than the Koreans had been willing to give up in bilateral negotiations.

Fonterra’s director of global stakeholders affairs Simon Tucker said the withdrawal of the United States from the TPP by Donald Trump on his first day as United States president in 2017 dashed those hopes.

“When the US pulled out there was a bunch of those that had been around the table and those who were candidate countries who reassessed [joining].”

Tucker said the dairy industry welcomed the agreement being re-examined.

He said NZ exporters had been disadvantaged by not having the same market access as European and US rivals had achieved through their countries’ own trade deals.

“The Europeans are the biggest dairy exporters and the US and NZ are second and third.

“We all have market access deals into Korea so it is a pretty competitive market and obviously we would like to have the best possible access and where it is not as good as what our US and European competitors [have] we would like at least equivalent so we could compete on a level playing field.”

Deer Industry NZ chief executive Rhys Griffiths said when negotiations concluded the deer velvet industry had been disappointed at the outcome for tariffs for its single largest market.

While tariffs had been reduced on dried velvet, the 20% tariff on unprocessed velvet was left untouched.

At the time unprocessed velvet made up 75% of NZ’s velvet exports to Korea.

However Griffiths said the gradual reduction in tariffs on dried velvet coincided with a sharp increase in demand from Korean contemporary health food companies for the product.

Velvet exports to Korea had since increased from $20 million to $40m, with much of that growth in exports of the dried variety.

“It came just as we were beginning to engage with these healthy food companies that preferred the velvet dried in NZ just because of our regulatory system.

“Of course we said we were disappointed that we did not get unfettered market access but in reality having that outcome put us in a very good position to add more value here.”

Griffiths said the agreement as it stood took 15 years for tariffs to be fully phased out for dried velvet.

“It would be really helpful if we got that rate of [tariff] decrease increased or got free access as soon as possible and for consumers over there too.”

In Focus Podcast | Meeting the market in the US and EU

Roving reporter Neal Wallace calls in from Brussels to share insights on the first week of his Meeting the Market tour. He’s been in the United States where some of our biggest customers are, including Mars and McDonald’s. Neal says they love NZ food but there are a couple of things we need to improve if we’re to remain as a supplier of first-choice.

HortNZ is urging the government to incorporate the horticulture sector into its second Emissions Reduction Plan.

The current plan, outlining actions to reduce emissions between 2026 and 2030, makes no mention of horticulture, fruits or vegetables.

“It is concerning that the Emissions Reduction Plan (ERP2) overlooks horticulture entirely,” said acting HortNZ chief executive Michelle Sands.

“The sector is crucial for meeting emissions reduction targets, and supporting land-use change to horticulture is one of the many solutions New Zealand should be leveraging.”

Sands said horticulture is already a low-emissions land use that provides food for New Zealanders and the global market, contributing $7.48 billion in value across domestic and export markets. 

“This is achieved on less than 0.1% of New Zealand’s land area while accounting for only 1.1% of the country’s greenhouse gas emissions.

“To ensure a low-risk pathway to net-zero, the government should develop a diverse portfolio of emissions reduction policies, rather than relying heavily on a few uncertain technological advances.”

The Climate Change Commission has included 14,000 hectares of land use to horticulture in its demonstration path to meet the second emissions budget.

HortNZ wants ERP2 to include clear policy direction supporting this transition. This should involve recognising diversification into horticulture as a key policy and elevating “enabling the supply of fresh fruits and vegetables” to a matter of national importance under the Resource Management Act and its replacement legislation.

ERP2 should also include the policy aim to establish a national framework for commercial vegetable production to address the challenges posed by unworkable regional regulations.

With the Government Investment in Decarbonising Industry Fund officially disestablished under ERP2, HortNZ is also calling for the creation of a new fund to reinvest Emissions Trading Scheme proceeds into greenhouse decarbonisation.

“There is an urgent need for policy mechanisms that facilitate horticultural expansion as a strategy for low-emissions food production, and that provide resources for the sector to further decarbonise,” said Sands.

“HortNZ urges the government to commit to doubling the horticulture sector’s value by 2035 as part of its emissions reduction strategy, aligning with the goals of the Aotearoa Horticulture Action Plan, a strategy co-owned by government, industry, science and Māori.”

The government is committing $300,000 to a Women in Horticulture initiative aimed at supporting career progression.

Associate Minister for Agriculture and Minister for Women Nicola Grigg said the initiative is about empowering women in the horticulture industry with funding that will support networking and career progression.

“Women currently make up around half of the horticulture workforce, but only 20% of leadership roles, which is why initiatives like this are so important, Grigg said.

The Women in Horticulture initiative will deliver workshops and professional development sessions enabling women to upskill and reach their full potential.

“It also provides the sector an opportunity to positively influence industry attitudes by looking for ways we can encourage women to remain in and be recognised within horticulture.” 

Grigg said women are affected by the gender pay gap and disproportionate retirement earnings compared to men. 

“The government has committed $300,000 over three years to the Women in Horticulture initiative to making NZ a world leader for gender equity in this space. 

“Our government is focused on growing the economy and supporting our primary industries so that Kiwis can get ahead.

“As Minister for Women I want women to succeed, and this programme will support this objective.” 

When newly re-elected European Commission President Ursula von der Leyen acknowledged agriculture as a strategic asset, it piqued the interest of the community’s seven million farmers.

Patrick Pagani, deputy secretary-general of farm lobby group Copa Cogeca, said the recognition was in contrast to how European farmers felt they were previously treated.

“There has been a lack of farmer engagement but also a lack of recognition of the important role of farming in Europe,” he told Farmers Weekly at his Brussels office.

Earlier this year farmers took to the streets in 20 of the European Union’s 27 member states, protesting local and international issues such as a flood of Ukrainian food exports, a lack of response to drought and farmer returns being squeezed by processors and retailers.

Pagani said this reflected a top-down approach from Brussels bureaucrats who imposed targets on the sector and treated them as a problem.

He was therefore heartened at the noticeable change when in July Von der Leyen referred to agriculture as a strategic asset in her speech setting the scene for the next four years.

It is a comment not made in recent years.

“It means they consider farming and food as a priority and action will follow,” said Pagani.

He hopes it will encourage engagement with the sector and an end to impractical policies.

“We are happy to see this top-down approach abandoned and move to transitioning with the sector.”

Copa Cogeca represents 64 farming and co-operative members from the EU’s member states and is the largest such body in Europe.

It has 50 staff in its Brussels office.

Pagani said the challenges facing the sector are real.

The average income earned by 60% of Europe’s farmers is lower than other sectors and 30% of farmers will retire in the next decade.

Since 2005, 3 million farms have disappeared under urban sprawl or amalgamation.

The EU has a target of a 55% reduction in carbon emissions, compared to 1990 levels, by 2030, a 90% reduction by 2040 and carbon neutrality by 2050.

In 2020 EU agrifood systems contributed 31% of Europe’s greenhouse gas emissions.

During her campaign, Von der Leyen spoke of ensuring farmers can work their land without excessive bureaucracy while rewarding those who work with nature and preserve biodiversity and natural ecosystems while helping to decarbonise the economy.

She has commissioned a Strategic Dialogue on Agriculture, a vision for farming and food production that will be released shortly.

“This is important because it is a process that has never happened,” said Pagani.

While the commission’s approach to agriculture appears to have changed, he said that intent needs to be turned into action.

“We are only asking to have put back the competitiveness and economics of the sector, a transition that includes the three pillars: economic, social and environmental.”

The EU Green Deal, a policy adopted in 2022, aims to transform the bloc into a modern, resource-efficient and competitive economy.

For agriculture, it aims to enhance food security, reduce the environmental and climate footprint of food and make food systems more resilient and sustainable through an aligned Farm to Fork strategy.

A report from Wageningen University warns livestock numbers could fall 10-15% in order to meet nutrient loss targets, while feed costs are likely to rise.

The policy will also lower the use of pesticides and antimicrobials, impacting crop yields.

Soil is one of the policy’s target area with an estimated 60% classified as unhealthy and 83% containing pest residues.

By 2050 data will be collected on the health of soils and made available to farmers and other soil managers to improve its management.

The Farm to Fork strategy seeks to balance environmental impacts, mitigate and adapt to climate change, and reverse the loss of biodiversity while ensuring food security and access to nutritious and safe food.

Pagani said the current NZ$690 billion Common Agricultural Policy expires in 2027 and his organisation will seek to negotiate a new policy that includes financial support, trade, plant protection, bioactive controls and fair trade protection for farmers selling products.

Other challenges being pursued by Copa Cogeca include flexibility in meeting the 2050 net carbon zero target, imported products having equal production standards to those produced locally, and shortening the six to seven years it takes to release a product developed with new genomic techniques.

More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.  Read more about his findings here.