New Zealand's early ratification of a free trade agreement (FTA) with the European Union (EU) is set to benefit onion growers with an additional $3 million in export revenue this season. The European Union FTA Legislation Amendment Bill, having received Royal Assent two weeks ago, ensures New Zealand's ratification of the deal with the world's largest trading bloc. Trade and Agriculture Minister Todd McClay highlighted the unanimous agreement among committee members to finalize the legislative process by the end of March, allowing the agreement to take effect from 1 May. This timing is crucial for the export of this year's kiwifruit and onion crops to the EU.
James Kuperus, Chief Executive of Onions NZ, acknowledged the significance of the EU as New Zealand's primary export market for onions, with an estimated 35,000 tonnes expected to be exported tariff-free post-1 May, resulting in approximately $3 million in savings from the early elimination of a 9.6% tariff. Kuperus also noted the exceptional quality of this season's onions, attributing it to favorable weather conditions during growth and harvest. With most of the 2024 crop already harvested and stored, the focus is on maintaining quality for exports to European and North Asian markets, with plans to commence exports to Indonesia. Despite challenges such as increasing costs and sea freight issues, the resilience of New Zealand's farmers has been evident.
Source: ruralnewsgroup.co.nz