New Zealand: Trump’s TPP axe a ‘significant blow’

Beef + Lamb chairman James Parsons said the US TPP exit is a 'major setback'

New Zealand Beef + Lamb chairman, James Parsons, has lamented US President Donald Trump’s withdrawal from the Trans Pacific Partnership (TPP), claiming the protectionist move will hurt exports.

Parsons said Trump’s controversial move was a “significant blow” that would create a “struggle” for beef and lamb farmers trying to carve out competition in Japan, one of 12 TPP members. The current draft of the TPP contract cannot be entered into force without America, meaning the deal may fall apart.

In the short term, this means New Zealand is likely to seek a bilateral free trade agreement (FTA) with Japan to level the playing field for its beef. This may be difficult, due to an existing Japan-Australia FTA which has seen Australian beef exports to Japan rise by 13%, while those from New Zealand have fallen by 11%.
 
Our competitiveness in that market, and our resulting market share, will continue to be affected for some time,” said Parsons in a sombre market update on Wednesday 25 January.

Free trade ‘allies’

While Donald Trump’s withdrawal from TPP is a blow to trade liberalisation and a “major setback” for New Zealand, Parson portrayed a sanguine disposition for the future of trade. He expects remaining TPP members – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico Peru, Singapore and Vietnam – to redraft the deal and show leadership in free trade.

The Regional Comprehensive Economic Partnership trade deal, which includes New Zealand, China, India Japan and other south-east Asian nations, is also under negotiation. This may offer an opportunity to establish common trading rules in the Asia-Pacific region.

Over the next two years, Beef + Lamb New Zealand directors Andrew Morrison and George Tatham will visit the US as part of earlier-arranged trips to meet producers. Parson said US beef farmers were New Zealand’s “allies” and hoped a mission to meet them would build mutual understanding for the importance of a free trade agreement.

Related News

US President Donald Trump has said he wants a 'quick' UK trade

US pork sector praises Trump after UK trade talk

The meat industry has expressed mixed opinions for a UK-US trade deal

US-UK trade deal could take place in two years

Ryan Zinke said he was 'humbled' to serve in Trump's administration. Image courtesy of Gage Skidmore

Ranchers: Trump’s Interior Sec pick is ‘great news’

New Zealand aims to target restaurant-goers in Shanghai

New Zealand’s ‘big win’ for exporters with chilled China meat deal

The need to reduce tail cutting was highlighted in the report

New Zealand: Animal welfare body airs ‘concerns’

As governor of Georgia, Sonny Perduegained experience of managing a big farm state

Perdue confirmed as US agriculture secretary

Cattlemen praised Trump's move to reform taxes, especially plans to repeal death duty

Trump’s biggest tax cut in US history thrills meat sector

The Trans-Pacific Partnership was ratified by New Zealand's government

New Zealand ratifies TPP deal despite US exit

Plans to improve animal welfare conditions are in the process, says the government

NZ: 1,000 animals unfit to travel slaughtered annually

Donald Trump ripped up the Trans-Pacific Partnership trade deal (Flickr/Gage Skidmore)

US meat industry wants Asia deal as Trump kills TPP

NCBA has asked for urgent action on the Trans-Pacific Partnership deal

US trade representative: TPP inaction ‘alarming’

Beef producers fear the impact volatility will have on the trading landscape

National Cattlemen’s Beef Association: Price volatility may hamper exports

US beef firms lost $140m in sales to Japan due to Australia's greater market access

TPP will toughen US beef industry and bolster trade with Japan

The NCBA: US beef is at an "economic disadvantage in Japan"

US cattle industry calls for vote on TPP

The IBA wants to see progress on the Trans Pacific Partnership

International Beef Alliance urges progress on TPP

Questions over Trump's foreign policy have yet to be answered

President Trump and the future of free trade

America is clawing back its share of Japan's beef market as Australia loses ground

US beef growing in Japan

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.