The Irish Cattle and Sheep Farmers’ Association (ICSA) has described a new trade deal between the EU and New Zealand as “another blow for sheep farmers”.
As part of the free trade agreement (FTA), signed yesterday (Sunday, July 9), the EU allows a tariff rate quota of 38,000t of sheepmeat to be imported from New Zealand duty free.
The measure will be gradually phased in over seven years from when the agreement enters into force.
This volume will be in addition to the current 114,000t of sheepmeat already permitted to enter the EU from New Zealand.
ICSA
ICSA Sheep Committee chair Sean McNamara has said the agreement comes at a time when prices for Irish sheep farmers are “falling rapidly”.
“This agreement can only be described as kicking sheep farmers when they are down.
“Our sheep farmers need better prices for their produce and greater financial supports, not agreements that will make an already bad situation worse,” he said.
“This is the last thing Irish sheep farmers need. It makes no sense to allow this additional product to come in when we know the negative impact it will have on local suppliers.
“It is a disgrace that instead of trying to help sheep farmers, decision makers within the EU have decided to not only ignore the difficulties facing the sector but to also compound those difficulties,” McNamara said.
The FTA aims to increase bilateral trade between the EU and New Zealand by 30% within a decade.
The deal will cut some €140 million a year in duties for EU companies sending goods to New Zealand from the first year of the agreement coming into force.
Brussels estimates that annual EU exports could grow by up to €4.5 billion, while EU investment into New Zealand has the potential to increase by up to 80%.
According to the EU, the deal creates new opportunities for European farmers and food producers, while taking into account the interests of EU producers of sensitive agricultural products such as several dairy products, beef and sheep meat, ethanol and sweetcorn.