The horticulture sector in New Zealand stands to gain from recent free trade agreements with the Gulf states, according to Associate Agriculture Minister Nicola Grigg. Grigg highlighted the free trade agreement with the Gulf Cooperation Council (GCC) and the Comprehensive Economic Partnership Agreement with the United Arab Emirates (UAE CEPA) as key factors poised to elevate horticultural exports.
In communication with HortNZ, Grigg pointed out the competitive nature of both the United Arab Emirates and the broader GCC market. However, she assured that New Zealand's horticulture exporters would benefit from tariff-free access. Horticulture exports to the UAE amounted to $44 million in the year to June 2024, with exports to the GCC reaching $72 million annually.
Grigg elaborated on the advantages of the agreements, which include preferential access for primary sector exporters, streamlined customs processes, and reduced trade barriers. She detailed how the agreements ensure the continuation of tariff-free access, with a plan to eliminate tariffs on all horticulture exports to the region over time. Specifically, peas and sweetcorn, which represent over $2 million in trade to the GCC, will see a 5% tariff removed within five years.
Furthermore, Grigg stated, "New Zealand will have duty-free access for all horticultural products by year ten, with tariffs removed on 92% of horticultural trade on entry into force." She emphasized that these agreements are crucial steps toward expanding New Zealand's international connections and aiming to double export values over the next decade.
Source: HortNews