By Dr Mark Avis
Something rather odd happened during the recent visit of Prime Minister Bill English to Europe. Out of the blue so it seems, the European Union (EU) has become enthusiastic about a trade deal with New Zealand. German Chancellor Angela Merkel was so positive about the prospect of a deal she said she would apply pressure within the EU to progress talks quickly. There is even discussion of settliing a deal within three years. On the face of it, this all looks like good news for New Zealand. However, such a view may be naïve.
One of the first concerns is that, although the New Zealand economy has diversified, agriculture remains one of New Zealand's most important industries - and this will present a significant challenge to achieving a trade deal that benefits New Zealand. Even a cursory review of the history of the Common Market and the EU will show a consistent policy of protection for EU agriculture from external competition.
The recent EU-Canada Comprehensive Economic and Trade Agreement (CETA) is informative, and I will quote an EU press release: "The CETA deal will not remove tariff barriers for public services, audiovisual and transport services and a few agricultural products, such as dairy, poultry and eggs."
In addition to these "few" and extremely relevant items, the EU deal also required Canada to comply with the EU system of 'European geographical indications' for 140 items. In practical terms, this means that New Zealand producers will not be able, for example, to call feta cheese 'feta'. Being required to call products by names which are not well-recognised will potentially hamper New Zealand sales and exports.