9. R DOUG WOOLERTON (NZ First) Link to this
to the Minister of Trade
What does the Minister estimate the likely annual revenue loss to this country will be if changes to the European Union butter import rules mean that Fonterra can no longer act as sole importer to the European Union for its products?
Hon PHIL GOFF (Minister of Trade) Link to this
The suspension of New Zealand butter imports to the European Union in July clearly put New Zealand’s butter trade and revenue at risk. However, in working with officials we were able to first avoid disruption to the butter trade, then, through an interim arrangement, ensure that we could fill—and we have filled—our 2006 butter quota without loss of revenue to the New Zealand exporter. No decision or agreement, however, has yet been reached on rules that may apply in future years.
Does the Minister envisage any long-term loss of market share as a result of the European Union decision, and what steps, if any, are Government trade negotiators taking to avoid such a loss from occurring?
I am sure it would be the intention of the European Commission, if it thought it could achieve it, to remove the quota rent from New Zealand. However, New Zealand is staunchly resisting that. The negotiators have been in Brussels in the last two weeks of last month. We have made it absolutely clear that our expectations are that although the European Court of Justice decision is upheld, that will not be at the expense of a contract negotiated between, and accepted in good faith by, the European Union and New Zealand back in 1995.