Episode description
In today's Focus on Politics, Political Reporter Katie Scotcher looks back on a trade deal both sides found fault with, and ahead to the challenges it still faces.
"It is by no means a done deal ... there's going to be a huge diplomatic effort to push this across the line," - NZ's chief EU trade negotiator Vangelis Vitalis
Prime Minister Jacinda Ardern in July announced a finalised European Union (EU) trade deal but, after 14 years of lobbying and negotiations, insiders warn more effort will be needed to get it across the line.
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Prime Minister Jacinda Ardern and European Commission President Ursula von der Leyen.
Once signed, the agreement would remove tariffs on 91 percent of goods sent to the EU - New Zealand's fourth-largest export market - including kiwifruit, wine, onions, mānuka honey and seafood - increasing to 97 percent within seven years.
The government touted the agreement as a big political win, but while it meant big wins for argiculture and horticulture groups, other primary producers were not happy.
It would deliver up to $120 million worth of new annual export revenue for New Zealand's red meat and dairy sectors from day one, rising to $600m within seven years, but the Meat Industry Association said that amounted to just 0.1 percent of EU consumption in a potential market of nearly 500 million people.
New Zealand dairy farmers and cheese producers were also frustrated: The deal would see New Zealand producers of feta-style cheese forced to change the name within nine years. The rule will also apply to new producers of parmesan and gruyere cheeses, though producers already using those names could continue doing so.
Such "Geographical Indicators" are product names denoting a particular geographical location's quality, reputation or special characteristics, and something the EU was never likely to back down on.
But European farmers were not happy either - Copa Cogeca represents European farmers and its secretary general Pekka Pesonen said New Zealand had very little to offer the bloc which New Zealand already counts as its biggest import partner.
He said they could consider opposing the deal, but would want to see how import quotas would be managed and how they would work.
"We have, undoubtedly, some sectors where we have a major problem with the proposal or the outcome of the negotiations ... very much focused on dairy, sheep and beef."
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