Impact of US election on NZ exports
While it’s too early to say for sure, B+LNZ is closely monitoring developments in the US, one of our most valuable markets.
President-Elect Donald Trump made campaign comments about increasing trade tariffs, but it's unclear how these will translate into policy when he takes office on 20 January 2025. For now, B+LNZ supports the New Zealand Government’s 'wait and see' approach.
Thanks to the Trade and Relationship Manager Jason Frost, based in the US, B+LNZ is well-positioned to stay informed of any developments.
Additionally, B+LNZ Chair Kate Acland will be heading to the US early next year to strengthen the partnerships and ensure the New Zealand red meat industry’s interests remain front and centre.
"The US is an incredibly important market for us – it’s our largest beef market, second-largest lamb market, and currently our largest red meat market overall", says Acland.
"Over 85 percent of our beef exports to the US are lean cuts that blend with fattier American beef to create the ground beef essential to the iconic American burger. This blend supports both countries by meeting consumer demand while keeping costs steady for US consumers and farmers.”
Currently, New Zealand beef exports benefit from a WTO-specific tariff rate quota, allowing 213,402 tonnes of beef and veal to enter the US each year at a lower tariff rate (primarily US 4.4c/kg). Exports above this quota face a much higher tariff of 26.4 percent, which applies to competitors without similar preferential access under a WTO quota or Free Trade Agreement.
Other New Zealand red meat products face Most Favoured Nation (MFN) tariff rates, which vary by product. For instance, wool can face up to a 25 percent tariff, while pet food has no tariff.
"We work closely with the New Zealand Government and officials on these issues", says Acland.
"While our focus is on building and strengthening key relationships in the US, we also know that New Zealand exports to over 100 markets and that gives us options; exporters are good at adapting to meet demand".
B+LNZ will keep you updated as more information becomes available. We understand the US market's importance to farmers and are committed to maintaining our strong position to meet American demand.
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