New Zealand trade deal poses threat to UK sheep sector, says NSA

1st March 2022

The signing of a free trade deal between the UK and New Zealand allowing a significant increase in sheepmeat exports into the UK will create an unnecessary risk for Britain’s sheep farmers in years to come. This is the belief of the National Sheep Association (NSA) as it responds to the signing of the deal yesterday (Monday 28th February).

The New Zealand deal follows a free trade deal also agreed with Australia at the end of 2021 with both being hailed by the Department for International Trade (DIT) as successful agreements allowing extensive trade opportunities for many UK industries. The two deals, however, with the world’s largest sheepmeat exporting nations, don’t go far enough in protecting UK sheep farmers via the ‘special measures’. NSA is therefore concerned over where it is expected to transition to after 15 years when trade is expected to be liberalised completely.

NSA Chief Executive Phil Stocker comments: “Despite the current global supply and demand dynamics suggesting the UK won’t see a sudden increase of New Zealand lamb imported this deal is opening ourselves up to a level of risk that could come and bite us in years to come – and it could pave the way for Britain’s environmental and land management policies to reduce domestic production and then feed ourselves from anywhere across the globe.

“The New Zealand free trade agreement gives the opportunity for tariff-free volumes to rise incrementally from 114,000 tonnes now, to 165,000 tonnes by year 15, and this combined with the Australian agreement of 125,000 tonnes is almost the total volume of lamb consumed here in Britain. At the end of this 15 year period trade is expected to be liberalised completely and the only impact this can have is a move to more exports and imports which cannot be good for our carbon footprint or food security or a winding back of domestic production.

“Despite claims from New Zealand farming bodies that our seasons complement each other ensuring lamb can be found on supermarket shelves all year round, it ignores the fact that this is largely a one-way trade with little benefit to be gained by British sheep farmers. The UK’s rich diversity of sheep farming systems, and climate, means we can and do, serve our domestic market very well already. It is worth considering that the last two years has seen reduced imports of New Zealand lamb due to Brexit and covid, and our domestic supply chains have catered well for demand in the absence of this.

NSA is not in agreement with the model being proposed (and swallowed by many policymakers) that would see UK sheep farms tightening their production window and exporting more, with more imports brought in when product is not available. Mr Stocker concludes: “This to me doesn’t benefit our sheep farming system here in the UK and neither does it win on our aspiration for high standards, climate change targets, or reliable food security.”