NZ agrees on FTA talks with world's largest buyer of cheese and butter
New Zealand, the world’s biggest dairy exporter, agreed to begin work on a free trade accord with Russia, the world’s largest market for butter and cheese.
Russia, the world’s fifth-largest food importer, will begin formal negotiations once studies are completed in coming months, Trade Minister Tim Groser said today in a statement.
Any deal would include Belarus and Kazakhstan, which are customs union partners of Russia, Groser said after meeting yesterday in Moscow with Russian Economy Minister Elvira Nabiullina reports Bloomberg.
Removing tariffs would boost sales for New Zealand-based Fonterra, which last year supplied 50 percent of Russia’s internationally imported butter.
“Russia has the potential to become an even more important market for the dairy industry and Fonterra,” Fonterra said.
New Zealand’s exports to Russia were worth NZ$187 million last year, of which about two-thirds were dairy products. That’s a fraction of the more than the $30 billion of food Russia purchases annually.
New Zealand has established free trade relationships with nations including China, Thailand, Singapore and Chile to bolster exports, which make up 30 percent of the NZ economy.
It is also in bilateral FTA talks with South Korea, India, and the Gulf Cooperation Council.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.