European Union Free Trade Agreement Should Be A Boon For Southern Exporters

Further doors could be flung open for southern exporters with the prospect of a Free Trade Agreement with The European Union looming.

EU representative Michalis Rokas was in the south recently talking to local MP’s, local body mayors and Chambers of Commerce to bring them up to speed on the prospect of an FTA with the European Union.

Representatives from both sides are busy gathering and preparing information that will assist when full negotiations on the Free Trade Agreement start early next year.

Michalis Rokas says by eliminating tariffs and barriers behind the border further jobs will be created here in New Zealand and in the European Union.

While an FTA could open up more opportunities it might also seem like selling ice-cream to Eskimo’s as the EU is the largest exporter of agricultural products in the world.

The population numbers are also daunting, Europe’s 500million to our 4 and a half million

Michalis Rokas says feedback from southern leaders has been very positive and enthusiastic on the possibility of a big new market opening up.

He says obviously New Zealand has its eye on the prospect of more agricultural exports to Europe. But he adds New Zealand is rapidly expanding it’s services and infrastructure like Invercargill’s new airport terminal. Mr Rokas says there is a lot of EU expertise in this area.

Mr says there could be substantial opportunities with infrastructure with facilities like the Fonterra plant at Edendale and the wine industry in Central Otago. He says there is a lot of EU expertise, know how, machinery and equipment that is used in these and other industries.

He says another advantage of an FTA is that most of the EU and New Zealand agricultural products are counter seasonal so instead of competing both sides could get together to present their products to the vast Asian markets.

Michalis Rokas says the ambition is have a very modern Free Trade Agreement which will eliminate tariffs and red tape.

Being a diplomat Mr Rokas wouldn’t be drawn on whose wines were better, the wines of Europe or the wines of Central Otago.

He did say that our local wines are of excellent quality but are not that well known in Europe. Mr Rokas says a Free Trade Agreement and also the fact that there is a possibility of recognising the trade mark on wine, spirits and foodstuffs would make these products and the quality of them more well known and consumers in the EU would be willing to buy them.