The Government has reaffirmed its commitment to Southland farmers through a new trade agreement with the six-nation Gulf Cooperation Council (GCC), Invercargill MP Penny Simmonds says.
“This landmark agreement is set to bring substantial benefits to Southland exporters by removing tariffs on 99 percent of New Zealand's trade to the region within the next decade,” Simmonds explained.
In the year ending June 2024, two-way trade between New Zealand and the GCC was valued at $3.06 billion, with dairy exports accounting for $1.8 billion and red meat for $260 million. “The opportunities for Southland farmers are significant,” she added.
The agreement underscores the Government's dedication to strengthening the primary sector and boosting economic growth in Southland and across New Zealand. “By addressing both international trade barriers and domestic regulatory challenges, the Government is reinforcing its strong commitment to the primary sector.”
Reforms to the Resource Management Act (RMA) will further support farmers by removing “unworkable regulations.” Combined with this new trade agreement, the Government aims to unlock fresh economic opportunities for Southland’s rural sector.
This holistic strategy ensures Southland farmers and other primary producers are well-positioned to succeed in the global market. The GCC—comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—is the ninth-largest economy in the world, presenting a valuable market for New Zealand exporters.
“The GCC's demand for high-quality agricultural products aligns perfectly with Southland's strengths, creating a win-win situation,” Simmonds noted.
Through the removal of trade barriers, the Government aims to double New Zealand's export value over the next ten years, cementing the primary sector as a cornerstone of the national economy.
“This agreement is expected to be signed in early 2025, bringing it into force as soon as possible,” Simmonds concluded.
Published by arrangement.