The delay will allow more than $200 million in exports to enter the market with ease
Trade and Agriculture Minister Todd McClay has welcomed the move made by the European Commission to delay the implementation of the European Union’s Deforestation Regulation (EUDR) by 12 months.
According to the minister, the proposal will be helpful in providing certainty for New Zealand exporters while also making sure than more than $200 million garnered from current exports will be able to enter the market without being affected.
“This move to delay is sensible, and would give New Zealand exporters confidence that shipments on their way to Europe will continue to be accepted, reducing the pressure our primary exporters have been under in recent months,” said McClay.
The minister added that he had written to the EU commissioner to ask for an exemption for New Zealand exports as the mitigation of the potential trade consequences of the regulation together with pushing through with a delay was considered a priority by the government of New Zealand.
McClay explained that should changes not be made, the risks that came with the EUDR would be too costly for exporters to continue supplying the EU market and would affect more than $200 million in exports, which he said came at a time when action should be put towards growing the trade through the NZ-EU Trade Agreement.
“New Zealand does not have a deforestation issue, and while we share the EU’s goals of promoting deforestation-free products, we already have stringent domestic protections in place. Imposing these compliance costs on our exporters is not justified,” said the minister, adding that the delay served as an opportunity to engage with the commission to ensure that the EUDR would achieve its objectives without any problems.
“Kiwi exporters have strong sustainability credentials, and we expect this to be recognised by the EU as they refine this regulation,” said McClay.