The dairy sector has welcomed the announcement by Prime Minister John Key that talks on a free trade agreement (FTA) between New Zealand and Russia, Belarus and Kazakhstan will start early next year.Mr Key made the announcement at the Apec summit in Japan
The dairy sector has welcomed the announcement by Prime Minister John Key that talks on a free trade agreement (FTA) between New Zealand and Russia, Belarus and Kazakhstan will start early next year.
Mr Key made the announcement at the Apec summit in Japan yesterday.
He said such trade deals offered "real benefits" for jobs and economic growth in New Zealand.
"The Government has an ambitious trade agenda and trade has been identified as one of our six drivers of economic growth," Mr Key said.
Fonterra said today an FTA had the potential to make the region an even more important partner for the dairy industry.
"Russia is one of the world's largest markets for imports of butter and cheese and a significant dairy export market for New Zealand," said Fonterra group director Kelvin Wickham.
"New Zealand dairy exports to Russia, mostly butter and cheese, were last year worth around $120 million."
The Dairy Companies Association (DCANZ) said it was great news for the industry.
"New Zealand is really picking up the pace in the FTA game," said DCANZ chairman Malcolm Bailey.
"Adding Russia, Belarus and Kazakhstan to our growing list of FTA partners should mean new market opportunities for New Zealand dairy exporters."
Mr Key said an FTA with Russia would give New Zealand an improved position there.
"There is further strong growth potential, not only in food and beverage exports but also in agritech, specialised manufacturing and clothing.
"Taking the initiative to have this FTA will position New Zealand well. It will further integrate us regionally, and will also complement our existing FTAs and those under negotiation such as the Trans Pacific Partnership."
The Prime Minister said New Zealand was highly experienced in international trade negotiations, with a history of high quality FTAs, and "is therefore an attractive partner for Russia".
Speaking to Russian President Dmitry Medvedev on the sidelines of the Apec summit, Mr Key said: "For both countries this is a very good opportunity."
Mr Medvedev said that "this initiative will create a new trade regime between our countries".
The announcement followed a meeting between Trade Minister Tim Groser and Russian Economic Development Minister Elvira Nabiullina in Japan last week.
Mr Nabiullina, Kazakhstan's Minister of Economic Development and Trade Zhanar Aitzhanova, and Belarus' Minister of Foreign Affairs Sergei Martynov and Mr Groser agreed today to the start of negotiations of a comprehensive and modern FTA between their countries.
