ASEAN FTA Significant Opportunity for Dairy Industry – Fonterra
Last financial year, ASEAN represented about NZD2.2billion to Fonterra and accounted for 25% of all the company’s exports from New Zealand. It is a market of more than 566 million people who are increasingly incorporating dairy into their everyday diet.
02/03/09 Fonterra CEO Andrew Ferrier said the signing of the ASEAN FTA agreement in Thailand is a significant step for New Zealand exporters and in particular, the dairy industry.
“Dairy tariffs into our key ASEAN markets typically range up to 10%. This agreement will eliminate tariffs on almost all of our dairy trade into the region and the risk that trade barriers could be introduced in the future,” Mr Ferrier said.
“ASEAN should be applauded for the commitment they are making to free trade. In an environment where many countries have resorted to protectionist policies, ASEAN has had the foresight to see greater benefits in developing strong regional trade relations.
Last financial year, ASEAN represented about NZD2.2billion to Fonterra and accounted for 25% of all the company’s exports from New Zealand. It is a market of more than 566 million people who are increasingly incorporating dairy into their everyday diet.
“We have a strong consumer and ingredients business in Asia. This will allow us to further grow our dairy supply in a populous region that has the huge potential for demand growth.”
Mr Ferrier added that ASEAN nations are not naturally dairy producing regions, whereas New Zealand is one of the most efficient producers of dairy products in the world.
“This FTA helps bring the nutritional benefits of Fonterra’s high quality dairy products to the region.”
The deal follows the signing of the China FTA last year and now means New Zealand will ultimately have tariff free dairy access to all of Southeast Asia and China.
“Both free trade agreements involved complex negotiations. It’s a credit to the Government’s negotiation team that New Zealand has achieved such a great outcome,” Mr Ferrier said.
Fonterra Board member Malcolm Bailey is in Hua Hin, Thailand representing Fonterra at the signing ceremony.
