A bilateral free-trade agreement with India could leave Kiwi sheep meat exporters out in the cold unless the emerging economic powerhouse relaxes its quarantine rules.
Trade Minister Tim Groser and his Indian counterpart Kamal Nath said on Saturday both governments were to negotiate a free-trade agreement, with negotiations scheduled to begin later this year.
The announcement immediately generated a buzz.
However, experts said reports the deal could open a vast untapped market for meat exports to India’s 1.1 billion people were premature and, unless the rules were changed, would be near impossible.
Invercargill-based company Back Country Foods managing director Arthur Ballantyne said yesterday the rules as they stood were clear.
"The access rules for meat exports to India published by the New Zealand Food Safety Authority currently state: ’meat and meat products derived from all species of land mammals are not able to receive certification necessary for export to India’," he said.
The company, which produces freeze-dried meals under the brand name Back Country Cuisine, predominantly for outdoor adventure use, markets the product throughout New Zealand, Australia and South Africa but had sent its products to India in the past, Mr Ballantyne said.
"We had placed orders of our freeze-dried meals, including cooked freeze-dried lamb, into India between 2003 and 2005 without problems."
However, those rules changed in 2006 and the company lost its Indian clients despite arguing his product was precooked and therefore free of any disease risk, he said.
New Zealand Food Safety Authority export standards deputy director Bill Jolly said New Zealand did not have access to India for sheep meat because of not being able to meet India’s current animal health disease freedom certification provisions.
"While the anouncement of the FTA negotiations doesn’t automatically change this, it will provide extra motivation and commitment from both sides for solutions to be found in the interim."
Meat & Wool New Zealand trade policy manager Tracey Paterson said an agreement on how governments could apply food safety and animal and plant health measures, known as sanitary and phytosanitary or SPS measures, would be looked at as part of any agreement.
Meat Industry Association chief executive Tim Ritchie said it was important to find leeway in the rules, given the potential size of the Indian market. "India very clearly is one of those markets the industry has targeted as showing great potential."
Mr Groser was unavailable for comment as he is in Thailand and expected to sign a free-trade agreement with that country today but a spokeswoman said it was too early to say what issues would be traversed with India’s government as part of the deal.
New Zealand exports coal, timber, wool, hides and skins to India. However, relatively few of New Zealand’s traditional food exporters are able to access the market.
New Zealand’s exports to India are worth $550 million a year.
Source : farminguk.com