The Dairy Companies Association of New Zealand (DCANZ) has labelled the proposal by Britain and the European Union (EU) to arbitrarily split NZ’s tariff rate quotas of butter and cheese as ‘unjustifiable and flawed’.
DCANZ executive director Kimberly Crewther says that if the change in quotas goes ahead, New Zealand won't have the same trade opportunities as we have today.
"It's a loss of flexibility, which in trade terms means a loss of opportunity and value with that quota."
DCANZ have joined with counterpart dairy associations around the world in a call for G20 leaders to reject trade-distorting action.
The Global Dairy Associations describe this as imposing unscientific, overly burdensome or trade-distorting nontariff regulations; unilaterally raising tariffs in ways that are not WTO-compliant; or providing WTO illegal export subsidies.
They say these actions undermine the functioning of value chains, lead to trade diversion, more volatile commodity prices and lead to a less efficient allocation of resources with higher costs.
Watch the full interview with Kimberly Crewther above.