TPP deal to free up dairy trade would reduce volatility

Opinion – DairyNZ DairyNZ chairman John Luxton writes that major TPP players are holding their dairy consumers to ransomTPP deal to free up world dairy trade would reduce volatility DairyNZ chairman John Luxton writes that major TPP players are holding their dairy consumers to ransom The news that the Trans Pacific Partnership (TPP) deal has not been agreed because of differences over autos, dairy and intellectual property is no surprise to anyone. Some of the major players have sought to maintain trade protection rather than to reduce it. It seems incredible that the US dairy industry has so far convinced the US negotiators that they need to be protected from any increase in New Zealand dairy imports into the US. The New Zealand dairy industry is the only dairy sector in the TPP which is predominantly export focussed. Around 95% of our production is exported which represents around 25 to 30 percent of New Zealand’s exports by value. The next closest is Australia which exports around 40 percent of their dairy production, but this represents only around 2 percent of Australia’s export earnings. The US dairy sector currently provides much less than 1 percent of the US’s total exports, but by volume the US is still the largest exporter of milk powder, cheese, and dairy proteins in the TPP region. The US dairy industry is four times larger than...

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