New Zealand and US Trade Officials Discuss Tariffs and Trade Investigations

New Zealand's Agriculture, Trade and Investment Minister Todd McClay met with US Trade Representative Jamieson Greer and Secretary of Agriculture Brooke Rollins in Washington this week to address concerns over US tariffs and their impact on Kiwi exporters. The meeting came amidst rising tensions over trade, with the US imposing a 5% tariff on New Zealand exports in July, citing a trade surplus. Minister McClay expressed concerns that these tariffs create an uneven playing field for New Zealand exporters compared to other countries that subsidize their production. Ambassador Greer acknowledged New Zealand's low tariffs on US goods and confirmed that the additional tariff was part of a new trade policy aimed at addressing imbalances in the trade relationship. The two sides agreed to meet again to discuss the impact of tariffs and explore ways to give exporters greater certainty.

Key Takeaways:

• Minister McClay expressed concerns that US tariffs create an uneven playing field for New Zealand exporters, who face higher costs compared to other countries that subsidize their production.
• Ambassador Greer confirmed that the additional 5% tariff imposed on New Zealand exports was related to the country's trade surplus and was part of a new trade policy aimed at addressing imbalances in the trade relationship.
• Ambassador Greer acknowledged New Zealand's low tariffs on US goods, citing an average tariff rate of 0.3% on US goods imports.
• Minister McClay and Ambassador Greer agreed to meet again in Malaysia in September and in Korea in October to discuss trade and consider next steps to strengthen trade.
• The two sides shared concerns about the harm caused by heavily subsidized, trade-distorting practices of some countries on the dairy industries of both New Zealand and the US.
• Minister McClay, Secretary of Agriculture Rollins, and Ambassador Greer agreed to explore ways to jointly combat these harmful practices and support dairy farmers.

Statistics:

• Average tariff rate faced by US goods imports into New Zealand: 0.3% ([1])
• New Zealand-US trade relationship: two-way trade is well balanced and complementary ([2])
• Additional 5% tariff imposed on New Zealand exports: part of a new trade policy aimed at addressing imbalances in the trade relationship ([3])
• New bottom tariff rate for countries with a trade surplus: 15% or higher, as confirmed by Ambassador Greer ([3])
• Date of next meeting: ASEAN Trade Ministers' Meeting in Malaysia in September and APEC Leaders' Summit in Korea in October ([2])

Sources:

[1] No specific source mentioned in the original text.