FGC has joined 10 food producing and exporting organisations to write to the Government expressing concerns of export restrictions from some of NZ’s trading partners.
The letter says there are signs some countries are imposing export restrictions on medical and food products, and that will distort efficient markets and dis-incentivise investment in production and innovation, threaten food security and increase market volatility. The organisations say they are “very concerned” to see major food producing countries increasing subsidies, price interventions and other measures that will “inevitably exacerbate the effect of the crisis on others, and hamper recovery”.
They say NZ is well-placed to show leadership in upholding the rules-based trading system and starting a global conversation on tackling the trade distortions and discriminatory policies that stand in the way of food security, global recovery and future prosperity.
The leadership opportunities include: rejecting export restrictions, levies or policy interventions to promote self-sufficiency at the expense of the food security of others; maintaining NZ’s approach of limiting any agricultural support to non-trade distorting measures; focusing on removing costs and barriers from supply chains; promoting trade policy responses to countries concerned about food security that reduce food trade costs; avoiding distortion to markets by limiting government intervention into commercial market processes; working with the WTO to progress initiatives that support and strengthen the rules-based system.