WELLINGTON: Implementing a border tax in the United States is creating significant uncertainty for New Zealand beef and wine exporters, which count the US as their biggest market by some distance.
The United States is New Zealand’s third biggest export destination after China and Australia, taking in $5.3 billion worth in 2016.
Meat exports dwarf all the other New Zealand export products to the US, with beef alone accounting for $1.2b last year.
In sheep meat, the US is the third biggest market with annual receipts totaling $270 million.
The wine trade also counts the US as its biggest market, worth just under $500m and growing strongly. The second biggest is Britain, which takes just under $400m, has its own issues on the trade front after last year’s surprise vote to leave the European Union, dubbed “Brexit”.
Local exporters said the appointment of a US trade representative would be keenly watched for clues as to where policy will go from here.
Robert Lighthizer, a former official in the Reagan administration, an ardent trade protectionist, and Trump’s pick for trade representative, is set to appear before the Senate Finance Committee this week.
Sam McIvor, chief executive of Beef and Lamb New Zealand, said America’s choice of trade representative would be key.
