New Zealand and the European Union (EU) negotiated a Free Trade Agreement (FTA) in the latter part of 2022 and signed the FTA on 9 July 2023. The FTA created a Tariff Rate Quota (TRQ) for select beef products originating in New Zealand. Ratification and implementation processes are being concluded by New Zealand and European Union Parliaments with the EU–NZ FTA entering into force on 1 May 2024. New Zealand Meat Board (Board) has developed an allocation mechanism which will apply to the administration of the EU FTA Beef TRQ (Quota Allowance Allocation System (Allocation System)).

The Allocation System is established by the Board pursuant to its powers under the Meat Board Act 2004 (“Act”), in particular, Part 3.

On 19 September 2023, the Board agreed to the Allocation System for UK FTA Beef TRQ pursuant to section 23 of the Act. Under the agreed terms of the FTA and pursuant to section 24 of the Act the Allocation System specifies:

• The products to which it applies, being meat covered by the following CN codes: 0201, 0202, 0206 10 95, 0206 29 91, 0210 20 10, 0210 20 90, 0210 99 51, 0210 99 59, ex 1502 10 90 (beef only), ex 1502 90 90 (beef only), and 1602 50;
• The quantity of products to which it applies, being 3,333 tonnes (carcase weight equivalent) in Year 1, increasing by 953 tonnes (carcase weight equivalent) annually until Year 7. For Year 7 and subsequent years the quantity will be 10,000 tonnes (carcase weight equivalent);
• The country or group of countries where the relevant quota market exists, being the European Union;
• The tariff rate applying to CN codes 0201, 0202, 0206 10 95, 0206 29 91, 0210 20 10, 0210 20 90, 0210 99 51, 0210 99 59 and 1602 50, is 7.5% for ‘in quota’ imports;
• The tariff rate applying to CN codes ex 1502 10 90 (beef only), ex 1502 90 90 (beef only) is 3.2% for ‘in quota’ imports however as the in and out of quota rates are identical these products are excluded from allocation under the Allocation System;
• Other administration mechanisms.

The Allocation System will come into effect when the EU–NZ FTA enters into force on 1 May 2024.

A Quota Manual comprising the complete Allocation System is available at https://www.nzmeatboard.org/quotas/eu-fta-beef/quota-manual/ or by contacting info@nzmeatboard.org.

Dated at Wellington this 27th day of March 2024.

N. BEEBY, General Manager – Quota and Information, New Zealand Meat Board.