Hon Phil Goff
Minister of Trade

19 February 2007
Media statement

Egyptian Tariff Reductions Good News for New Zealand

Trade Minister, Phil Goff has welcomed the decision by the Egyptian Government to reduce or eliminate tariffs on key New Zealand exports.

"Last December during a trade visit to Egypt, I raised with Egyptian Trade and Industry Minister, Rachid Rachid our concern that with elimination of tariffs on European imports, New Zealand agricultural exporters would be disadvantaged," said Mr Goff.

"Minister Rachid responded positively to my representations and undertook to consider extending tariff reductions on dairy and meat products from New Zealand and other countries.

"Egypt's announcement that tariffs on milk powder and sheep meat products have now been eliminated and tariffs on butter and cheese reduced from 5 to 2 per cent is very welcome.

"Over 85 per cent of our $160 million worth of exports to Egypt each year are dairy products. This will mean immediate tariff savings of around $3million a year to the dairy industry. With removal of volume limits, this should encourage greater trade in these products in the medium term.

"Tariff elimination on sheep products will further encourage trade in sheep meat which has more than doubled in the last year to around $2.6 million.

"The reduction of tariffs is a positive development at a time when New Zealand is looking to lift its bilateral relationship with Egypt to a new level. The Prime Minister's visit in April to open officially our new Embassy in Cairo will provide a further opportunity to promote New Zealand's position on issues such as this, Mr Goff said.

ENDS

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