The New Zealand Minister of Trade, Phil Goff, says concerns that a free trade deal between New Zealand and the United State will be of little benefit to U.S. dairy farmers aren’t correct.
U.S. dairy farmers fear the trade deal will flood their market with New Zealand dairy products. But Goff says an independent analysis of the proposed deal by U.S. economist Fred Bergsten reveals both countries will benefit from an agreement. It’s estimated that U.S. merchandise exports to New Zealand will rise by 25%, and worries that New Zealand dairy products will flood the U.S. aren’t possible, he says.
The U.S. is the second largest dairy industry in the world with total milk production more than five times that of New Zealand. In reality, NZ does not have the capacity to flood the market, says Goff.
