Manawatu exporters wary of Brexit chaos, welcome new deal

Stuff.co.nz

Manawatū exporters welcome a new continuity of trade agreement with the United Kingdom as a "sensible" dose of certainty in the chaos surrounding Brexit negotiations.

Earlier this week, the New Zealand government signed a "mutual recognition agreement" with the UK, seeking to reassure businesses that regulations will remain stable post-Brexit, and exporters used to exporting to the UK as part of the EU would not see much disruption.

Palmerston North City Council economic policy advisor Peter Crawford said Manawatū will feel some fallout from Brexitespecially in a no-deal scenario, and particularly in agriculture and manufacturing, the region's two biggest export industries.

"A lot of our region's [exporters] use the UK as a base, and entry point to the EU - because of the shared language and our historical links to Britain."

And Prime Minister Jacinda Ardern told the BBC that a no-deal Brexit would be a very difficult situation that "would impact on just about everybody, business ... particularly the smaller businesses."

UK Prime Minister Theresa May has refused to rule out that scenario - which will see the UK abruptly crash out of the EU with no transitional arrangements or deal on trade on March 29.

GETTYJacinda Ardern and British PM Theresa May met to discuss the countries' post-Brexit relationship in London this week. (Photo by Jack Taylor/Getty Images)

Simon Barnett, founder of Palmerston North-based sports gear manufacturer OBO, said Brexit is a mixed bag, with both dangers and opportunities, for New Zealand exporters.

When the UK joined the EU it greatly reduced its trading with New Zealand. Brexit could prove to be a chance for Kiwi exporters to step in to the gaps left by companies pulling out of a post-EU Britain, particularly in agriculture, Barnett said.

But potential regulatory changes and tariffs could cause significant problems for exporters.

The European mainland and the UK account for 40 per cent of OBO's export sales, and any changes to regulations due to Brexit could cause significant difficulties.

"It's a very important part of our business, so we've been keeping a close eye on the developments around Brexit."

As a sports equipment manufacturer, OBO is mainly watching for potential changes to UK safety regulations. Although Barnett believes they're unlikely to change.

So far, Brexit's most widespread impact is the uncertainty around exactly how it will shake out, he said.

"Companies and consumers don't like uncertainty, it tends to make them a bit more cautious and less likely to buy things."

Barnett thought the continuity of trade deal goes a long way to restoring certainty for Kiwi exporters.

"It's a very sensible and reasonable measure to take.

"It gives a framework for bureaucrats to work with, and signals they'll be trying to keep regulatory changes to a minimum."

BusinessNZ chief executive Kirk Hope raised concerns that New Zealand lamb sales could be threatened if the EU imposes tariffs on British lamb, keeping more home-grown lamb in the UK market after Brexit.

But, Manawatū's Coastal Spring Lambs co-owner Richard Redmayne is not concerned.

In the end, the EU and UK will eat the same amount of lamb, it's just a question of who supplies it, he said.

"So If Britain decides to keep more of its lamb for domestic use, that'll open up opportunities in Europe for Kiwi suppliers - and vice versa. [But] we'll just have to wait and see, until it plays out."

0
0
おすすめ