Sirma Karapeeva: Meat Industry Association CEO on the impact of US tariffs on beef exports

New Zealand exporters are in the firing line, as tariffs of at least 10% are now being imposed on almost all goods. 

The US surpassed Australia as our second largest export destination for beef last year due to a sharp rise in meat exports. 

There’s billions of dollars' worth of trade in the sector, as the United States is unable to meet their consumption demand with their domestic production.  

Meat Industry Association CEO Sirma Karapeeva told Andrew Dickens we currently trade with a “nuisance tariff” of only a few cents, so this 10% is essentially imposing over 9.3% extra cost on exports. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Well, Donald Trump promised global tariffs and he did it.
New Zealand exporters are finally in the firing line. We've
been hit with a ten percent tariff on all imports
into the States and across all industries, and the twenty
percent that the US published to calculate the tariff was
calculated off trade deficit rather than tariff, So that's what
we're questioning. So look, we are considered by some to

(00:21):
be the lucky ones because some countries have been hit
between twenty to forty nine percent. I'm joined now by
the chief executive of the Meat Industry Association, So Makada Beaver,
Good morning to you, sir, Good morning. Oh I'm sorry.
Are we the lucky ones? Oh?

Speaker 2 (00:39):
Look, I don't know that anyone is lucky in this context.
It is quite quite a shock, even though it's not
an unforeseen shock, was forecasted for quite some time, but
the fact that it has transpired, as you know, as
quite disappointing. And I don't think anyone can count themselves

(00:59):
lucky because the impact of tariffs will have a significant
disruption and global trade.

Speaker 1 (01:06):
What are you more worried about the actual tariffs on
New Zealand? Products or as you say, the overall effect
on the entire global trade system.

Speaker 2 (01:13):
Oh, I think both of them are very much interconnected.
And you know, and our trade we are very globally connected,
with our exports going to over one hundred and ten
markets around the world. So when one market is in distress,
then that has flow on implications for other markets. In

(01:34):
this case, the US is a key importer and export
of beef. Therefore, the US announcement is likely to impact
global beef markets anyway, with a number of other countries
looking to redirect their products.

Speaker 1 (01:49):
Let's just isolate the effect on you to the United
States of America and there are tariffs that they will
be putting on. I mean, how big is our trade
with America and how will that that will trade be
affected for US?

Speaker 2 (02:03):
Well, the US currently is our number one beef export market.
It has billions of dollars worth of trade and it
has increased over the recent times, partly because there is
strong demand for a product in the United States and
also because their domestic domestic production cannot necessarily meet their

(02:24):
domestics consumption demand. So it is going to impact on US.
We currently trade under small quota with a very small
tariff and nuisance tariff is what we call it, just
a couple of sen sequilo. The ten percent is essentially
imposing over nine point three percent extra cost on our

(02:47):
exports and that is going to be significant.

Speaker 1 (02:50):
Would you retaliate or not? Is it just not worth it?

Speaker 2 (02:54):
Well, I think every action has an equal and opposite reaction,
I guess so, I'm not sure that retaliation is quite
the right approach. What we do need to do is
just work within the system as best as we can
and you know, argue the fact that we are a
good trader, good trading partner to the United States, our

(03:15):
products complementary and with the commercial angles to find the
best way to put our product.

Speaker 1 (03:22):
In very good look. I wish you like going forward.
That is firm Cauda Peaver, who comes from the Meat
Industry Association.

Speaker 2 (03:29):
For more from earlier edition with Ryan Bridge, listen live
to news Talks it be from five am weekdays, or
follow the podcast on iHeartRadio.