Gulf States Free Trade Agreement hailed

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The Dairy Companies Association of New Zealand (DCANZ) has hailed a new Free Trade Agreement (FTA) with the Gulf States.

The completion of FTA negotiations with the Gulf Co-operation Council (GCC) would boost New Zealand's dairy exports into the Gulf region, DCANZ Executive Director Simon Tucker said.

"The countries of the Gulf region are an important market for New Zealand's dairy exporters with sales worth approximately $750 million in the 2008/09 year," he said.

"The industry expects to make substantial gains through preferential market access to the GCC and leverage off growing dairy consumption in the region.

"It is great news to see the Government adding this new agreement to a growing portfolio of FTAs for New Zealand."

The FTA was signed with Bahrain, Oman, Kuwait, Saudi Arabia, the United Arab Emirates and Qatar, Trade Minister Tim Groser said.

"While there has been a real focus on the Asia-Pacific region of late, this FTA will provide a strong platform for export growth into a region that is likely to emerge strongly from the global recession," Mr Groser said.

"The agreement with the GCC offers valuable commercial advantages to New Zealand businesses."

Exports to the GCC totalled $1.3 billion in the year to June, an increase of 218 percent since 2000.

The group now ranks as New Zealand's seventh largest trading partner with bilateral trade worth $3.85b.

The FTA is likely to be signed in the first half of next year.

Business NZ welcomed the announcement and said the GCC represented an important and diverse trading partner.

"Both traditional and emerging New Zealand products and services stand to benefit, in particular food products, education, construction and building-related products, engineering services, agri-business and some specialised manufactured products," said Business NZ's export division manager Bruce Goldsworthy.

Meat and Wool New Zealand and the Meat Industry Association said it was very good news.

"New Zealand exporters of meat products and wool will know that the tariff-free access is secure," said Meat and Wool chairman Mike Petersen.

- NZPA