ADIC Media Release – NZ trade deal with EU is “no precedent” for FTA with Australia

Common names for much-loved cheeses could disappear from dairy products in Australia if the European Union (EU) imposes a trade restrictive geographic indications of origins (GIs) regime on Australia through a free trade agreement (FTA), as it did to New Zealand last week, the Australian Dairy Industry Council (ADIC) warned today.

“New Zealand’s deal with the EU, which restricts the use of cheese names such as feta, parmesan and gruyere, does not set a precedent for Australia’s FTA with the EU,” says ADIC President Rick Gladigau.

“The outcome that New Zealand has given up to the EU on GIs will not be accepted by the Australian dairy industry. We will continue to defend the right to call dairy products by their common food names.”

The ADIC has calculated that the EU’s demand to restrict many cheese and dairy product names in Australia could put at risk local products with an aggregate sales value of more than $650 million. The potential direct impact on Australian dairy manufacturers from lost sales and increased marketing costs caused by the strict enforcement of GIs could range from a staggering $70-90 million per year in the early stages of the FTA.

“The blanket adoption of the EU’s demand that an FTA grant GI protection to 56 EU cheese products in the Australian market would adversely affect many local cheese producers and exporters,” says Mr Gladigau.

“It would impose considerable and unnecessary costs on local industry and their regional communities.”

Many of the cheese names for which the EU is seeking GI status are widely considered to be common food names not just in Australia but also in many other countries with which Australia has established FTAs.

“Privileging the future use of these names solely to EU producers would unfairly displace Australian product from the local and export dairy markets,” says Mr Gladigau.

“It would undermine the future sales, marketing and employment of many long-established Australian dairy brands and businesses, including many processors of these chesses who are European migrants, and it will ultimately have a negative impact on dairy farmers.”

Mr Gladigau says the dairy industry supports free and fair trade and it looks forward to continuing to work with government on this deal, to achieve a win-win outcome in the best interests of the Australian dairy sector.

ENDS

Media contact: Mark Paterson, Currie, mark@curriecommunications.com.au +61 (0) 409 411 110.