The Country 06/03/25: Todd McClay talks to Jamie Mackay

We find the Minister of Agriculture and Trade at Mt Somers for Beef +Lamb New Zealand's Mid-season update launch. Plus, we talk about Trump, trade and tariffs.

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Episode Transcript

Speaker 1 (00:00):
Tom McLay is the Minister of Agriculture and Trade. We're
going to hear from Kate Ackland shortly from Beef and
Lamb New Zealand as they release their mid season update.
We'll keep Kate's power to dry on that one. But Todd,
I want to talk to you about trade. Gee, who
would want to be a Minister of trade at.

Speaker 2 (00:16):
The moment well as the New Zealand Minister of Trade.
There's always exciting times because there's always something going on.
But yes, the news of the last few days, Jamie
around the US and Canada and Mexico and China and
these tariff war escalating, but probably much more concerning for
not just New Zealand but the world. You know, the

(00:37):
social media from the President the other night is telling
us food producers to get ready, to be ready rich
and produce lots of food. Not so good for the others.
That's worrying for New Zealand, but you know what of
it is very destabilizing you for world markets. We're seeing
it in stock prices.

Speaker 1 (00:54):
If he puts tariff on or tariffs on all agricultural inputs,
obviously it affects us badly as a trading nation. But
it also makes food more expensive. For instance, in America.
How will that go down with the billy Bobs in
the Midwest who voted Trump.

Speaker 2 (01:10):
Well, that's the most important point. Actually, their hamburgers will
become more expensive. So it's a very big beef market
for US. I quality beef going up there, but actually
a lot of our beef faler Sat and Tallow, they
mix it with their beef and it goes into hamburger
chains and they depend upon it, and they choose the

(01:30):
New Zealand beef because it adds flavor that others known.
If hamburgers go up in price, I've been there, Jamie. Well,
if it's a bit of a staple, it will be inflation, right,
what we're going to see. And I've had a chance
this week to talk to the EU Trade COMMISSIONC and
the Canadian Trade Minister and starting to talk to a
few others. They are putting tariffs on in place of

(01:51):
already out some of them. They'll be very, very targeted
from Canada and they look at areas where it hurts
the most. And as their minister said to me, they
import about sixty billion dollars worth from a number of
states that manufacture as an example, washing machines. What are
tarif for me, they don't come anymore, some of those
factories will close, and so you know, the announcement around

(02:13):
agricultural trade is extremely concerning. I've got my officials in
Washington engaging now to find out one exactly what's going
on or what might happen, and to continue to make
the case of how well balanced we are in as
far as trade buying sell more or less the same
amounts that the US exports in New Zealand face much
lower tariff rates across the board generally than ours do

(02:35):
on the other side, because we're a low tariff regime.
And if you're going to do this to your friends,
what does it say to the rest of the world.

Speaker 1 (02:43):
Exactly, air two way trade with the US is roughly equal,
so you know, we're different than a lot of other
countries he's attacking.

Speaker 2 (02:52):
That's right. So there's no medication that he's singingly out
or focused on New Zealand, but there is you know,
I'm done to US. So Fisher and Piper Pipe, as
an example, have a manufacturing plant in Mexico selling into
the US and they are hit by the twenty five
percent tariff. Now, straight away, that's hurtful, harmful to them,

(03:14):
But ultimately what happens is you've put all these tariffs
arm You know, we are not less competitive in that
market because it's on everybody, but it is harder to
sell our product there. However, here's the most interesting thing.
We are very trade diverse. We have a very wide
network of FTAs around the world. And if you think

(03:35):
about China as an example, in the moment, the market
is soft for red meat and dairy and a few
other things for us. But you know they put a
tariff on usbef. What's the important It won't go and
it'll be too expensive. Those restaurants still need beef and lamb,
and the supermarket shall still need product there to sell
to Chinese consumers. They will pivot and come to countries

(03:56):
like New Zealand, so there will be opportunities for us
to sell more around the world. The EUFTA is not
even into force a year yet we've seen i think
remember almost a thirty percent increase in experts from New
Zealand and the EU sheep meat has been a big
part of that. So we will still do well. However,
restrictions of trade and tariff on New Zealand products are

(04:17):
going into the US is concerning and it will harm us.

Speaker 1 (04:19):
Todd McClay, Minister of Agriculture and Trade, good luck with
Trump and enjoy your day at Mount Somers.

Speaker 2 (04:27):
Thanks Jamie, looking forward to it, and I'm looking forward
to some very very good news for our sheep and
beest farmers from Cape shortly. It's going to be a
good day for them, I think,