Agri-Environmental Policy and Market Developments in the EU and Their Potential Impact on New Zealand Trade

The developments in the European Union (EU) and its environmental policy have important implications for New Zealand. While the importance of the EU as a market for New Zealand produce has diminished, it is still significant accounting for 17 per cent of exports (6 per cent of which are to the UK) especially as a high value market and in commodities such as sheepmeat, fruit and dairy. It is because of the importance of primary products in New Zealand trade with the EU and the fact that much EU environmental policy intervention and market changes are in the primary products sector that this chapter will concentrate upon EU environmental policy and its impact on agriculture.