Wool has been classified as an "environmental good" under the Agreement on Climate Change, Trade and Sustainability, an innovative agreement that will help eliminate tariffs in several countries.
Beef + Lamb New Zealand international trade senior manager Frances Duignan said the recognition was a win for New Zealand sheep farmers and part of a positive trend in global agreements.
The agreement covers trade deals between New Zealand and Costa Rica, Iceland and Switzerland, and was open for other countries to join and will remove tariffs on many products that benefit sustainability and the environment.
Negotiations started in 2019 and Beef + Lamb appreciates the effort of trade negotiators to secure the win, she said.
"We advocated strongly for wool to be classified as an ‘environmental good’. It follows similar recognition in the recent United Kingdom Free Trade Agreement."
New Zealand did not face any tariffs when exporting wool to the countries in the agreement.
However, the classification did create a useful precedent when engaging with countries where New Zealand did face tariffs.
"We hope this classification will improve wider recognition of wool as a sustainable product. While Beef + Lamb’s levy-funded activity does not directly include wool, the market outlook for wool is important to sheep farmers so we welcome positive changes."
