12 Mar 2013

PM may raise dairy tariffs issue with Brazilian president

10:39 am on 12 March 2013

Prime Minister John Key says he may raise the issue of dairy import and anti-dumping tariffs with the Brazilian president when they meet on Tuesday.

Mr Key and the New Zealand delegation he is leading are in Brazil as part of his official tour of Latin American countries.

He said while New Zealand hasn't exported milk powder to Brazil for years, there's a steep tariff covering any such shipments, which New Zealand would like to see removed.

Mr Key said there was a perception years ago that New Zealand companies were dumping product in Brazil.

"So they normally pay a 28% tariff for milk powders coming in, plus a 3.9% anti-dumping tariff, that was renewed very recently."

Mr Key said New Zealand companies are not dumping in the Brazilian market and in fact New Zealand has not exported milk powder to Brazil since 2007.

He said the anti-dumping tariff had no practical impact but there is the issue of reputation.

Mr Key said he may raise the issue, and Primary Industries Minister Nathan Guy who is part of the entourage will definitely raise it with his counterpart.