Beef + Lamb New Zealand has criticised President Trump's decision to withdraw from the Trans Pacific Partnership, calling it 'disappointing for sheep and beef farmers”.

Chairman James Parsons says it's a significant blow for trade liberalisation in the Asia Pacific region in the short term.

'Ironically, the lost opportunity to our sector from President Trump's decision mostly lies outside of the US.

'The TPP would've had only a relatively minor positive impact on our trade with the US due to existing low tariff rates faced by New Zealand beef and lamb in that market. The real value to our sector was in reducing tariffs and creating a level playing field in high-value Asia Pacific markets, Japan in particular.”

Due to the Japan-Australia FTA, Australian beef entering Japan enjoys a tariff rate that is 10 percentage points lower than that faced by competitors such as New Zealand and the US.

As a direct result, over 2015 and 2016 Australian beef exports to Japan have increased by 13 per cent, while those from New Zealand and the US have fallen by 10 and 11 per cent, respectively.

'The reality is that, in the short to medium term, New Zealand will struggle to complete a bilateral FTA with Japan to achieve a level playing field on beef.

'Our competitiveness in that market, and our resulting market share, will continue to be affected for some time.”

He says although this is a setback, there remain a number of possibilities for multilateral FTAs in the Asia Pacific region.

'The remaining TPP parties may revise their agreement to remove US concessions and press on with an agreement as a way to show trade leadership in the region. The Regional Comprehensive Economic Partnership, which is under negotiation and includes New Zealand alongside ASEAN countries, China, India and Japan, also provides an opportunity to free up access and establish common trading rules in the Asian region.

'Over the coming weeks and months Beef + Lamb New Zealand will continue to work alongside the government and other industry groups as we come to terms with this setback and work through continuing to press for trade liberalisation. Decisions in the US and Europe over the past 12 months have added a lot of uncertainty, but it is critical that we as an export sector continue to keep the pressure up.”

In the next fortnight, two Beef + Lamb New Zealand directors will travel to the US to hear directly from ranchers their take on President Trump's decision and where the US is likely to head next.