Trade Minister Todd McClay announced the NZ EU Free Trade Agreement’s commencement, significantly benefiting Kiwi exporters with $100 million in tariff reductions. The agreement, resulting from over 15 years of efforts, enhances New Zealand’s trade prospects by improving market access for key exports like kiwifruit, wine, and seafood, and aligning with the country’s strategic goals to double export values over the next decade.
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The New Zealand Government is accelerating efforts to activate the New Zealand – European Union Free Trade Agreement (NZ-EU FTA) earlier than anticipated, promising significant economic benefits and tariff savings for Kiwi exporters. This move is expected to facilitate an additional $46 million in tariff savings this season alone, with Kiwifruit and Onion exporters standing to benefit immediately upon the agreement’s early enforcement.
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Trade and Agriculture Minister Todd McClay has announced a swift governmental action to unlock $46 million in tariff savings for Kiwi exporters in the EU market this season, as the New Zealand Parliament wraps up the final legislative steps to enforce the NZ-EU FTA months ahead of schedule. Highlighting the deal’s substantial advantages, McClay noted that an expedited enforcement would result in $43 million in savings for Kiwifruit exporters and $3 million for Onion exporters, bypassing the initial timelines that could have missed the bulk of this year’s exports.
The EU has finalized its ratification processes, with the European Parliament and Council signing off the agreement, positioning New Zealand to fulfill its part to bring the FTA into effect by 1 May, much earlier than the anticipated July or August. This agreement is set to elevate New Zealand’s trading landscape, increasing economic resilience, ensuring fair market access, and contributing to the government’s ambition to double export value within a decade.
Once enacted, the FTA will encompass over 70% of New Zealand’s exports, marking a milestone in the country’s trade relations and offering free and fairer market access to the EU, New Zealand’s fourth-largest trade partner. The deal promises to enhance GDP by up to $1.4 billion and boost exports to the EU by up to $1.8 billion annually by 2035, with immediate tariff savings of $100 million for New Zealand exports to the EU.