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.
Full PostThe European Union concluded negotiations for a comprehensive and ambitious trade agreement with New Zealand on 30 June 2022.
Bilateral trade in goods between the two partners has risen steadily in recent years, reaching almost €9.1 bn in 2022.
The EU is New Zealand’s third-biggest trade partner.
According to an impact assessment on the FTA, trade between New Zealand and the EU is expected to increase by 30%, with removing tariffs alone saving businesses €140 million in duties per year. Moreover, EU investment flows into New Zealand could increase by over 80%.
The agreement, once it enters into force, will:
- Create significant economic opportunities for companies, farmers and consumers;
- Respect the Paris Climate Agreement and core labour rights, enforceable through trade sanctions as a last resort, and:
- Cement EU ties with a like-minded ally in the economically dynamic Indo-Pacific region.
Negotiations began in June 2018 and took place over 12 negotiating rounds. Following the conclusion of the negotiations, the negotiated draft texts went through a process of legal revision, and were translated. Once the agreement’s signature had been authorised by the Council, the agreement was signed on 9 July 2023. Following signature, the text is transmitted to the European Parliament.
Once the European Parliament has given its consent, and once the agreement has been ratified by New Zealand, it can then enter into force.