Brussels, 9 July 2023 (TDI): The European Union (EU) and New Zealand have officially signed their Free Trade Agreement (FTA) today.

This groundbreaking agreement is poised to deliver significant benefits for the EU, including substantial reductions in duties for EU companies and a projected increase in bilateral trade of up to 30% within a decade.

The FTA is expected to yield immediate results, with an estimated €140 million in annual duty savings for EU companies from the first year of application.

Furthermore, the agreement has the potential to boost EU annual exports by up to €4.5 billion, while EU investment in New Zealand could experience growth of up to 80%.

Both the EU and New Zealand have pledged to uphold the principles of the Paris Climate Agreement and core labor rights, demonstrating their shared commitment to environmental responsibility and social progress.

The EU-New Zealand FTA will eliminate tariffs on EU exports to New Zealand, unlocking new avenues of trade and expanding market access.

Additionally, the agreement will open up the New Zealand services market in key sectors such as financial services, telecommunications, maritime transport, and delivery services.

It will also ensure non-discriminatory treatment for EU investors in New Zealand and vice versa, fostering a favorable investment climate.

Small and medium enterprises (SMEs) will benefit from dedicated provisions in the FTA that facilitate their export activities. Compliance requirements and procedures will be significantly reduced, enabling quicker and smoother trade flows.

Also Read: France Supports Ukraine in war crime investigation

Furthermore, the agreement prioritizes data flows, digital trade, and personal data protection, creating a secure online environment for consumers.

Agriculture sector

The agri-food sector stands to gain significantly from the FTA.

EU farmers will enjoy immediate opportunities to sell their products in New Zealand, with tariffs eliminated on key exports such as pig meat, wine and sparkling wine, chocolate, sugar confectionery, and biscuits.

The FTA also includes robust protections for EU wines, spirits, and over 160 European geographical indication products, safeguarding their unique identities and reputations.

Sustainability

Notably, the EU-New Zealand FTA integrates the EU’s new trade and sustainable development approach, emphasizing the importance of green and just economic growth.

The agreement encompasses ambitious commitments in areas such as sustainable food systems, trade and gender equality, and trade and fossil fuel subsidies reform.

Next steps

The agreement now moves to the European Parliament for consent, followed by the ratification process in both the EU and New Zealand.

The deal will enter into force once all necessary procedures are completed, marking a new chapter in the economic cooperation between the EU and New Zealand.

Ursula von der Leyen, President of the European Commission, emphasized the significance of the EU-New Zealand partnership, stating, “This modern free trade agreement brings major opportunities for our companies, our farmers, and our consumers, on both sides. With unprecedented social and climate commitments, it drives just and green growth while reinforcing Europe’s economic security.”

 

RELATED ARTICLESMORE FROM AUTHOR