New Zealand & EU conclude negotiations on major free trade deal

The deal provides duty-free access on 97 per cent of the New Zealand’s existing goods trade to the EU within seven years, 91 per cent from day one.

PM Ardern said: “Our EU-NZ FTA is expected to increase the value of New Zealand’s exports to the EU by up to $1.8 billion per year from 2035. For comparison that’s more lucrative than the benefits derived from our recent UK FTA. It’s a strategically important and economically beneficial deal that comes at a crucial time in our export led COVID-19 recovery.

“It cuts costs and red tape for exporters and opens up new high value market opportunities and increases our economic resilience through diversifying the markets that we can more freely export into. The complete removal of duties on the majority of products New Zealand exports to the EU is a major achievement in a deal that covers market access into 27 European countries.”

This is New Zealand’s fifth Free Trade Agreement in the past five years.

Damien O’Connor, who has spent the week in Brussels negotiating with his counterparts said the deal provided access for products that were previously locked out in the historically difficult to access European market. “With total savings on tariffs worth $110 million annually, $100 million up front, the deal will make our exports immediately more competitive in the EU market and provides a platform for growth.”

O’Connor added: “This FTA also helps to level the playing field and creates significant opportunity for more great Kiwi businesses to diversify into this high-value market. Importantly, the services and investment ‘Most Favoured Nation’ outcome will ensure the FTA remains at the cutting edge, with New Zealand able to receive the benefit of services market access and investment treatment the EU may agree to in future FTAs.

“It also delivers a positive outcome for New Zealand businesses seeking access to EU’s large government procurement market for goods and services worth more than $3 trillion. Consistent with our approach to trade negotiations, the agreement contains legally enforceable commitments on climate action, environment and labour standards and gender equality.”

The EU is New Zealand’s fourth-largest trading partner with two-way goods and services trade was worth NZ$17.5 billion in for the year to December 2021.

Fibre2Fashion News Desk (KD)