EU and New Zealand sign ambitious free trade agreement
July 10, 2023
The EU and New Zealand have signed their free trade agreement (FTA), which will deliver significant gains for the EU.
The deal will cut some €140 million ($153 million) a year in duties for EU companies from the first year of application. As a result, bilateral trade is expected to grow by up to 30% within a decade, thanks to this deal, with EU annual exports potentially growing by up to €4.5 billion ($4.93 billion). EU investment into New Zealand has a potential to grow by up to 80%.
This landmark agreement also includes unprecedented sustainability commitments, including respect of the Paris Climate Agreement and core labour rights.
The agreement is now sent to the European Parliament for its consent. Following the completion of the ratification process in both the EU and New Zealand, the deal enters into force.
Ursula von der Leyen, President of the European Commission, said: “New Zealand is a key partner for us in the Indo-Pacific region, and this free trade agreement will bring us even closer together. With today’s signature, we have taken an important step in making the agreement a reality. 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”.
The EU-New Zealand FTA will provide new opportunities for businesses by:
- eliminating all tariffs on EU exports to New Zealand;
- opening the New Zealand services market in key sectors such as financial services, telecommunications, maritime transport and delivery services;
- ensuring non-discriminatory treatment to EU investors in New Zealand and vice versa;
- improving access for EU companies to New Zealand government procurement contracts for goods, services, works and works concessions;
- facilitating data flows, predictable and transparent rules for digital trade and secure online environment for consumers;
- preventing unjustified data localisation requirements and maintaining high standards of personal data protection;
- helping small businesses export more through a dedicated chapter on small and medium enterprises;
- significantly reducing compliance requirements and procedures to allow for quicker flow of goods;
- significant commitments by New Zealand to protect and enforce intellectual property rights, aligned with EU standards.
Categories : World Focus
Tags : Business EU Free Trade Growth New Zealand SMBs
