The early entry into force of the New Zealand–European Union Trade Agreement (FTA) is paying off, with Kiwi goods exports to the EU surging by 28 percent during the first year.
“In the last 12 months, our goods exports to the EU surged from NZD 3.8 billion to over NZD 4.8 billion,” said Trade and Investment Minister Todd McClay.
“This is good news for all New Zealanders, especially our sheep farmers, kiwifruit growers and machinery exporters.”
Sheep meat was up 29 percent, adding an additional NZD 216 million, kiwifruit has increased by 69 percent, contributing a further NZD 316 million, and machinery was up an impressive 104 percent, providing NZD 173 million more compared to the previous year.
“Strengthening ties with trading partners is crucial to growing the New Zealand economy and driving up incomes for Kiwis. Better market access, lower costs, and fewer trade barriers with the EU are key to delivering the Government’s ambitious goal of doubling the value of New Zealand’s exports in 10 years.”
The NZ-EU FTA removed 91 percent of duties on New Zealand exports immediately, climbing to 97 percent after seven years. Wine, seafood, and a range of other products are also benefiting from significant tariff reductions.
“Our growing network of trade agreements means exporters now have more choices about where to sell their world-class products.”
At the same time, following significant engagement over the last month, the first in-person round of negotiations towards a comprehensive India-New Zealand Free Trade Agreement (FTA) will take place in India this week.
This followed the highly successful visit to India last year by Deputy Prime Minister Winston Peters and the formal launch of negotiations by Minister for Trade and Investment Todd McClay and Indian Minister of Commerce and Industry Piyush Goyal during the Prime Minister’s large trade mission to New Delhi in April.
“This is an important step in our trade relationship with India and signals the two Governments’ intent to deliver a high-quality outcome that benefits both countries.”
With a population of 1.4 billion and a GDP estimated to grow to USD 5.2 trillion by 2030, India offers significant opportunities for New Zealand exporters.
“Strengthening ties with India across the board is a key part of the Government’s broader strategy to diversify and grow New Zealand’s export markets and double trade by value in 10 years."
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