NZ’s Major Free Trade Deal with EU

NZ's Major Free Trade Deal with EU

Negotiations between New Zealand and the European Union have concluded and resulted in a major free trade agreement. A press release from the Beehive yesterday outlined the decision.

The agreement will see New Zealand's export revenue to the European Union grow by $1.8 billion annually, save exporters around $110 million annually in tariffs and provide new quota opportunities worth over $600 million for the dairy and red meat sector.

"It’s a strategically important and economically beneficial deal that comes at a crucial time in our export-led COVID-19 recovery. It delivers tangible gains for exporters into a restrictive agricultural market. 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." Said Prime Minister Jacinda Ardern.

There will be the complete removal of duties on the majority of kiwi products exported into 27 European nations. Immediate tariff elimination will be put in place for all kiwifruit, wine, onions, apples, manuka honey, manufactured goods, most fish and seafood and other horticulture products.

"This is the fifth Free Trade Agreement the Government has concluded in the past five years and sits alongside upgrades to our existing agreements with Singapore and China. The increase in market access we’ve negotiated means 73.5% of our global exports are now covered by an FTA, up from only around 50 percent when we took office."

"It is consistent with our approach to trade negotiations, the agreement contains legally enforceable commitments on climate action, environment and labour standards and gender equality. New Zealand is pleased to be the EU’s first-ever FTA partner to conclude such an outcome." Said Trade and Export Growth Minister Damien O’Connor.