EU – New Zealand Trade Agreement: Unlocking sustainable economic growth

Photo-illustration: Unsplash (Andy Li)

The EU and New Zealand have today concluded negotiations for a Trade Agreement, which is set to open significant economic opportunities for companies and consumers on both sides. The deal also includes unprecedented sustainability commitments, including respect of the Paris Climate Agreement and core labour rights, which are enforceable through trade sanctions as a last resort.

Bilateral trade is expected to grow by up to 30 per cent thanks to this deal, with EU annual exports potentially growing by up to 4.5 billion euros. EU investment into New Zealand has a potential to grow by up to 80 per cent. The deal can cut some 140 million euros a year in duties for EU companies from the first year of application.

“New Zealand is a key partner for us in the Indo-Pacific region. This trade agreement brings major opportunities for our companies, our farmers and our consumers, on both sides. It can help increase trade between us by 30 per cent. It includes unprecedented social and climate commitments. This new agreement between the European Union and New Zealand comes at an important geopolitical moment. Democracies – like ours – work together and deliver for people”, said European Commission President, Ursula von der Leyen.

New export opportunities for businesses big and small

The agreement 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. The New Zealand procurement market is worth some 60 billion euros a year.

-Facilitating data flows, predictable and transparent rules for digital trade and a secure online environment for consumers.

-Preventing unjustified data localisation requirements and maintaining the high standards of personal data protection.

-Helping small businesses export more through a dedicated chapter on small and medium enterprises.

-Significantly reducing compliance requirement 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.

Source: European Commission