Trade Agreement between EU and New Zealand is set to open significant economic opportunities for companies and consumers on both sides
The European Union (E.U.) and New Zealand have negotiations on a Trade Agreement, which is set to open significant economic opportunities for companies and consumers on both sides.
The agreement includes commitment to sustainability, including respect for the Paris Climate Agreement and core labour rights, which are enforceable through trade sanctions as a last resort.
The bilateral between E.U. and New Zealand is expected to grow by 30% with E.U. annual exports potentially growing upto € 4.5 billion. The E.U.’s investment into New Zealand has a potential to grow upto 80%. The new agreement will cut some € 140 million a year in duties for E.U. companies from the first year of application.
The agreement will provide new opportunities for businesses by eliminating all tariffs on E.U. exports to New Zealand and opening the New Zealand services market in key sectors such as financial services, telecommunications, maritime transport and delivery services. It will also ensure non-discriminatory treatment to E.U. investors in New Zealand and vice versa. It will also improve access for E.U. companies to New Zealand government procurement contracts for goods, services, works and works concessions. The New Zealand procurement market is worth some € 60 billion a year.
Taking it to twitter, the President of European Commission – Ursula von der Leyen tweeted,
🇪🇺🇳🇿 The EU and New Zealand may be on the other side of the world to each other.
— Ursula von der Leyen (@vonderleyen) June 30, 2022
But we are so close, in our values and in our goals.
And today, we are making our partnership stronger than ever concluding the negotiations of our Free Trade Agreement.
https://t.co/e4Ta7LPP3X
She further tweeted,
The world needs right now a clear signal that democracies – like ours – deliver for people.
— Ursula von der Leyen (@vonderleyen) June 30, 2022
This is why the EU is working to strengthen its partnerships with like-minded partners.
And dear @JacindaArdern, New Zealand is a close like-minded partner for us. pic.twitter.com/jp40MsoeSv
The agreement will also facilitate data flows, predictable and transparent rules for digital trade and a secure online environment for consumers. It will prevent unjustified data localisation requirements and maintain the high standards of personal data protection. In addition, it will help small businesses export more through a dedicated chapter on small and medium enterprises. Compliance requirements will be reduced to allow quicker flow of goods. New Zealand has also made to protect and enforce Intellectual Property Rights, aligned with E.U. standards.
Besides, the E.U. farmers will have much better opportunities to sell their produce in New Zealand immediately upon application of the agreement. The agreement also takes into account the interests of E.U. producers of sensitive agricultural products such as several dairy products, beef and sheep meat, ethanol and sweetcorn. For these sectors, the agreement will allow zero or lower tariff imports from New Zealand only in limited amounts.
Going ahead, the negotiated draft texts will be published shortly. These texts will go through legal revision and will be translated into all official E.U. languages. Following that, the European Commission will submit the agreement for signature and conclusion to the European Council. Once adopted by the European Council, the E.U. and New Zealand can sign the agreement. After that, the text will be transmitted to the European Parliament for consent. After the consent by the Parliament, and once New Zealand also ratifies it, the agreement can enter into force.
