A trade agreement signed between the European Union and New Zealand will boost trade between the two entities by 30 percent.
Negotiations on the free-trade agreement began in 2018 and concluded on 30 June, 2022, following 12 negotiating rounds. The agreement is set to open significant economic opportunities for companies and consumers on both sides, European Commission President Ursula von der Leyen said.
“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,” von der Leyen said. “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.”
The agreement is expected to be signed in 2023, according to European Commission Executive Vice President and Commissioner for Trade Valdis Dombrovskis.
“This is a new generation of trade deal, with both sides set to make real economic and environmental gains. New economic opportunities are vital as we strive to recover from the twin shocks of COVID-19 and Russia's aggression against Ukraine. This deal will unlock a raft of fresh export opportunities for E.U. businesses and SMEs for goods and services. It also contains the most-ambitious sustainability commitments in any trade agreement ever. This proves we are already delivering on our promise to get more added value from our trade deals in terms of sustainability,” he said.
The deal will result in NZD 100 million (USD 62.3 million, EUR 61.2 million) in tariff savings per year for New Zealand businesses, and New Zealand’s seafood sector alone is set to realize NZD 20 million (USD 12.5 million, EUR 12.2 million) in tariff reductions, according to trade body Seafood New Zealand.
E.U. tariffs on New Zealand seafood will be eliminated at entry on almost all fish, and also on mussels, squid, and other shellfish, according to Seafood New Zealand CEO Jeremy Helson.
“At a time when the industry is doing it tough, this is welcome news,” Helson said. “For seafood, 99.5 percent of New Zealand’s current fish and seafood trade will enter the E.U. tariff-free from day one, increasing to 99.9 percent within five years, and 100 percent within seven years. This agreement is the boost that New Zealand’s primary sector has been desperate for and couldn’t have come at a better time for the seafood industry. New Zealand seafood exports are currently at NZD 1.9 billion [USD 1.18 billion, EUR 1.16 billion] per year and the agreement with the E.U. will considerably increase those earnings. The impact of this deal will be felt right across the sector, from large companies to small family-run fishing businesses. The sector has been waiting for good news and this agreement delivers.”
Photo courtesy of Ann Worthy/Shutterstock
