Discover how the new EU-NZ trade deal could boost European exports by €4.5 billion annually. Will your business benefit from this economic growth?
As you open the newspaper today (Wednesday, May 1), you’ll find a headline you’ve been eagerly waiting for: The EU-New Zealand trade agreement is finally in force. According to the European Commission, this much-anticipated step could catalyze the growth of EU exports to New Zealand by a staggering €4.5 billion annually.
The benefits this agreement brings to EU companies, producers, and farmers are vast. The trade agreement is expected to reduce duties for them by a significant €140 million per year. The Commission is even forecasting that trade between the EU and New Zealand will grow by up to 30% within a decade as a direct result of this deal. As an investor, you could also see EU investment in New Zealand surge by 80%.
This isn’t just any trade agreement, though. It includes unprecedented sustainability commitments. The respect of the Paris Climate Agreement and core labour rights are baked right into the agreement. Demonstrating that economic prosperity and sustainability can indeed go hand in hand.
From the onset, the agreement is all set to eliminate tariffs on key EU exports to New Zealand. Picture this: Your exports of pigmeat, wine and sparkling wine, chocolate, sugar confectionary, and biscuits – all delivered without the weight of extra tariffs. The golden benefit, however, is for “sensitive EU agricultural products” like beef, sheepmeat, and dairy products. They will be protected with carefully designed tariff rate quotas.
- The deal allows 10,000t of beef from New Zealand to be imported with a reduced duty of 7.5%.
- A tariff rate quota permits 38,000t of duty-free sheepmeat imports.
- The agreement will see 15,000t of milk powders imported with a 20% duty rate, and 25,000t of cheese and 3,500t of whey imported duty-free.
- The duty on over 35,000t of butter imports will also be reduced.
- These volumes will be gradually phased in over the next seven years.
The Free Trade Agreement (FTA) also protects all EU Geographical Indications (GIs) for wines and spirits, along with the heritage of 163 of the most renowned traditional EU products such as Feta, Istarski Prsut Ham, and Elia Kalamatas olives.
We’ve arrived at this landmark day after a journey that took over four years, with negotiations for the EU-New Zealand trade agreement having started back in June 2018. Last November, the European Parliament voted to adopt the deal. This was followed by a decision to conclude the agreement by the European Council. New Zealand completed its ratification procedure just over a month ago, on March 25, 2024. Today, we see the fruition of these efforts, paving way for a prosperous trade future between the EU and New Zealand.
