This European Union (EU) and New Zeland signed this sunday a free trade agreement in which they wish to increase their commercial exchanges by 30% thanks to the abolition of export tariffs and greater opening of service markets.
“This is a very ambitious and very balanced free trade agreement. I think it presents a lot of opportunities for our respective companies,” European Commission President Ursula von der Leyen said at a press conference with New Zealand Prime Minister Chris Hipkins before it was signed. in Brussels.
The agreement, signed in 2022 after four years of negotiations, will remove all tariffs on exports from the EU to New Zealand, which consists mainly of manufactured goods, while the EU bloc will remove them for the vast majority of New Zealand’s exports, primarily agricultural products.
reciprocal trade of goods between the two 9.1 billion euros in 2022 According to the latest figures released by Community Executive, in 2021 services reached 3,500 million, while EU investments in New Zealand reached 9,300 million and that country’s investments in Twenty-Seven reached 4,300 million.
Brussels hopes the EU will export to New Zealand with this deal can increase by up to 4,500 million euros per yearAs Valdis Dombrovskis, Vice-President of the Commission for Trade, explained, European investments are growing by 80% and block companies are saving 140 million euros per year.
Once the agreement is ratified and put into effect by both parties, it will also lead to the opening of the New Zealand services market for European firms in sectors such as financial services. telecommunication anyone sea transportand an improvement in the country’s access to the public procurement market, worth around €60,000 million per year.
As announced by the New Zealand Trade Minister, New Zealand estimates that the deal, as its third trading partner this Sunday, will allow it to increase its exports to the EU by $1,800 million (1,640 million euros) per year. , Damien O’Connor, at a press conference.
In the agri-food chapter, which is sensitive for the EU given New Zealand’s strength, in addition to removing all tariffs on European exports, The agreement protects all European wines and spirits and other products of specified origin.Like Rioja wine or Manchego cheese.
Likewise, the volume of New Zealand imports that can benefit from tariff reductions for certain products of concern to Europeans, such as dairy, beef and mutton, ethanol or corn, will be limited.
On the other hand, The agreement includes for the first time sustainability commitments and requires compliance with the Paris Climate AgreementIn line with the EU’s new approach to promoting sustainability also through its trade relations, including sanctions for non-compliance.
“There are significant commitments on climate change and leading results in the Paris Agreement and in other areas, including workers’ rights, gender equality or environmentally harmful subsidies,” said the New Zealand prime minister. both parties have a system based on human rights, global security or international rules.
This collaboration also includes the agreement signed today for New Zealand to participate in the Horizon Europe community research and innovation program, which will mobilize around 100,000 million euros over seven years, and the country’s agreement to cooperate with Europol. in effect from today.
“These agreements bring the EU and New Zealand even closer. Although it is a world apart we have a lot in common“Thanks to New Zealand for its compliance with European sanctions against Russia and its support for Ukraine, although at opposite points,” said von der Leyen.
“From the Russian war in Ukraine to escalating tensions in the Indo-Pacific region, the geopolitical landscape is increasingly changing and uncertain. There are more reasons for like-minded partners to strengthen our ties to address different risks.”