A new trade agreement between the European Union and New Zealand signals a substantial step forward in their economic partnership. The deal aims to lift bilateral trade by about 30 percent through the removal of export duties and broader access to service markets on both sides. This represents a clear push to strengthen commercial ties while opening opportunities for businesses across the EU and New Zealand.
Official remarks at the signing in Brussels framed the agreement as both ambitious and balanced. European Commission President Ursula von der Leyen called the accord a platform brimming with opportunities for companies in both regions, highlighting a shared commitment to a liberalized, rules-based trade environment that supports growth and investment.
Negotiations culminated in a text finalized in 2022 after more than four years of discussions. Under the terms, EU exports to New Zealand will face no tariffs for most manufactured goods, while New Zealand will likewise eliminate tariffs on the majority of its exports to the EU, with a particular emphasis on agricultural products. The reciprocity aims to boost trade efficiency and reduce friction for firms trading across both continents.
Trade in goods between the EU and New Zealand reached 9.1 billion euros in 2022. In 2021, services trade totaled 3.5 billion euros, while EU investment in New Zealand stood at 9.3 billion euros and New Zealand’s investments in the EU were around 4.3 billion euros. Proponents of the deal anticipate a notable annual increase in EU exports to New Zealand, potentially reaching several billion euros as the agreement takes full effect, according to remarks from trade officials. European investors are expected to grow substantially as company performance improves and regulatory barriers ease, with savings on operating costs projected for many firms.
Once ratified, the agreement will also open New Zealand’s services market to European entities in sectors such as financial services, telecommunications, and maritime transport. It also promises better access to public procurement markets, which in Europe is a sizeable arena with opportunities valued in the tens of billions of euros annually.
New Zealand’s trade minister indicated that the agreement could raise exports to the EU by around 1.6 billion euros per year, reinforcing New Zealand’s role as a growing trading partner. The phrasing of this forecast reflects the broader confidence in enhanced export opportunities and improved market access for both sides.
In the agri-food chapter, the pact addresses Europe’s sensitivity to New Zealand’s farm sector by preserving protections for European wines, spirits, and other designated origin products such as Rioja wine and Manchego cheese. While tariff reductions are extended to many New Zealand imports, some product categories of traditional interest to European producers, including dairy, beef, and certain animal products, face controlled access to ensure market balance.
The agreement introduces sustainability commitments for the first time in this bilateral framework and requires adherence to the Paris Climate Agreement. This aligns with the EU’s emphasis on sustainable trade practices and includes enforcement measures for non-compliance. Officials noted that these terms cover climate change, workers’ rights, gender equality, and the elimination of environmentally harmful subsidies, highlighting a shared approach to responsible growth and fair competition.
New Zealand’s prime minister stressed that both parties will rely on a framework rooted in human rights, global security, and adherence to international rules, complemented by mechanisms to monitor and enforce these standards. The collaboration also includes New Zealand’s participation in the Horizon Europe research and innovation program, with a planned mobilization of substantial funding over seven years, as well as cooperation with Europol as part of ongoing security and governance arrangements.
The leaders underscored that the EU and New Zealand are geographically distant yet share many common interests. The dialogue has intensified cooperation and alignment on sanctions, notably in relation to Russia and support for Ukraine. Looking ahead, negotiators and policymakers view the evolving geopolitical landscape as a reason to deepen ties with like-minded partners who can help mitigate risk and promote stability across global markets.
Overall, the agreement is presented as a landmark that strengthens regulatory compatibility, expands mutual opportunity, and reinforces commitments to sustainable development, security, and shared prosperity. Its successful implementation is seen as a way to harness the benefits of liberalized trade while maintaining careful safeguards that protect key industries and important social and environmental standards.