The European Union and New Zealand have signed an agreement on a free trade agreement. They promise to reduce or abolish import duties on many of each other’s products. According to Ursula von der Leyen, president of the European Commission, the new agreements will lead to a 30% increase in trade between member states and New Zealand.
Von der Leyen defined the agreement, which arrived after four years of negotiations, special for several reasons. For example, commitments were made for the first time in an EU trade deal on the 2015 Paris climate goals. He also believes that New Zealand is the first country geographically far from the EU, but participates in the research and program of innovation Horizon Europe.
“With an unprecedented commitment to society and the climate, this promotes just and green growth,” von der Leyen said at the signing ceremony. New Zealand Prime Minister Chris Hipkins called it “the greenest trade deal ever, in a market with ever more demanding consumers”.
9 billion euros
The European Union is New Zealand’s third largest trading partner. Two-way trade in goods exceeded €9 billion last year, with New Zealanders mainly exporting fruit, wine and meat. The European Commission estimates that EU investment in New Zealand could increase by 80%.
In 2017, New Zealand and the EU already reached a cooperation agreement, in which they entered into a number of economic deals. That agreement has been in force since July 2022. The free trade agreement still needs to be approved by the European Parliament and ratified in New Zealand.
Source: BNR
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