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EU, New Zealand Sign FTA

A free trade agreement between the EU and New Zealand, signed July 9, is expected to grow trade between the parties by 30% within 10 years, the commission said. The deal would eliminate all tariffs on EU exports to New Zealand, open the New Zealand services market in "key sectors," establish nondiscriminatory treatment for European investors, boost access for New Zealand government procurement, facilitate data flows, halt data localization requirements and strengthen intellectual property rights, the commission said.

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It said the trade deal is the "first one to integrate the EU's new approach to trade and sustainable development." This means "ambitious" commitments covering goods based on cooperation and boosted enforcement. The agreement has a "dedicated sustainable food systems chapter, a dedicated trade and gender equality article and a specific provision on trade and fossil fuel subsidies reform." The FTA would go into force following ratification by the EU and New Zealand.

The New Zealand government said the agreement would allow the country to drop duties on 91% of the country's goods shipped to the EU, with this number rising to 97% after seven years. It also would establish new quota access for beef, sheep meat, butter and cheese.

“Tariff savings on New Zealand exports are $100 million from day one of the agreement entering into force, the highest immediate tariff saving delivered by any New Zealand FTA," Prime Minister Chris Hipkins said. "That’s around three times the immediate savings from the UK FTA."