The EU completed political procedures ratifying the ambitious free trade agreement (FTA) with New Zealand.
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The decision by the Council of the European Union comes less than a week after the European Parliament gave its consent.
The deal is expected to cut some €140 million a year in duties for EU companies.
As a result, bilateral trade is expected to grow by up to 30% within a decade, with EU exports growing by up to €4.5 billion annually.
EU investment into New Zealand is expected to grow by up to 80%. This landmark agreement also includes unprecedented sustainability commitments, including respect of the Paris Climate Agreement and core labour rights.
The EU-New Zealand FTA will provide new opportunities for businesses by:
Eliminating all tariffs on EU exports to New Zealand;
Opening the New Zealand services market in key sectors such as financial services, telecommunications, maritime transport and delivery services;
Ensuring non-discriminatory treatment to EU investors in New Zealand and vice versa;
Improving access for EU companies to New Zealand government procurement contracts for goods, services, works and works concessions;
Facilitating data flows, predictable and transparent rules for digital trade and a secure online environment for consumers;
Preventing unjustified data localisation requirements and maintaining high standards of personal data protection;
Helping small businesses export more through a dedicated chapter on small and medium enterprises;
Significantly reducing compliance requirements and procedures to allow for quicker flow of goods;
Significant commitments by New Zealand to protect and enforce intellectual property rights, aligned with EU standards.
Upon application of the agreement, EU farmers will have much better opportunities to sell their produce in New Zealand. Tariffs will be eliminated as of day one on key EU exports such as pig meat, wine and sparkling wine, chocolate, sugar confectionary and biscuits.
EU farmers will see benefits beyond the tariff cuts.
The FTA will protect the full list of EU wines and spirits (close to 2,000 names) such as Prosecco, Polish Vodka, Rioja, Champagne and Tokaji.
The agreement takes into account the interests of sensitive EU agricultural sectors, including a number of dairy products, beef and sheep meat, ethanol and sweetcorn. For these sectors, there will be no liberalisation of trade. Instead, the agreement will allow zero or lower tariff imports from New Zealand only in limited amounts (through so-called Tariff Rate Quotas). ■