After four years and 12 rounds of negotiations, New Zealand and the European Union (EU) successfully concluded free trade agreement (FTA) negotiations on 30 June 2022.
The signed agreement secures favourable access for New Zealand companies to one of the world’s largest markets. The timing of this agreement is important as it is seen as being able to contribute substantially to New Zealand’s ambition for an export-led COVID-19 recovery.
Benefits to New Zealand exporters
After being formally signed in Brussels, the free trade agreement now must be ratified by New Zealand’s Parliament and all 27 EU member states to come into effect. According to the official website of the New Zealand Government, the deal delivers tangible gains for the New Zealand economy:
- Once the FTA is fully implemented, export revenue to the EU is expected to grow by up to $1.8 billion.
- Over 91 per cent of New Zealand’s exports will be free of tariffs the day the FTA comes into force. This increases to 97 per cent once fully implemented.
- New Zealand exporters are set to save approximately $110 million per annum on tariff elimination, with $100 million slashed from day one.
- Immediate tariff elimination for all kiwifruit, wine, onions, apples, mānuka honey and manufactured goods, as well as almost all fish and seafood, and other horticulture products.
- New quota opportunities worth over $600 million in annual export revenue for dairy and red meat sector once fully implemented, with an eight-fold increase in beef access to the EU market.
- New Zealand service providers will be able to access the EU market on an equivalent basis to local and foreign service providers in a range of sectors including education.
Once fully implemented, the NZ-EU FTA is expected to deliver more to New Zealand GDP than the recently signed free trade agreement with the United Kingdom.
Tātaki Auckland Unlimited looks forward to working with Auckland companies, and our friends and colleagues representing the EU, such as the German-New Zealand Chamber of Commerce and the French New Zealand Chamber of Commerce, to leverage this new FTA, identifying opportunities and creating positive outcomes for Tāmaki Makaurau Auckland.
Find out more
Contact International Specialist Paul Wilkinson to learn more about doing business in Tāmaki Makaurau Auckland, New Zealand.
DISCLAIMER: This article provides general information on potential investment opportunities in Auckland and is not intended to be used as a substitute for financial advice. The views and opinions expressed are those of the relevant author, and do not necessarily reflect the views of Tātaki Auckland Unlimited. Tātaki Auckland Unlimited disclaims all liability in connection with any action that may be taken in reliance of this article, and for any error, deficiency, flaw or omission contained in it.