The European Commission has said that EU exports to New Zealand could grow by up to €4.5 billion annually as a new trade agreement enters into force today (Wednesday, May 1).
The EU-New Zealand trade agreement is expected to reduce duties for EU companies, producers and farmers by €140 million per year.
The commission is forecasting that trade between the EU and New Zealand will grow by up to 30% within a decade as a result of the deal, while EU investment in the country could increase by 80%.
The agreement also includes unprecedented sustainability commitments, including respect of the Paris Climate Agreement and core labour rights.
New Zealand
The agreement will eliminate tariffs from day one on key EU exports such as pigmeat, wine and sparkling wine, chocolate, sugar confectionary and biscuits.
The commission said that “sensitive EU agricultural products” such as beef, sheepmeat and dairy products will be protected with “carefully designed tariff rate quotas”.
The deal allows 10,000t of beef from New Zealand to be imported with a reduced duty of 7.5%. A tariff rate quota of 38,000t of duty-free sheepmeat imports will also be allowed.
The agreement will see 15,000t of milk powders imported with a 20% duty rate, along with 25,000t of cheese and 3,500t of whey imported duty free.
The duty on over 35,000t of butter imports will also be reduced. These volumes will be gradually phased in over the next seven years.
The free trade agreement (FTA) protects all EU geographical indications (GIs) for wines and spirits, along with 163 of the most renowned traditional EU products such as Feta, Istarski prsut ham, and Elia Kalamatas olives.
Negotiations for a trade agreement between the EU and New Zealand began in June 2018 and took over four years to complete.
The European Parliament voted to adopt the deal last November, which was followed by a decision to conclude the agreement by the European Council. New Zealand completed its ratification procedure on March 25, 2024.