The European Parliament has today (Wednesday, November 22), voted to approve the Free Trade Agreement (FTA) between the EU and New Zealand.
The deal creates new opportunities for European farmers and food producers, while taking into account the interests of EU producers, according to the EU.
To protect some sensitive EU agricultural sectors, tariff rate quotas will apply to New Zealand products such as sheepmeat, beef, butter, cheese, and milk powder imports.
Agri trade
10,000t of high quality grass-fed beef from New Zealand will 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 high-protein 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 seven years from when the agreement enters into force.
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 FTA protects all EU geographical indications (GIs) for wines and spirits along with a list of 163 famous foodstuff GIs such as Feta, Istarski prsut ham, and Elia Kalamatas olives.
Free trade agreement
The FTA was approved with 524 votes to 85 and 21 abstentions. All Irish MEPs voted in favour overall, except for Left MEPs Clare Daly, Luke Ming Flanagan, Chris MacManus and Mick Wallace.
The FTA will remove 100% of New Zealand tariffs on EU exports on its entry into force and will lift 98.5% of EU tariffs on New Zealand trade after seven years.
The trade agreement was described as the “most progressive and sustainable” ever by the EU by the chair of the International Trade Committee and German MEP, Bernd Lange.
For the first time in an EU trade agreement, there could be trade sanctions, as a matter of last resort, in case of serious violations of core labour and climate commitments.
The deal also removes tariffs on green goods and services, such as renewable energy and energy efficient products, according to the parliament.
Member states are expected to give their formal approval on Monday, November 27. Once the agreement is ratified by New Zealand, it can then enter into force, likely by mid-2024.