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New Zealand and EU trade deal comes into force

29 days ago

2 minutes

The EU and NZ FTA (Free Trade Agreement) is expected to make trading opportunities much easier between the two regions, and is estimated to save EU companies €140 million a year in duties.

Source: European Union

The FTA agreement is expected to increase business opportunities in the EU and New Zealand by making trading much easier and cheaper with benefits for businesses, citizens and farmers. Its core focuses are on benefiting farmers, trade in goods, and investment & services on digital trade. The FTA is also underlines sustainability commitments that comply with the Paris Climate Agreement and core working rights.

Key FTA advantages that look set to improve business relations between EU & NZ

  • Zero tariffs on EU exports to New Zealand.
  • New Zealand’s service market to widen in key sectors including financial services, telecomms, maritime transport and delivery services.
  • Non-discriminatory treatment of EU investors in New Zealand.
  • EU companies to get improved access to New Zealand government procurement contracts for goods, services, works and works concessions.
  • Guidelines to help small businesses’ exports.
  • Significantly reduced compliance requirements and procedures.

The benefits that zero tariffs & improved trading market conditions present

It has been reported that in 2022 EU businesses exported €6.258bn of goods to New Zealand, and imported €2.807bn from there. Now that the new FTA has removed tariffs, this factor alone could save EU businesses approximately €140 million in duties per year on exporting their goods to New Zealand, and it is expected to help grow overall bilateral trade by up to 30% within a decade*.

*As published in European Commission, Trade Sustainability Impact Assessment

The FTA zero tariffs is exciting news for many European businesses, including those in the motor vehicles and parts industry, which previously experienced tariffs of up to 10%.

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