EU investment into New Zealand has a potential to grow by up to 80 per cent. The deal can cut some €140 million a year in duties for EU companies from the first year of application, an official release from the Council said.
The EU is New Zealand's third-biggest trade partner. Bilateral trade in goods between the two partners has risen steadily in recent years, reaching almost €9.1 billion in 2022.
The agreement will eliminate all tariffs on key EU exports to New Zealand; open New Zealand’s services market in key sectors such as financial services, telecommunications, maritime transport and delivery services; ensure non-discriminatory treatment to EU investors in New Zealand and vice versa; and improve access for EU companies to New Zealand government procurement contracts for goods, services, works and works concessions.
It will also protect 163 of the most renowned traditional EU products with geographical indications; facilitate data flows, predictable and transparent rules for digital trade and a secure online environment for consumers; prevent unjustified data localisation requirements and maintaining the high standards of personal data protection; and help small businesses export more through a dedicated chapter on small and medium enterprises.
It will protect and enforce intellectual property rights, aligned with EU standards, according to commitments by New Zealand.
The EU concluded negotiations for the FTA on June 30, 2022.
The entry into force of the FTA will take place on the first day of the second month after both sides confirm having completed legal requirements and procedures or on another date agreed by the parties.
ALCHEMPro News Desk (DS)
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