EU, New Zealand ink landmark FTA to boost bilateral trade & investment

The landmark agreement is projected to spur bilateral trade growth by up to 30 per cent within the next decade. EU annual exports could see a potential surge of up to €4.5 billion, and EU investment in New Zealand has the potential to grow by as much as 80 per cent.

In addition to the considerable financial benefits, the agreement includes sustainability commitments. These include adherence to the Paris Climate Agreement and the reinforcement of core labour rights, reflecting the growing trend of integrating climate and social concerns into international trade deals, the European Commission said in a press release.

With the agreement signed, it has been sent to the European Parliament for approval. Following the ratification process in both the EU and New Zealand, the deal is expected to come into effect.

The FTA is poised to create a wealth of new export opportunities for businesses of all sizes. Among the key features of the deal are the elimination of all tariffs on EU exports to New Zealand, assurance of non-discriminatory treatment for EU investors in New Zealand and vice versa, and improved access for EU companies to New Zealand government procurement contracts.

The agreement also addresses digital trade, providing for easier data flows, transparent digital trade rules, and a secure online environment for consumers. The deal aims to mitigate unjustified data localisation requirements while upholding high standards of personal data protection.

Notably, the agreement contains provisions aimed at aiding small businesses, with a chapter dedicated to small and medium-sized enterprises (SMEs). The intention is to bolster SME exports, reduce compliance requirements, and expedite the flow of goods.

The deal also includes significant commitments from New Zealand to protect and enforce intellectual property rights in line with EU standards.

“New Zealand is a key partner for us in the Indo-Pacific region, and this free trade agreement will bring us even closer together. With today's signature, we have taken an important step in making the agreement a reality. This modern free trade agreement brings major opportunities for our companies, our farmers and our consumers, on both sides. With unprecedented social and climate commitments, it drives just and green growth while reinforcing Europe's economic security," said Ursula von der Leyen, president of the European Commission.

ALCHEMPro News Desk (DP)