EU Ratifies Free Trade Agreement With New Zealand

The European Union has completed the ratifying procedures of the ambitious free trade agreement (FTA) with New Zealand.

The Council of the European Union on Monday decided to ratify the deal less than a week after the European Parliament gave its consent.

The deal is expected to cut some EUR140 million a year in duties for EU companies. As a result, bilateral trade is expected to grow by up to 30 percent within a decade, with EU exports growing by up to EUR4.5 billion annually. EU investment into New Zealand is expected to grow by up to 80 percent.

This landmark agreement also includes unprecedented sustainability commitments, including respect of the Paris Climate Agreement and core labour rights.

Trade agreements form part of the EU’s open trade – or “partnering” – approach, which is one of the three goals of the European Economic Security Strategy presented in June. This agreement also strengthens the EU’s engagement in the strategically and economically important Indo-Pacific region.

The European Commission President Ursula von der Leyen said, “New Zealand is a key partner for us in the Indo-Pacific region, and this ambitious free trade agreement will bring us even closer together.”

The EU-New Zealand FTA will provide new opportunities for businesses by eliminating all tariffs on EU exports to New Zealand; opening the New Zealand services market in key sectors such as financial services, telecommunications, maritime transport and delivery services; and ensuring non-discriminatory treatment to EU investors in New Zealand and vice versa.

The deal will improve access for EU companies to New Zealand government procurement contracts for goods, services, works and works concessions; and help small businesses export more through a dedicated chapter on small and medium enterprises;

Source: Read Full Article