The Strategist

EU and New Zealand sign free trade agreement

07/10/2023 - 10:11

According to a news release from the European Commission, the European Union and New Zealand inked a free trade deal that should enable a 30% rise in commercial turnover.

"Duties for businesses from the European Union will be cut by €140 million starting in the first year of the deal. As a result, bilateral commerce is anticipated to grow by 30% over the next 10 years, and yearly EU exports may increase to €4.5 billion," according to the press release.

The deal needs to be approved by the European Parliament and ratified in New Zealand before it can eventually go into effect.

The free trade deal has been under discussion between the EU and New Zealand since 2018.

The EU presently holds the third-place position in New Zealand's foreign trade, after China and Australia. In 2022, trade turnover was €9.1 billion.

The majority of EU exports to New Zealand are industrial items, while the country mostly imports agricultural products from the EU.